Over the last ten years, it gradually became impossible to go through financial news and still remain unaware of the havoc Bitcoin has been rising in the market. It’ll be a long time until it’s proven whether Bitcoin will be an excellent investment opportunity or not, because according to experts, Bitcoin is here to stay. And even if it doesn’t, in a recent survey it has been seen that another 160 plus such cryptocurrencies are already there in the market, having the full potential to take over, Any day disadvantages / limitations of bitcoin can ceases to exist.
In late 2008, a person with the namesake of Satoshi Nakamoto brought Bitcoin into the world and the biggest question in everyone’s mind was whether it would provide security to accounts, balances and transactions without any central body being involved (read banks). But thanks to the blockchain system it has been very easy to do create encrypted records that don’t need to be seen by any authoritative party except for the one who is buying or trading bitcoins.
- 1 Is Investing in Bitcoin a Gamble?
- 2 The Risks, Broadly, are Well Known
- 3 Cons, Disadvantages, Limitations of Bitcoin
- 4 Conclusion
Is Investing in Bitcoin a Gamble?
Bitcoin is the oldest and the most popular cryptocurrency to ever exist. It had played the primary role of establishing the niche-like ecosystem of Blockchain, a peer-to-peer crypto network. Bitcoin, with constant growth, managed a great number of investors who believed in this particular medium. The future of it, as a replacement to traditional currency bills, started to become clearer. But still, what remains a fact is that investing in Bitcoin comes down to your hunger for the thrill.
The Risks, Broadly, are Well Known
- There’s always a possibility of a sudden drop in the price of Bitcoin
- There can be instances of online hacking
- A crashed hard drive means permanent loss of data.
Investing in Bitcoin means a lot of research and the entire process is volatile due to the nature of the currency. However, it is said that those who had invested even the bare minimum, in its initial years, have earned back in millions now. If you want to invest in Bitcoin, you have to open a wallet account with Crypto Genius thorough deposit funds, thorough begin trading. To begin with, it is as simple as that.
Cons, Disadvantages, Limitations of Bitcoin
There are many android games which pay rewards in bitcoin as well. It might turn out to be true that Bitcoin becomes the future of monetary exchange, but that does not mean it’s free of limitations. Here are some limitations to bitcoin investing:
The Fluctuating Nature of Bitcoin Value
Bitcoin has an unpredictable market. If the price of Bitcoin goes at $44,000 today, in a week or two it can stoop down to as low as $5,000. Keeping a close watch on the crypto market constantly is necessary to avoid losses. Moreover, there is no minimum valuation in Bitcoin.
Bitcoins Have No Physical Form
There is no universal system yet that helps people to spend Bitcoin in physical stores. Since Bitcoin does not have any physical form, it always has to be converted to other currencies.
Unknown Technical Flaws and the Threat of Hacking
The Bitcoin system is a fairly new network and it might have many unexploited flaws. Let us suppose that at a time when Bitcoin is globally adopted, a flaw is found. The exploiter could gather immense wealth at the cost of the entire Bitcoin economy. The same goes for hacking, as mobile apps and websites are very much susceptible to online theft. Remember that Bitcoin exchanges are not even FDIC-insured.
Bitcoins Have Limited Reach
Bitcoin transactions can only be completed if you are trading online as currently, in the global scene, there are only a few online merchants accepting Bitcoin. Many companies yet do not identify Bitcoin as a valid currency.
Government Regulation Issues
The Bitcoin market is a decentralized structure, off the grid of the government. Most governments don’t even tax on Bitcoin and have no firm stand regarding it. So you never know when you are exposed to any fraud whatsoever.
A Sudden Loss of Data can Never be Helped
If there is a case of a corrupt hard drive or an HDD crash, you lose all your data. Data ‘lost’ can never be recovered again. The coins in that case are forever orphaned.
There are always two sides to a coin, so go through every detail before you invest in Crypto-trade. In contrast to the many pros of Bitcoin, these were some of the major limitations. Are you thinking about buying bitcoins? Make sure you do thorough research about the forces that drive the market before you jump into the business of cryptocurrency. Just as any other currency, Bitcoins also have certain limitations and it is important to be aware of them along with their benefits.
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?