Rewinding the clocks back to the year 2009, when Satoshi Nakamoto introduced a technology that securely transferred Peer-to-Peer currency with reduced risks of double-spending. This technology became famous and came to be known as the Blockchain technology and the currency came to be know as Bitcoin. Although the actual process that entails this entire P2P transaction is nonetheless effortless, but the bottom line is the security – which has met with a lot of speculations lately.
Now before we jump towards discussing if investing in bitcoin is secure or not, let’s look into what it actually is. People are skeptical about investing in Bitcoin and thus, we must find out what makes them think that way:
What is Bitcoin?
Bitcoin is a cryptocurrency that is developed, distributed and traded with Blockchain technology. The individuals that participate in this bitcoin activity are known as miners. Bitcoin is convenient for businesses that have to make digital transactions regularly. However, the only downside? You will be sending money to someone you don’t know. In short, Bitcoin allows money transactions without being associated with a real identity. Thus, the chances of mistakenly performing a transaction with a hacker are always high.
Is Bitcoin Investment a ‘Risky’ Decision?
The idea of investing in Bitcoins is something that many find as a hidden goldmine. Especially after what happened with the famous rapper, 50 Cent. Don’t know that story? Allow us to enlighten you. In 2014, 50 cent decided to sell his album Animal Ambition online, by accepting only bitcoins as currency. He then left his account unattended till 2018, only to discover that he accidentally ended up making $8 billion. Talk about happy accidents!
If you are assuming that investing in bitcoin will lead you in a similar situation, then, we apologize for bursting your bubble, because not all accidents are happy accidents. Bitcoin investment is packed with risks that are often ignored. So, here are a few of them:
- Bitcoins are hyped and what-not? But seriously, what would you do if this technology went outdated? Of course, everybody is seeing investing in bitcoins as an opportunity and therefore, investing in it isn’t seeming like a bad idea after all. However, all the technologies that have been introduced, have always seen a decline. So, before you invest in bitcoin, just don’t forget to find a stable Wi-Fi connection and do your homework. It’s better to be safe than being sorry, right?
- Another risk that tarnishes bitcoin’s reputation is the constant variability in the prices. Sometimes they are priced at a high, and sometimes, these costs are disappointingly low. Thus, if you are considering to invest in bitcoins, then you must keep yourself ready to experience such fluctuations in the prices.
- How can you tell if the person you’re making a deal with online, is not a fraud? When you’re investing in bitcoin, you ultimately become exposed to fraudulent parties that trick bitcoin users and manipulate them. These fraud-folks might portray themselves as an investor. These ‘investors’ are notorious for painting a false picture of you getting huge profits, and the next thing you know – all your bitcoins are gone and the guy who promised you of profits, is nowhere in sight.
- Lastly, the risk that outshines all the other risks – The risk of theft. Sometimes, bitcoin users lose access to their accounts. While sometimes, they end up revealing their account details to someone they shouldn’t be trusting. Whatever the situation might be, the risk of losing bitcoin due to negligence or theft is unimaginably high.
If I was to bring you down to a conclusion, I would only state that investing in bitcoin is akin to throwing your money in a dark pit that leads to nowhere. The risks of investing in bitcoin are extremely high. If you’ve been considering to invest in bitcoin, then get in touch with the Blockchain Technology-folks and get the apt info about what you’re planning to get into. Get a good grip over how this currency works and how you can remain consistent in terms of only reaping the benefits, instead of facing any other consequences.