The media has undoubtedly been giving Bitcoin a lot of attention lately. And that, in turn, has caught the attention of many people, especially those looking for alternative investments.
This virtual currency uses blockchain technology that allows users to conduct transactions without the involvement of intermediaries. Bitcoin is the most widespread and the first cryptocurrency worldwide.
Bitcoin mining requires a significant investment in infrastructure and utility bills. Therefore, many people cannot afford to mine Bitcoin. Nonetheless, platforms like originstamp timestamping allow people to buy and sell bitcoin online. With such a platform, you exchange fiat money for bitcoin. This way you don’t have to struggle to find a buyer for your bitcoin if you decide to get rid of the cryptocurrency.
Bitcoin Investing Benefits
Bitcoin has high volatility which creates an investment opportunity. Ideally, you can buy and hold this cryptocurrency in the hope that its value will increase. This allows you to buy low and then sell high to make a profit.
Additionally, the lack of Bitcoin regulation and the limited supply of this digital currency means that its price will most likely continue to rise. Unlike fiat money, no government or agency can regulate the value of bitcoin to avoid investment risks like inflation.
Bitcoin depends on an innovative infrastructure that holds a lot of potential for different sectors. Blockchain technology is an innovation that several fintech developers want to adapt and use for different purposes. As such, Bitcoin will most likely continue to grow and expand its usage as more people embrace this technology.
Bitcoin Investing Risks
Most speculators want to capitalize on the short-term momentum in bitcoin price rather than focus on the long-term, daily use of bitcoin. And these are driving the rise in the price of this cryptocurrency. As a result, some merchants who had started accepting Bitcoin payments suspended doing so due to this volatility.
Another disadvantage of bitcoin investing is the lack of a regulatory body. Without regulatory oversight, acquiring bitcoin on a secondary market becomes an opaque experience. This is because there is no transaction time for buying and selling this cryptocurrency.
Additionally, Bitcoin has a limited transaction capacity. The limited maximum transaction volume means that this cryptocurrency will have a hard time dominating the other payment methods.
Some of the things that make bitcoin investing worthwhile are its increasing popularity and acceptance. This cryptocurrency uses innovative technology that gives it a competitive edge over fiat currency. Nevertheless, this investment has some disadvantages, such as the low transaction volume. Take the time to research this digital currency before deciding to invest in it.
