Joining the Crypto Craze: The Top Pros And Cons Of Bitcoinby Fintech News Singapore October 27, 2021
When it was originally launched back in 2019, Bitcoin was by far the most widely adopted digital currency in the world. Currently, Bitcoin has a rough market value estimate of more than 677 billion dollars. Unlike the U.S. dollar, which is a government-created currency, there is only a finite amount of Bitcoin that could only come into existence, and that is a total of 21 million.
In recent statistics, roughly around 18.5 million coins have already been mined, which leaves about 2.5 million coins still to be discovered.
Moreover, Bitcoin is not different from any other form of high-risk investment. Whether or not you should invest in it is set on your investment objectives and your tolerance for its high risks. Before investing in Bitcoin, you have the right to know everything there is to know about the latest cryptocurrency trend. There are numerous disadvantages and advantages of investing, and you should be aware of them. Here is a list of pros and cons when it comes to investing in Bitcoin.
Pro – A Decentralised Digital Currency
One clear advantage of Bitcoin is the fact that it is decentralised. This means that it cannot be valued or regulated in any way by any form of government or bank. Cryptocurrency, in general, is depoliticised because it is created for the people and by the people. Moreover, Bitcoin cannot be stolen, nor can the government can’t seize them on any occasion.
Pro – Transparency and Lower Fraud Risk
With Bitcoins, consumers are now able to complete transactions without disclosing any financial or other important information to the seller. Bitcoins are similar to digital cash, and however, due to Blockchain technology, hackers can’t get their hands on it in any way. In the case of Bitcoin, digital consumers gain the benefit of being anonymous, and it’s all because their data is kept confidential as it is stored in blockchain technology.
Pro – It’s A Fast and Inexpensive Investment
Investing in cryptocurrency via platforms like Bitcoin Trader is easy. Not to mention that it only takes a few minutes for you to send money to another account, regardless of the destination and amount. Bitcoin, similar to e-mail and the internet, has no geographical limitations. Blockchain technology also has the assurance of protecting the rights of its users, making it the first and true global currency.
Con – The Greater the Reward, The Higher the Risks
When it comes to Bitcoin, there are a lot of risks involved. Generally, the Bitcoin that you’ve accumulated will all disappear if your hard drive crashes or there’s a virus involved that corrupts the files. The worst thing is that there’s nothing that can be done to get it back. Another drawback to Bitcoin is that there is no means to safeguard it from technological or human errors. If you mess up your Bitcoin wallet, it’s guaranteed that you will lose all of your coins. However, if you backup your wallet with a backup phrase code, there is a chance for you to get it back.
Con – New Consumer and Economy Protections
Despite its existence for over a decade now, Bitcoin still may have a few bugs yet to be discovered in its framework. To put into perspective, if Bitcoin is now widely implemented, then suddenly a bug was discovered, it might result in an exploiter gaining massive amounts of wealth at the cost of disrupting the Bitcoin economy. Furthermore, no government body is looking over Bitcoin’s functionality. Thus investors cannot rely on any form of government to compensate for the loss. If there are problems or if you have a complaint, you are unable to complain to anyone.
This may not be the complete list of pros and cons whenever someone is investing in cryptocurrency. But it’s crucial to understand everything that there is to it, as well as the potential for large losses. The decision whether or not to add Bitcoin to your portfolio depends on your judgement in balancing the pros and cons, the main ones of which are highlighted in this article.
Featured image credit: Unsplash