3 Drawbacks of Bitcoin and Why It’s Still Worth It

3 Drawbacks of Bitcoin and Why It’s Still Worth It

by October 27, 2021

One of the most popular cryptocurrencies ever since it was first introduced to the digital market is Bitcoin. It is one of the oldest cryptocurrency that has been around and there has been a lot of debates that have been thrown around about bitcoin. Whether it would be worth the money or what its future will be. No one can tell what exactly will happen to its future, but there are tons of experts that have shared their opinions about it.

Suppose you are new to the crypto market and you want to invest in bitcoin. In that case, there is tons of information that you need to know about it before you jump ahead and pour all of your money into it. Like any other cryptocurrency, bitcoin is no different when it comes to a high-risk investment.

Of course, there will be some drawbacks, but this is normal since there are different ways around them, and there are reasons why it’s still worth investing in them. This article will show you some of bitcoin’s setbacks and a couple of reasons why investment is still worth it. Crypto enthusiasts always prefer secure and beginner-friendly platforms like Immediate Edge to start off their journey.

High Volatility

One of the biggest concerns that many people have with bitcoin and the whole cryptocurrency is that its prices are highly volatile. Bitcoin’s prices are highly volatile, and this is not new to investors. Its price rises and falls at a rapid rate making bitcoin a high-risk investment. Suppose you are a new investor and you want to take the opportunity to invest in bitcoin. In that case, you are free to do so, but genuine investors have shared their opinions. Most of them see bitcoin as a dangerous cryptocurrency.



The threat of cyber hacking

Hacker in front of his computer, image via Freepik

Since most of bitcoin’s activity is connected to the internet, the threat of a cyber theft is imminent. The threat is not something we can avoid since there will always be someone who has bad intentions, but there are ways that we can prevent future cyber attacks. This setback is also one of the reasons why genuine investors are doubting whether bitcoin is still worth investing in. Although, it’s not long until technology comes up with a better way of protecting our assets online.

There are different forms of cyber hacking that you might come across when you start investing. One of the most common forms of theft in bitcoin is stealing private keys. Your private keys are essential to keeping your funds safe. So protecting it should be one of your top priorities.

Unregulated

This might be one of the significant reasons why there are mixed opinions from different investors about bitcoin. The bitcoin market is still operating without any major regulations. Although, it’s not only present in bitcoin but also in other cryptocurrencies that are in the crypto market today. Bitcoin being unregulated also means that no government or banks control what happens in a transaction within cryptocurrency. Unregulated also means no tax, which makes it an excellent opportunity to invest in bitcoin.

Having no tax is good, but like any other thing, it could lead to a series of new problems that might threaten the crypto market. People who have been accustomed to using bitcoin are well aware that cryptocurrency is still not widely accepted as a currency. Still, as technology continues to progress, there is no telling when or how soon bitcoin will substantially impact the market and society.

Is bitcoin worth it?

Even though bitcoin has several drawbacks, the overall performance of bitcoin that has given tons of benefits to its users is one of the many reasons why bitcoin is still worthy of an investment. In addition, if you decide to start trading with bitcoin, you won’t have to worry about the risk of inflation. Since bitcoin is unregulated, the risk of inflation doesn’t pose a threat to bitcoin since it will not lose its value.

Another reason why it’s still worth it to invest in bitcoin is because of its liquidity. Experts have stated that bitcoin is one of the most liquid assets that you can invest in. In addition, you can easily trade bitcoins or exchange them for different goods and services.

Conclusion

Investing in something that has a potential for profit always comes with a risk. Some of these risks are what make it a drawback. However, bitcoin had already shown its drawbacks a few years after its release, and there have been several improvements made to it. Bitcoin’s future is still hard to tell, but if you want to start buying cryptocurrencies, you can utilize exchanges and help you start trading.

 

Featured image credit: Unsplash

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