Wajdi Alkayal
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WHY YOU SHOULD AND SHOULDN’T INVEST IN BITCOIN IN 2021?
CYBERSECURITY LASTETS NEWS Top List
BY:WMK-IT
It is a wise move to invest in bitcoin in 2021. But know the disadvantages before it is late
Bitcoin is virtual money that can both make you rich and wipe off all the savings you have. Are you surprised how something can give two extremes? Yes, that is what cryptocurrency investments are like. They can sometimes be risky, but also has the potential to be extremely profitable. It is not just cryptocurrency, even the whole blockchain network became extremely popular among the public after bitcoin’s launch. Therefore, when it is still a nice breeze, take the wise decision to invest in bitcoin and reap the maximum out of it later.
Crypto enthusiasts see the digital currency market as a place where they can feel relieved from government and bank regulations. Although there are over ten thousand cryptocurrencies in use today, front-running tokens like bitcoin, ethereum, and dogecoin hit differently. When a new cryptocurrency is unleashed to the public, there is no assurance that it could be rewarding. But some have really ended up making the early investors filthy rich. For any cryptocurrency project, achieving widespread adoption is necessary to be considered a long-term success. Investing in bitcoin is not just about money. People who are well-versed in crypto tools can do better than others in some cases. Even a commoner can try to get tools that could help them manage and safeguard their crypto assets. But this doesn’t mean all is good in the bitcoin sector. Several factors make bitcoin not entirely safe, while other signs are merging that bitcoin is here to stay. Therefore, before you choose to invest in bitcoin in 2021, know the basic advantages and disadvantages of the cryptocurrency to make your investment journey smooth.
Rather than investing directly in cryptocurrencies, some are even buying stocks on companies with exposure to digital currency. This encrypts their money from getting direct exposure to bitcoin’s volatility and maintains a moderate value.
Reasons to Invest in Bitcoin
No, you are not late. If you think too much about being a latecomer to the cryptocurrency sphere, then you can’t reap the fruitful benefit from it. Therefore, forget that thought and just give it a try. Bitcoin is gaining more value and momentum in 2021. Although not all of them are positive, bitcoin’s value has multiplied thousand times before reaching where it is today. Many crypto enthusiasts predict that we are yet to see the full potential of bitcoin, which means, bitcoin could reach more heights in the coming years.
Besides, the overnight bitcoin millionaire stories are quite appealing to normal people. Even though bitcoin is not the only cryptocurrency in the market, those fairy tales make the digital currency investor’s first choice. We have listed a few more reasons why you can invest in bitcoin now.
Bitcoin is the Center of Other Cryptocurrencies
If you are keeping up with crypto updates on a daily basis, then you must know how important bitcoin is in the digital currency sphere. Bitcoin is not just the first cryptocurrency to be invented, but it is also the most superior. Because of its high adoption, bitcoin comes with a handful of features like good liquidity, institutional interest, more stability, etc. Besides, many trading sites devise their trading strategy to house bitcoin to its fullest. Therefore, it will be easy to access bitcoin with extraordinary features from anywhere in the world.
Easy to Transact Over any Circumstance
Although bitcoin is seen as digital gold, it has its own set of transaction advantages that makes it easy to access. Unlike ethereum, not many use bitcoin for shopping or purchase purposes. But it is time that bitcoin evolves and becomes as casual as ethereum in every circle. To be precise, bitcoin has the potential to be all that. Through a global transaction network, bitcoins can be sent securely across borders, in any amount, at low costs, as seamlessly as text messages, and without the need for trusted third-party involvement.
The Future might Hold More for Bitcoin Investors
‘Do what Romans do when you are at Rome!’ This saying suits the bitcoin market well. Currently, there are five million active users in the bitcoin circle and it is anticipated to grow drastically in the coming years. Any cryptocurrency’s price is valued based on its market adoption and usage. In that case, bitcoin will see massive investments in the future, which will eventually drive up its value.
Reasons to Not Invest in Bitcoin
Many financial experts say that they won’t recommend bitcoin to their customers because of the lack of characteristics common to other investments or asset classes including traditional currency or cash, as well as their volatility, security, the potential for future regulation, and other factors. Some of the other concerns that make bitcoin unfit as an investment model are as follows.
- Bitcoin token count is limited to computer programming. It portrays a perception of scarcity, without actually being scarce.
- Although users gain ownership of digital tokens when they buy a bitcoin, they get zero control over the underlying blockchain technology.
- Even when many argue that blockchain is unbreakable, the reported thefts and fraud activities in the bitcoin sphere are very high. It directly makes investments vulnerable to hacks.
- Unlike other investment models like gold or assets, bitcoin doesn’t drive value from any physical source.
- The regulations over bitcoin are still a mystery in many countries. While some have never talked about it, some other like India are still deciding how to manage it.
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