The vast majority of people who have yet to invest in Bitcoin are certainly thinking about becoming an investor, and when you consider that if you have bought Bitcoin in April of this year, at today’s prices, you would have doubled your money, it does seem like a very attractive proposition. Like any other commodity, there is always an element of risk involved when investing in Bitcoin, and with that in mind, here are a few of the pros and cons you need to consider prior to making an investment in the number one cryptocurrency called Bitcoin.
The Pros of Bitcoin
- Bitcoin is a Payment Platform – Bitcoin is fast becoming the number one digital currency that is used to world over, and it is more than just a digital currency, as Bitcoin is also a payment platform. When you send another person an amount of Bitcoin, there are no third parties involved, as Bitcoin is a public ledger that uses open source software. There might be nominal fees to pay when transferring large amounts, but nowhere near as much as a bank or credit card provider would charge, and what’s more Bitcoin transactions are totally anonymous, as only the sender and recipient know about the transaction.
- Buying & Selling Bitcoin is Easy – If you would like to buy Bitcoin, you simply download the free Bitcoin virtual wallet software, then approach a reputable Bitcoin dealer, who would be happy to sell you Bitcoin for the equivalent of the fiat currency of your choosing. Once you have installed the software on your device, you have a private and public key, both of which must be used when making a transaction.
- Many Retailers Accept Bitcoin as a Form of Payment – More and more retailers are adding Bitcoin to their list of payment gateways, which means you can pay for goods or services without having to change Bitcoin into dollars.
The Cons of Bitcoin
- The price of Bitcoin Could Fluctuate at Any Time – While Bitcoin is not connected to banks or gold reserves, the price is established by supply and demand, and it could rise or fall by significant amounts at any time. While there is no such thing as a cast-iron investment, the experts are predicting the price of Bitcoin will remain stable, although there are no guarantees of this.
- Bitcoin Can Be Lost – In the event you lost your private digital key, then you can never access your Bitcoin. There are two keys with Bitcoin; the public key, which people would need if they are to send you Bitcoin, and the private key, which you need if you wish to access your Bitcoin. You should keep several digital copies of your private key in different locations, just in case.
If you are thinking of investing in Bitcoin, you are advised to carry out some online research, in order to better understand the cryptocurrency, then you will be in a position to make an informed decision.