Why Should Anyone Invest in Bitcoins or Cryptocurrency?

 With the discovery of Cryptocurrency in 2008, a new era dawned in the investment market. Initially,

slow and not very popular, digital currencies have taken time to grow. We have seen significant

growth in the values of Cryptocurrencies . Bitcoin and Eutherium are the most well-known

Cryptocurrencies , however, there is a whole spectrum of currencies that have shown a spike in their

values under the influence of Bitcoin and Etherium. The values and the range of Cryptocurrencies

continue to expand every day.

As compared to the Initial Coin Offerings, today, the market offers a lot of choices. With the more

evolved blockchain investment products and policies, spanning across decentralization of finance to

the non-fundable token, the investment Gurus in the market predict these investments in

Cryptocurrencies to soared all the higher and give way to a new variety of digital currency pockets.

However, people are still not very confident about Cryptocurrency investment. Owing to both the

volatility in the markets, some feel that all their money will go down the drain. Others, who have

been investing, since its inception, have an undeterred faith in its rising value.

Through this article, we wish to explore, discuss and analyze the pros and cons of investing in

Cryptocurrencies :

Why should you think of investing in Cryptocurrency

 Cryptocurrencies like Bitcoin, with their blockchain model, have revolutionized the

operations of many industries.

 Since Bitcoins or any other Cryptocurrency is intangible, they are an excellent long-term and

safe store of value.

 However, subjected to extreme speculation, there is no promise of Cryptocurrencies coming

out for mainstream usage.

 A fully tight, secure, environment needs to be ensured for all transactions or exchanges of

Bitcoins and Cryptocurrencies .

How right is it to call Cryptocurrency a Transformational technology?

The new investment model of blockchain technology on which Bitcoin and other Cryptocurrencies

have been developed has proved to have a revolutionizing effect in the investment market. They

have changed the face of many services industries like shipping, healthcare, banking, etc. The best

part about this model is that it does not involve any intermediate person to facilitate any action. It is

a complete mechanical model of operation, in which all activities are done by computers. As a

consequence, many new types of activities can now be explored fruitfully.

Cryptocurrencies open up a lot of new possibilities. It is this ability of Cryptocurrencies , which

instills the faith of investors, who have full faith in the future of digital currencies. For such people,

investment in digital currencies is going to mean a higher return of investment, at the same time

welcoming new changes in technology that will be more adaptive and supportive in the times to

come.

A Stable, Long-term Store of Value

Cryptocurrencies are like long-term digital lockers for values. They are reliable, long-term, and very

apt for people who plan high returns on long-term investments. Unlike fiat currency, most

Cryptocurrencies have a finite supply that is capped by mathematical algorithms. It is this capping,

which makes the dilution of its value impossible, through inflation by any government agency. Also,

the other advantage is that since these are cryptic, no government body can impose any kind of tax

or confiscate the token without the prior consent fort the owner.

This feature is very useful for investors, who are always very skeptical and over-hyper about the

events like bank failures or market crashes, or super inflation in the market. Bitcoin, in particular,

gained popularity due to its imperviousness to inflation and censorship-resistant properties. That is

why Bitcoin is also called – digital gold!

Potential vs. Speculation

With changing times, the mindset of the people has also changed, considerably. While some believe

that digital currencies should be treated as a normal part of our lives, others are still going by

speculation. Studies of blockchain transactions have revealed that exchange trades are the most

popular uses of Cryptocurrencies . These account for more economic activities than the ordinary

activities of sale and purchase. Swing out this huge war between potential and speculation over

Cryptocurrencies , the Cryptocurrency skeptics, including Warren Buffett, Bill Gates, and JPMorgan

CEO Jamie Dimon have all warned of a potential crypto bubble.

Cryptocurrencies are not new to such volatile speculations or irrational responses in the market.

The other assets like technology stocks, cannabis stocks, precious metals, and even real estate have

also been a part of market bubbles, where the investors suffered.

No doubt, compared to others in the market, Cryptocurrency is a new technology. Hence, some

amount of speculation is unavoidable. More so, since blockchain technology is still growing.

However, new investors should be a little careful and prevent from falling into investment traps like

herd instinct, Fear of Missing Out, or the greater Fool Fallacy, to avoid ending up losing everything

like a fool. Calculated risks can be taken however taken up!

Losses

Cryptocurrencies also have cons alongwith their pros. They are also a liability. Since there is no

intermediary involved, hence the whole and sole responsibility of the keys falls on the owner, which

is the controller of the blockchain address. Investors who are planning to explore the digital currency

market should make sure that they have an absolutely safe and secure digital environment, which

will prevent the hackers from siphoning the money or just vanish with it with their hacks and tricks.

Theft is one of the most rampant disadvantages of Cryptocurrency holders. Hackers have just

evaporated, in thin air, with billions of dollars from exchanges, digital wallets, and other online

platforms. Also, there are several schemes offered, to lure investors with Coupons, discounts to

engage the investors through doubling scams, social engineering, market manipulation, and even

fake ICOs.

The other major threat is the investors are the users themselves. Unlike the other applications, most

of the digital wallets are not programmed to be reset, in case you forget the credentials.

Unbelievably, most of the users have lost a whole lot of their earnings due to forgotten ids,

passwords, or lost devices.

The last issue is, delinking a lost device! Nowadays, changing your device is very common. Also,

everything being at hand, the majority of the applications work on mobile phones. Due to robberies

and thefts, when these devices get stolen, people usually forget to delink their accounts with the lost

devices. As a result, the data is still accessible to the hackers, and this too leads to loss of earnings

from the exchanges and wallets. Hence, investors should remember to delink their device in case it is

lost, stolen or changed!

Conclusion

Well, to conclude, yes there are several reasons to speculate and be very skeptical about investing in

digital lockers and Cryptocurrencies , however, there is a general shift with many traditional

investors now opting to invest in Cryptocurrencies . Many people are willing to take risks in the

blockchain space. The blockchain model is transforming the industries and their working into

smoother and better performance-oriented ones! Hence, it is not wrong to say that Bitcoins and

other Crptocurrencies have the same potential to take the world by storm, as the internet did back

in the 90s.

However, the believers and investors in Cryptocurrencies such as Bitcoin, Etherium, and the whole

spectrum, should be aware and understand the consequences, risks of investing, before they start

investing. They should start out slow, ensuring full safety, and scrutinize each and every aspect of

the investment with a complete understanding of the most common mistakes that the new investors

land up in, losing their money!