Bitcoin is a hot topic in the media all the time. It is a decentralized digital currency ruling the world of cryptocurrencies and is also a significant threat to traditional currencies. You need to know the bitcoin network works on blockchain technology, a public ledger that is resistant to hacks and frauds. The most inspiring thing about bitcoin is that it operates without centralized administration. Moreover, the transactions of this cryptocurrency take place between the two users.
Everyone knows that the value of bitcoin has been increasing right from its invention. There are several stores and online sites that are accepting this crypto. The bitcoin investment is also increasing significantly. A website like this www.thecryptopunks.com provides the facility of bitcoin exchange to its users to buy and sell this digital currency.
Why invest in bitcoin?
- One of the biggest reasons for choosing bitcoin is that it is resistant to payment fraud. It is because Bitcoin uses cryptographic protocols that are not possible to forge. So, investing in this crypto can prove to be advantageous for you.
- Bitcoin is anonymous. There is no requirement of personal details for making the transactions or investing in bitcoin. It is a great feature that helps in preventing the identity theft. You might have heard that the credit cards make use of the pull mechanism in which you have to submit some credentials for making the payments, and then it pulls out that much amount from your bank account. On the other hand, bitcoin uses the push mechanism to make the payment, and you can direct any sum to the receiver.
- The immediate settlement of the transaction is also a great feature of bitcoin. It doesn’t involve any third party, which means you need not have to wait for long for the transaction settlement. Furthermore, once the transaction is initiated, no one can put a hold on it.
- Bitcoin is incredibly liquid. Therefore, when it comes to converting the bitcoin into fiat currency; then it retains most of its value. Moreover, this process is rapid and convenient.
- It is the easiest method of initiating international transactions. In addition to it, bitcoin also doesn’t charge your additional fees, and the transaction is settled instantly.
- The security of bitcoin is high. Even the potential hackers cannot crack the security of the bitcoins. Moreover, bitcoin transactions are done on the blockchain network, which is entirely hackproof.
Why not invest in bitcoin?
- The one thing that you should know before investing in bitcoin is that it is technically challenging. An ordinary citizen will find it very difficult to understand this digital currency. Moreover, there is a rise in fake bitcoin websites that sell this digital currency and steal people’s money.
- Bitcoin is very famous in the black market. We all know that bitcoin has complete anonymous functionality, so this currency is often used for hacking, drug dealing and buying black market arms. There is no authority of the government over bitcoin, which makes it hard for the government to stop the black market activities related to bitcoin.
- The price volatility of bitcoin is horrible. Sometimes the price of this crypto increases so speedily, and at the next moment, it falls even faster. The volatile nature of bitcoin makes it a risky investment, so people fear investing in this cryptocurrency. To invest in bitcoin, then there are chances you can lose all of it.
- Once the bitcoin payment is made, then there is no way it can refund. There is no intermediator, and the transaction occurs directly between the two parties. It means that if you make an improper payment, then there is no way of getting your funds back.
The ending lines!
There are a lot of websites and stores which are accepting bitcoin. So this cryptocurrency has the capability of becoming the most used digital currency. But the thing is that there is no guarantee that this decentralized digital currency will ever become a legal alternative for the fiat currency. So if you invest in bitcoin, you should take your decision after having enough knowledge about this crypto.