Is Bitcoin a good investment?

February 21st, 2018

Wondering if you should invest in Bitcoin? If you’ve been paying attention to the news lately, you’ve certainly heard about the rise of Bitcoin. This new digital currency has been successful in gaining the attention of many enthusiasts around the world, but many wondering are still wondering, “Is Bitcoin a good investment?”

Is it a good option? Should you invest? What is Bitcoin all about? Well, before you start investing, there are few things to know.

What is Bitcoin?

Bitcoin is a cryptocurrency or digital currency which is similar to all other currencies. The price of Bitcoin fluctuates in relation to other exchanges; it can be used for buying of products and services with ease. Unlike other currencies, Bitcoin is decentralized, which means no country, government, or central bank is in charge of it. This means Bitcoin is not as susceptible to any government or central bank misconduct.

Pros of Bitcoin

Ease of Sending Money

Bitcoin is a decentralized currency system which allows you to send Bitcoin to any individual anywhere in the world in just a few simple taps. Money is transferred without going through a bank intermediary in mere seconds. This fact makes Bitcoin very popular, and instead of waiting for a few hours, you can now send payments almost instantly.

Limited Supply

Bitcoin is limited to 21 million units. This limits the amount of Bitcoin that can ever be produced. As it is limited, no central bank or government can print it like other currencies. This limited supply of Bitcoin helped contribute to the rise of the Bitcoin price.

Private

Most individuals feel that Bitcoin is completely anonymous, but in reality, this is not the case. Bitcoin is not entirely private as all transactions made can be seen on the Blockchain. However, your identifying details related to the transaction can’t be seen. If you don’t like banks spying on your account, Bitcoin is the best option. Many enthusiasts are excited about this privacy feature.

Cheaper to Transact

Many businesses around the world are taking MasterCard or Visa to stay competitive. However, these cards take some substantial fees out of every transaction. A merchant who is accepting Bitcoin doesn’t pay any of these hefty fees, so it puts more money in their wallet. Bitcoin is much cheaper and easy to use.

Cons of Bitcoin

Price Fluctuations

The price of Bitcoin is highly volatile. Recently you may have seen how its price has increased, but in no time its value can fall. Bitcoin is traded 24×7; its price is always fluctuating. Any bad news can send the price tumbling down. This is one major problem when it comes to Bitcoin. The key here is to invest an amount that you can afford to lose.

Slowing Transaction Speeds

Bitcoin is running into a few problems with slow transaction speed and higher fees. Many cryptocurrencies have come along which are much faster and cheaper. Miners are now working on this problem, but until the problem is resolved, it’s tough to expect the price to be volatile.

Bitcoin Transactions are Irreversible

Unlike credit card charges, Bitcoin transactions are irreversible. If Bitcoin is sent to the wrong address, it’s tough to get it back.

For this reason, you need to know what you’re doing, and it is good to do detailed research before buying Bitcoins.

Conclusion

In the last few months, the popularity of Bitcoin skyrocketed, and many individuals are excited to invest in this digital currency. The possibilities that come with this digital currency are numerous, but you need to consider another side as well. There are many important things that you should consider before investing in Bitcoin.

If you decide to buy, take some time to research all options available in the market. Don’t randomly buy from any seller; there are some trustworthy and great businesses available in the market. On the other hand, there are others overcharging, and many more deliver coins in time. Be safe by doing thorough research before you buy. Find a trusted seller in the business with a good reputation; there are quite a few available in the market now. Also, remember the golden rule; never invest any amount that you can’t afford to lose.

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