“Right now Bitcoin feels like the Internet before the browser.” ~Wences Casares
You must have heard this that it is possible to become filthy rich in cryptocurrency. However, there are chances that you can also lose all your money. This is something that make people confuse that how is it possible that both of these things are true. It is a good investment if you want to gain direct exposure to the demand for digital currency and the projects or businesses they facilitate.
There are many payment platforms that have started accepting payment in Bitcoin and other cryptocurrencies such as Paypal, Square, BitPay. Like all the other investments, crypto also comes with a host of risk but also has numerous potential rewards. In this article we are going to see what are some of the potential pros and cons of the cryptocurrencies.
Pros of Cryptocurrency Investment
Inflation Risk is low
This currency is different from the world currencies, as they are regulated by the government. The Bitcoin is immune to inflation. Also the blockchain system is infinite and you don’t have to worry about your cryptos losing their worth. As the crypto currencies offer alternatives that cannot be debased in the same way.
Most of the people are now attracted towards cryptocurrency and have certain experience in this field as mentioned by one of the writers at professional CV maker in Dubai. As the bitcoin and cryptocurrency are relatively young. So new coins are becoming mainstream on a daily basis. Therefore, this newness of this field brings unpredictable swings in price and volatility. This become the base for many people to get attracted towards this field and create opportunities for massive gains.
There is a public ledger that is known as the blockchain, in which each transaction that is made with bitcoin is monitored and recorded. There is no such case that a transaction can be changed once it is confirmed. Also every cryptocurrency transaction is verified and it cannot be manipulated by any hacker or scammer. Everything is in black and white and can be easily accessed.
The transaction of cryptocurrency can be done whenever you want to. As it doesn’t matter where you are all you need is an internet connection. The transaction can also be done through your mobile phone. It is easiest and fastest means of exchange across the globe, so bitcoin can also become a global form of currency.
The users of cryptocurrency and bitcoin have complete control their funds and transaction. In this way they can keep everything safe and anonymous. As the individuals or parties identity would not be disclosed in every transaction that is executed. This helps in saving oneself from fraud and identity theft as no private information is made public. Also now the users don’t have to rely on the bank or any other financial institution in order to make transactions as these cryptocurrencies are decentralized.
Cons of Cryptocurrency Investment
Threat of Online Hacking
One of the major threat that bitcoin investor can face is hacking. As the bitcoin exchanges give you access to buy or sell your cryptos using a mobile app or website. This makes the investors susceptible to hacking and theft of all the investment. Moreover, the bitcoin held on exchanges are also not insured by the FDIC.
The bitcoin and cryptocurrency for now is only being accepted by few online merchants. As there are many companies that don’t consider bitcoin as a legal exchange, creating it as an unfeasible investment vessel. On the other hand there is only a fixed supply of bitcoin.
Lost Coins Cannot be recovered
They are only available in digital form and have to be stored in the digital wallet. These wallets can only be accessed through private access key. For instance, the rational currencies can be retrieved, if something happens to the account. But as far as crypto currency is concerned there is no authority figure and it cannot be retrieved. In case you lose your private access key, you might also lose your digital assets.
The crypto market is known for its volatility, it is also subject to changing market prices. It’s important that the prices don’t change in the market, when you are investing. Otherwise it make you feel as a bad investment. Instead, like the business owner of CV editing service take it as a long-term investment as cryptocurrencies are still in their infancy stage.
Difficult to Understand
As most of the people lack the knowledge regarding the concept of a decentralized financial system that is stored with the help of blockchain technology. It might become difficult for them to understand this type of investment. Especially the investors who do traditional investment and have no familiarity with how modern technology works. Therefore, a lot of potential investors don’t put their trust in the crypto market due to this reason.
Till now you must have got an insight that whether you should invest in cryptocurrency or not. Although we think that its advantages outweigh the risks but still it should depend on your intentions. There are a lot of people who use cryptocurrency as a separate source of income by trading or investing it. Yet there are not a lot of people who use cryptocurency to do purchases. With time the value of cryptocurrency has increased and its more likely will strive to grow in the future. So choose wisely that investing in cryptocurrency will bear you fruits in the future or not.