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Is Bitcoin Worth the Hype?

5 min read


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Bitcoin has been getting a little bit of buzz lately. It has been on the headlines due to various reasons from time to time. Regardless, if you have not gotten on board with Bitcoin, you probably have heard about this cryptocurrency. Maybe you heard or even read how Elon Musk, the CEO of Tesla Inc., invested in Bitcoin. You may have also heard about Bret Lee donating a Bitcoin to help India fight the pandemic facing at the moment. All in all, some may have been convinced by all this and decided to invest in Bitcoin, while others may not have been fully convinced of the importance of getting on board with the cryptocurrency. Well, stick around to determine whether Bitcoin is worth the hype and whether it is the right investment platform for you. Let us look at the various pros and cons of investing in Bitcoin.

Pros

It is Widely Accepted

Most governments and people are now accepting the use of Bitcoin as a new payment method and as a platform for investments. A majority of these governments do not find any harm in Bitcoin; hence they are allowing people to use it. Investing with Bitcoin allows you to buy or sell virtually any physical asset. Soon Bitcoin may end up replacing cash as a mode of payment.

Lower Transaction Fees

Unlike other modes of payment, such as PayPal credit and debit cards, the cost of transacting with Bitcoin is much lower than these other payment methods. On most occasions, Bitcoin transactions are always lower than 1% of their value. Isn’t that amazing? To top it up, Bitcoin transactions worldwide are no different from Bitcoin transactions that stay in the country, unlike credit card payments, where they have international transaction fees.

Proof of Liquidity

Bitcoin has greater liquidity than its peers; hence it allows its users to keep most of its inbuilt value, especially during conversions of fiat money. You can use Bitcoin to trade for cash or other assets such as gold at lower fees. For those looking for a short-term profit, investing in Bitcoin can be advantageous to you due to its high liquidity.

Privacy and Anonymity

Bitcoin has an inbuilt privacy protection policy that gives its users an option to separate their Bitcoin accounts from their public personas. You can track Bitcoin flows between its users, but you can never track or figure out who these Bitcoin users are. Bitcoin protects users from sophisticated attacks from hackers.

Cons

Volatility

The prices of Bitcoin keep on changing from time to time. You have probably read of this as well. The bitcoin market keeps changing; for instance, two weeks earlier, the prices of Bitcoin had fallen tremendously, and as of today, the prices are gradually increasing. You cannot predict Bitcoin prices, which may affect your investment if you were hoping for a good return. To avoid this, you should keep an eye on the Bitcoin market regularly.

Bitcoin Wallets can Get Lost.

A Bitcoin wallet is a type of wallet in which Bitcoins are stored. Due to a virus corrupting your wallet file or your hard drive crashing, you may be highly vulnerable to losing your Bitcoin. Such malware can cause a negative impact as you are highly likely to go from a wealthy person on Bitcoin to a bankrupt person in seconds. Often ensuring the gadgets you are using for Bitcoin investments are virus-free is very important. That might save you all these troubles.

Finishing Up!

Bitcoin is definitely worth the hype. The advantages of investing in Bitcoin are outweighing its disadvantages. So, next time you hear people talking about making money with Bitcoin, know that they may not be joking. Do not be left out either.