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Should You Invest in Bitcoin?

Investment 24 Total views No comments
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 Are you wondering if you should invest in Bitcoin? If you have been around any kind of financial news lately, you have no doubt heard about the swift rise in the world’s most popular cryptocurrency. In addition, if you are like a lot of people right about now, you are probably wondering, “Whether – yes or no?” Should you invest? Is it a good option? In addition, what is Bitcoin anyway? Well here are a few things you should know about Bitcoin before you invest. Also, note that this article is for information purposes only and should not be taken as any kind of financial advice.

[b]What is Bitcoin?[/b]
Bitcoin is known as a cryptocurrency or a digital currency. It is online money. Like any currency, you can exchange it for other currencies (like say, buy bitcoins with US dollars or vice versa) and it fluctuates concerning other currencies as well. Unlike other currencies, however, it is decentralized, meaning there is not anyone central bank, country or government in charge of it. Moreover, that means it is not as susceptible to government or central bank mismanagement. Here is a place you can invest on bitcoins.
[b]The Pros of Bitcoin[/b]
[b][i]Easy To Send Money[/i][/b]
Because it is decentralized, this also means that you can send a friend Bitcoin (money) on the other side of the world in seconds without having to go through a bank intermediary (and pay the banking fees). This fact alone makes Bitcoin very popular. Instead of waiting for a wire transfer, which can take days, you can send your payment in seconds or minutes.
[b][i]Insufficient Supply[/i][/b]
Only 21 million Bitcoins will ever be mined. This limits the amount of Bitcoin that can ever be produced. This is like saying a government cannot print money because there is a limited supply of bills – and they will not print anymore. When there is a set supply, your purchasing power is preserved and the currency is immune to runaway inflation. This limited supply has also helped to contribute to the rise in the price of Bitcoin. People do not want a currency that can be printed – or inflated – into infinity at the whim of a greedy government.
[b][i] Private[/i][/b]
Most people think that Bitcoin is completely anonymous. Actually, it is not anonymous but more private. All Bitcoin transactions ever made can be seen on the Blockchain are the public Bitcoin ledger. Nevertheless, your name and identifying details behind the transaction are not seen. Each transaction is linked to an address – a string of text and characters. Therefore, while people might see your address – there is no way to link that address to you. Many people who do not like their banks spying on them (or telling them how much of their own money that they can or cannot move), really like this privacy feature.
[b][i]Cheaper to Transact[/i][/b]
Many businesses have to take Visa or MasterCard these days to stay competitive. However, these cards take some rather substantial fees out of each sales transaction. However, a merchant who accepts Bitcoin does not pay these hefty fees – so it puts more money in their pockets. Therefore, those are some of the main pros of Bitcoins.
[b]The Cons of Bitcoin[/b]
[b][i]Price Fluctuations Risky [/i][/b]
Bitcoin is famous for rising slowly over months – and then falling 20 – 50% over a couple of days. Because it is, being traded 24 hours a day 7 days a week, the price is always fluctuating. In addition, all it takes it some bad news to send the price tumbling down. Therefore, it is not stable and there are many unknown out there which can affect the price. The rule here is this: do not put any money into Bitcoin that you cannot afford to lose.
[b][i] Slowing Transaction Speeds[/i][/b]
Bitcoin is starting to run into problems with slower transaction speeds and higher transaction fees. Other cryptocurrencies have come along that are faster and cheaper. The Bitcoin miners are working on the problem. However, until these issues are resolved, you can expect the price to be extremely volatile.
[b][i]Bitcoin Transactions Not Reversible[/i][/b]
Unlike a credit card charge, Bitcoin transactions are not reversible. Therefore, if you send Bitcoin to the wrong address – you cannot get it back. In addition, there are many tales from people who have lost their Bitcoin wallet address; and they have completely lost their coins. There is no way to get them back. For this reason, you need to know what you are doing and take the time to research how to buy and store your coins properly if you want to invest in Bitcoins – or any other cryptocurrency. Therefore, those are some of the things to consider before investing in Bitcoin. While Bitcoin has many great things going for it – and while it has the potential to change financial transactions, as we know it – there is still a lot of risks. There are many unknowns out there still. If you do decide to buy, take your time and research your options. Do not buy from just any seller. Some of them are trustworthy and run a great business. Nevertheless, others will overcharge you and may not even deliver your coins.
Be safe and do your research first. Find a trusted seller with a stellar reputation – there are quite a few of them out there. Moreover, remember the golden rule here – never invest more than you can afford to lose.