Given the amount of information that circulates on the internet, you may have stumbled upon this: Is Bitcoin good or bad?
To know for sure which of the two positions is valid (or if both) we will review the most famous of the cryptocurrencies, its characteristics, capitalization and volatility.
Then we’ll take a quick look at the good, bad, and unknown of Bitcoin so you can decide whether or not it is the right investment for you. Keep reading.
Bitcoin: not so good, not so bad
To understand if Bitcoin is good or bad, it is important to know that it is a cryptocurrency that circulates through different networks and with it you can pay for goods and services, with some exceptions, without government regulation.
Private and decentralized, this crypto can be acquired without requirements and transferred between people who own digital wallets, while on some platforms it can be traded at very low commissions.
Created in 2009 by Satoshi Nakamoto, today it is the most famous of the cryptocurrencies with a high market capitalization and a price that, as of October 2021, was around $60,000. Already in 2020, its price shot up by more than 300%.
Its fame is due, to a large extent, to the adoption of it by large corporations and technology and financial companies.
However, many investors are skeptical of its volatility and consider it an impractical route.
Bitcoin has something that attracts
The BTC is becoming so common that many companies and brands like Fintech, PayPal, Box, The Motley Fool, among others, have invested in this crypto and also allow users to buy and sell through their applications.
Also, BlackRock recently added bitcoin futures to two of its mutual funds and the renowned bank JP Morgan is open to the idea of investing in Bitcoin.
Additionally, electric car maker Tesla recently bought $1.5 billion worth of Bitcoin and said (though it later backtracked) that it would start accepting cryptocurrency as payment.
Some investors believe that Bitcoin is a viable store of value, which undoubtedly has something to attract. And since a small amount of Bitcoin can be mined, some investors consider it a digital version of gold.
What’s so good about Bitcoin?
- It is a democratized and decentralized crypto, not controlled by any government leader.
- Fast transactions and low costs in your operations.
- It does not recognize sovereign borders and, therefore, does not require conversion taxes.
- Too willing and able for this global digital world.
- She sees no obstacles to account establishment, capital movement, and other challenges.
- It is a cryptocurrency with liquidity, a large number of exchanges and online brokerages.
- Lower risk of inflation.
- Minimalist Trading – Bitcoins are simply bought or sold on exchanges and placed in a wallet.
What’s wrong with Bitcoin?
- The price of bitcoin is always very volatile, it can rise or fall drastically from one moment to the next.
- Both its emission (mining) and its circulation do not have any control by a government or central bank.
- It is not a universally accepted payment method.
- With little or no regulation, your transactions may be exposed to fraud.
- Risk of hacking attacks.
- If you lose the keys to the wallets where you keep your bitcoins, there is no way you can get your investment back.
Caution: key to investing in bitcoins
In everything related to Bitcoin, as well as other cryptocurrencies, it is important to be informed: a minimum technical and financial knowledge is necessary to understand what this crypto is based on and what its risks are.
So, if you want to invest in Bitcoin safely, you must know what is good or bad and consult with those who know the most before making a decision.
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