The Pros and Cons of
Investing in Bitcoin
If you are interested in investing in bitcoin,
then you’re not alone. It has become an extremely popular currency to trade
with, and there are many stories of how
people have become millionaires with a relatively small initial investment.
However, before you invest in bitcoin (or anything else), it pays to look at
both the pros and the cons. Once you have this information,
you will know whether bitcoin is the right investment for you.
Pro – No Payment Fraud
When you buy bitcoin UK, you can be safe
in the knowledge that they can’t be
counterfeited. This is because
they are digital and there are dozens of security measures in place, including
impossible to crack keys that make each and
every transaction unique.
Pro – Less Chance Of
Identity Theft
If you pay using a credit or debit card, you could be opening yourself
up to identity theft. These kinds of
cards are open to abuse, and someone who is intent on getting your information
could do so with a scanner, or other equipment. This can’t happen with bitcoin.
When paying with this method, you ‘push’ the right amount towards the
recipient, and no other information is sent
along with it.
Pro – Immediately Settlement
Paying by bitcoin means that your ‘debt’ is settled immediately because
the transaction doesn’t have to go through any third parties which can cause
delays. Third parties are eliminated through a bitcoin transaction, making
everything much quicker and also less expensive.
Pro – Lower Fees
When trading with bitcoin, you
won’t normally have to pay any transaction fees. This is because the bitcoin miners who are working
to create the blockchain out of all the bitcoin transactions taking place are paid in brand new bitcoins themselves. They
don’t need to take a percentage of your
profits, as they are paid separately.
Con – Illegal Activities
Something that many people are concerned about is the fact that bitcoin
trading and transactions could be financing illegal or immoral activities
because it can be used entirely anonymously. In fact, the entire premise of
bitcoin is that it is ‘anti-government’ or ‘anti-establishment’, so this image
fits well with this idea. Although those trading in bitcoin maintain that this
is not what happens, it is still a stigma that has stuck and could put people
off from getting involved.
Con – Risk of Loss
When it comes to trading with bitcoin, there is certainly a risk of loss
involved. This is partly to do with the
trade itself; there is a risk of loss with any trade, after all, and partly to
do with other factors. These include increasing regulation which could mean
that your transactions will be limited. Buying bitcoin before regulation comes
in and trying to sell it again afterward
may mean you lose money. Limits could be imposed
as the success of bitcoin continues to grow, and this will also curtail any
profits you might have hoped to make.
Con – Volatile Market
Bitcoin is a massively volatile market to get into, and the prices can
rise and fall dramatically in a matter of minutes. This can cause problems for those looking to make money as there is
no guarantee that you will walk away with a profit
or anything at all.
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