If you are here, then you have certainly heard of bitcoin. It has been one of the largest regular news headlines over the past year or so as a means to get rich quick, the inception of genuine international currency, a revolution in technology or even the end of finance. But what exactly is it and should you consider bitcoin investment?
In simple terms, bitcoin was the first decentralized system of money utilized for online transactions. It was invented by an unknown creator in 2008 who goes by the pseudonym ‘Satoshi Nakamoto’. This was just after the recession and the idea was to give the public control over their funds by distributing balances and checks across the world instead of on the ledger of banks, private corporations and governments. This made it an interesting topic and the cryptocurrency has seen tremendous growth since its inception. So, is it a good idea to invest in this digital asset? In this read were going to see the reasons to embrace and reasons to avoid bitcoin investments.
Why Invest in Bitcoin?
It is Low Cost
The exchange fees when dealing with bitcoin are minimal, usually 0.2% of the value of a transaction. That is pretty low compared to the 3% that typical banks charge when you use a credit card to purchase something in foreign currency. If you wish to speculate in currency, this cryptocurrency provides a cost-efficient means to do it.
It is Easy and Fast
Investing in Bitcoin hoping that its value will increase in the future is as simple as purchasing the cryptocurrency on online exchanges. The transactions are also fast, making it possible to send money across the globe in just under an hour, compared to the 3 days it takes using western union. Bitcoins transactions are subject to very few regulatory oversights and this makes transactions super fast and stress-free.
Why You Should Not Invest in Bitcoin
Regardless of the cryptocurrency ’s exponential growth in popularity over the past few years, it isn’t immune to design issues. For instance, starting in late 2017, the transaction speeds started to slow down due to a scaling problem related to the manner in which the digital asset blockchain operates. That problem did not end up creating an alarming crisis as some predicted and it has been solved through something known as SegWit. However, the scaling problem should be a reminder that a new and unforeseen issue might come in the future.
Bitcoin is not the only blockchain-based digital asset in the industry. There is another popular cryptocurrency known as Ethereum. In fact, the popularity of bitcoin has led to the creation of hundreds if not thousands of new cryptocurrencies and while most of them may never rise to the level bitcoin has, there are still a number that show promise in solving some of the biggest problems we have in certain industries today. That means there’s no guarantee that bitcoin will enjoy a marketing leading position forever and so, you should be frugal when deciding to invest in it.