Bitcoin: Should You Invest?
By FVP Trade on The Capital
What are the Pros and Cons for Investing in Bitcoin:
Bitcoin and other cryptocurrencies are causing much controversy in the financial world. Their value is defined by a blockchain or complex code that can be shared among multiple computers but is completely anonymous and independent of any government issuer and regulations. This makes cryptocurrencies attractive for both legitimate (such as supply chain transactions between a company and its consumer) and illegal (laundering of money from drug transactions) use.
Separate it from its intended purpose, cryptocurrencies have become a vehicle for heightened speculation among traders and investors alike. The value of a Bitcoin soared to nearly $20,000 in late 2017 before falling back drastically. Large daily fluctuations in price give rise to fortunes being made and lost easily with cryptocurrencies. While some experts see a great future for cryptocurrencies, others feel it represents an overblown asset similar to other trends of the past. We wanted to hear what the experts had to say, so we asked them to weigh in regarding their opinions and advice on Bitcoin and cryptocurrencies.
Bitcoin — The pros:
The pros of Bitcoin is that they can be used very easily. Access to Bitcoin is available to every adult, and they can do with them whatever they considered is appropriate. Bitcoin prices are constantly changing, as is the same with traditional currencies, so you should monitor them frequently to ensure transactions at the most advantageous time. Bitcoin can be bought very quickly because there are no intermediaries, e.g. banks or other third parties, are not involved in the transactions.
It is also worth considering the low operating costs. This is one of the basic factors why cryptocurrencies have gained so much acceptance among the experts and the general public. Purchased Bitcoin immediately reaches the user’s account/wallet, and they can also be transferred to other people or given in the form of a voucher.
Bitcoins — The cons:
The main con of Bitcoin is mining it. Although having the right knowledge in this area will not be a major issue, at first, you’ll need to spend some time exploring it. In addition, you must have the right equipment for Bitcoin mining, so as you can clearly see the whole procedure also has its drawbacks.
Financial Experts Share Their Opinions on Bitcoin:
My View on Bitcoin:
If we look at Bitcoin on a balanced view, it is clear you will have people falling on both sides of the fence. Is it the new safe-haven asset to invest in, or is it an inflated asset to be wary of?
In my view, transacting in Bitcoin is secure as you don’t have to worry about any hackers when making transactions or your account being hacked due to the technology it is based on. This provides you with a private key, which is in the possession of the user only.
In regards to investing in Bitcoin with the current market trends and data, I believe it is just as stable as any traditional stocks, shares, commodities, or currencies. If you currently invest in any of the traditional markets and understand the risk implication of investing, then I would say give Bitcoin and the cryptocurrencies a go.
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