Bitcoin has become the most famous form of cryptocurrency in the present age and because of its so much positive financial benefits, everyone is considering investing in it. Are you also the one wondering to invest in Bitcoin? Are you wondering Bitcoin – Yes or No?
Although bitcoin is the new trend in the financial news, still, just like a coin has its bright and downside, Bitcoin also have some hazards that you should know before investing in it. So, here we are covering some important facts that you should know about investing in Bitcoin.
How & Why People Invest in Bitcoin Cryptocurrency?
Before considering the factors about the investment in bitcoin, it is better to check out the options you can have when it comes to investing in it. There are several ways through which you can invest in bitcoin including:
- Bitcoin Trading
- Bitcoin Mining
The reason for the worldwide popularity of bitcoin is because of the fact that it is the easier option and offers way more gains than other real-time money. Not only this, the bitcoin are easy to send, have limited supply, no taxation applied, cheaper to transact, they are useful and they are more private.
However, with these pros, there are some risks that come with the investments in Bitcoins. Read on to know:
The Risk of Investing in Bitcoin Cryptocurrency in 2018
Here are the reasons why you should stay away from investing in Bitcoin:
1: Extreme Volatility / High Risk
Investing in bitcoin involves a very high risk because these are extremely volatile. Most of the analysts find this kind of cryptocurrency to be skeptical because bitcoin are famous for rising slowly within months and then falling rapidly over a couple of days. The reason for its extreme volatility is because they are traded 24/7, their price is continuously fluctuating. In a nutshell, the bitcoin are not stable and there can be lots of unknown reasons that can be the cause of the decline in their prices.
2: Other Competing Currencies
Without any doubt, bitcoin are the most popular cryptocurrency in the present market. However, there are many others of its kind including Ethereum that also has the chance to rise. Although bitcoin are leading in the cryptocurrency market today, there is no guarantee that it will enjoy the position forever.
3: Prone to Illegal Activities
Another issue that poses a risk in the investment of Bitcoins is, unlike credit card charges, bitcoin transactions are irreversible. So, if you send the bitcoin transaction to the wrong address, you will not be able to get them back. Not only this, due to the lack of governmental control, the bitcoins are prone to illegal activities.
4: Neither Commodity nor Currency
The lack of clarity about the origin of bitcoin is another big issue for the investment in bitcoins. There is a number of currencies that are used in the present age including gold, silver, printed currency, fiat currencies etc. However, cryptocurrency doesn’t fall into the real currency category. So, it is really risky for businesses.
So look at both sides, positive and negative, before investing in Bitcoin.
BitCoin BTC Price – Coin Fact in December 2017
At the moment of writing this article, the value of One BitCoin – BTC is equal to US Dollars. But with great risk, there is an opportunity of making super normal profits as well. Make sure to only invest, what you can afford to lose.