This can create scenarios in which the demand for bitcoins increases at a faster rate than the supply increases, which can drive up the price. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Transactions are recorded in a blockchain, which shows the transaction history for each unit and is used to prove ownership. Bitcoin Advantages and Disadvantages. Fortunately for bitcoin, its high visibility gives it an edge over its competitors. This number is capped at 21 million, where once this number is reached, mining activities will no longer create new bitcoins.