Are there reasons not to use Bitcoin?

September 18th, 2018

Are there reasons not to use Bitcoin?

For those of us keeping up with industry news, we’re already well aware of the potential it holds, but also of the debate it has drummed up across the financial industries. Concerns with the cryptocurrency’s technology, volatility, potential for use and more have all driven more and more sceptical individuals to questioning whether there are enough reasons not to use Bitcoin. Despite not only reaching an all time high in December of around $20,000, but being predicted to surpass this in the future, it’s the sudden drop after this high that has triggered so much concern, but are there other reasons? We’re investigating, below.

Bitcoin’s Current Success

Determining the current success of Bitcoin isn’t the easiest task, but it is clear to see that there are plenty of industries currently grasping the opportunity to both utilize and develop it regardless. More and more online retailers are opting to accept Bitcoin, from lesser-known companies such as Overstock and eGifter, to major players in their industry like Expedia and Microsoft. On a similar strain, a number restaurants and hotels are also accepting Bitcoin for payments, as are charities seeking online donations. In terms of sports and gaming, we’re seeing the online casino world adopt Bitcoins in order to allow quick withdrawals, and in terms of sports, everything from players transfers to online ticket purchases are now possible using Bitcoin.

All of this boils down to one thing – Bitcoin use is possible and it’s happening. So, why are so many companies and consumers starting to use Bitcoins?

Why Do So Many People Invest in Bitcoin?

The reasons that people decide to invest in and use Bitcoins can ultimately depend on their own personal situation or interests, not least including the allure of a decentralized payment option. With everything from the PPI payment scandal in UK banks, to the sheer ease in which hackers seem to be able to get hold of our payment details, more and more of us are losing trust in banks and traditional financial services. With Bitcoin and its blockchain technology, however, there is the potential for this to improve. Add in a dose of public conversation, promises of low transaction rates, new innovative technology and crowd-following psychology and it’s simple to see why so many people are paying attention.

What Are The Risks To Consider?

While Bitcoin holds the potential for a promising future, it’s important to remember that this isa new technology and as a result, there are certain things you need to consider and cater for if looking to get involved. While these reasons could be considered reasons not to invest in Bitcoin, there are equally as many solutions to counteract the negatives:

  • Regulation

Regulatory uncertainty is one of the leading turn-offs for investors across the globe, especially at the speed at which this is changing. As a decentralized entity, there is no sole body taking responsibility for its use or for how it works and with different countries classing cryptocurrencies as assets, commodities or something else entirely, financial bodies don’t often get much of a say. For this reason, the regulatory uncertainly can be a difficult thing to navigate. However, with further adoption, improved regulation could be set into place and ultimately help to reduce the risks involved with Bitcoin use. Any hacking or theft, though uncommon and nearly impossible, could be eradicated completely with regulatory safety measures put into place but this all depends on how each individual country tackles the issue. You should always do your research and ensure you deal with exchangers that are registered with FINCEN.

  • Understanding

Without a substantial understanding of Bitcoin and how it works, you simply can’t start to invest. The ‘Bitcoin Bubble’, as penned by the industry, is often thought to be at bursting point and investors and users who don’t understand why this is the case or what they may be able to do if this were to happen aren’t prepared to get involved. If you are considering investing in Bitcoin, you need to do your research. Get an understanding of what Bitcoin is, what it can offer you and what it can be used for in order to truly get a grasp on the commodity as a whole.

  • Security

Despite promises that blockchain technology could be the future of security, concerns around the actual level of safety online has turned many investors and users away from these digital coins. Behind Bitcoin sits a network of different nodes, all connected and running themselves. There is no central hub that these nodes are formed from or connected to and as a result, there should be no way for any hacks or security breaches to break through an entire network. However, with security breaches seemingly rife in the news anyway, the scepticism is understandable. The trusted companies in the market are all for security and are improving every day.

When it comes to Bitcoin and utilising these digital coins in trades and in everyday life, being able to determine the risk and safety of every transaction may be the key to ensuring security and that your general use is kept safe. Whether you’re already involved in Bitcoin or you’re considering it, simply make sure you so your research and remain prepared and you could counteract the potential risks with relative ease.

This disclaimer informs readers that the views, thoughts, and opinions expressed in the text/sponsored content belong solely to the author, and not necessarily to Bitcoin of America, organization, committee or other group or individual. All investments are at your own risk and should be done after careful research.

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