Bitcoins are the future of trading and business investments. Let figures speak for it. According to a study by Statista, around 46 million Americans have a share in Bitcoins.
Are you too interested in Bitcoin? You have a high chance of riding the growth. Bitcoin has a lot of advantages over fiat currency. So start trading in Bitcoin. Use the BITLQ, a platform that can help you trade safely. Visit the website the-bitlq.com to learn more about it.
But at the same time, the naysayers do not approve of it; of course, there are their own reasons for it. Therefore to avoid being in a state of two minds, let us discuss a few points on the reasons why and why you must refrain from trading in Bitcoin. Let’s start with the discussion here so that you get a better understanding of things here.
Reasons Why You Must Invest In The Bitcoin
There are many reasons why you must invest in Bitcoins. If you simply look at the value of Bitcoin when it started the journey, it was a mere 135.3 USD.
But by the month of November 2020, it reached a massive 57848.77 USD. You could well understand the capacity of growth latent in the digital currency. So here we discuss some of the reasons why to invest in Bitcoin.
1. Based On Advanced Technology
Bitcoins are based on Advanced Technology called the Blockchain. The Blockchain is advanced data storage technology that safeguards your data. When you enter the figures in the Blockchain, they get saved in a decentralized ledger across a wide range of computers.
Once the information is recorded, it can not be altered. Blockchain uses encryptions to safeguard your data. So there remains no opportunity for the hacker to get into your network and take them to ransom.
2. Less Time, Low Fees
Generally, it can take days to complete the entire process whenever you transact using a third-party processing system like Debit and Credit cards. But with Bitcoin, you can do it within hours.
Bitcoins do not involve any third party, so you can transact with lesser fees. For instance, if you are sending 1000 USD, with third-party payment processing, it can charge 3% to 4% based on the nature and value of the transactions, but with Bitcoin, you can do it with a fraction of the expenses of the transaction value.
When you make a transaction from one account to another with the help of the traditional banking system, you have to go through a cumbersome process, including a lot of paperwork and address proof like photos, identity cards, and others.
But if you trade using Bitcoins, you can completely avoid the process. All you need to have is to create a Cryptocurrency wallet. You can have as many addresses as per your convenience. There is no bar or problem with it.
The present business ecosystem is getting difficult with time, and businesses want to eliminate the cumbersome process with flexibility and simplicity.
Reasons Why You Must Avoid It
Apart from the benefits that drive investors to trade Bitcoin, there are also negative points that stop them from investing. So we will look at two of the most vital points that prevent investors from investing in Bitcoin. So let’s try to understand it all here.
1. It is Unregulated
Any centralized or regulatory authority does not regulate Bitcoin. But on the other hand, other investments like mutual funds are regulated by the authorized organizations of the banks.
If you transact with the help of debit cards or Credit cards, you can move to the banks in case of any discrepancies. But on the other hand, if you lose money with Bitcoin, you can not take help from any entity. This is the high risk that you have with the Bitcoin investment.
2. Bitcoin Market is Volatile
One of the biggest drawbacks of Bitcoins or any other Cryptocurrency is the volatility. You might be at the summit of economic success with your investment. But overnight, you can go down.
There have been instances that the value of Bitcoin fell by almost 50%! Now, this is indeed a great fall. Therefore, you have to consider the point and refrain from investing in Bitcoin.
Closing The Discussion
Bitcoin has a great future because it brings high benefits for investors and growth opportunities. But the opposite side of the coin, the digital currency’s volatility, hurls the investors into the pit of uncertainty and doom. So you have to be cautious when investing in Bitcoin.