Bitcoin or Cryptocurrencies are becoming popular with each passing day. With lots of ups and downs, the uneven swings Bitcoin market is now a little stable. 2020 was really full of swings for Bitcoin with breaking old records and making new ones. By the end of 2020, the www.btc-gemini.com starts seeing a rapid rise in Bitcoin price value. But again, the unpredictable market graph is showing some other results. A question is there with all these factors, that “Is it really a safe bet in 2021?”
Here are the positives that Bitcoin offers us and will continue to offer in 2021.
As the number of available Bitcoin is fixed to 21 million, there is no chance of circulating more Bitcoin in the Crypto market. It makes sure that there are cases of inflation with Bitcoin, which enables a more stable economic system than traditional fiat currencies.
When you are considering the most liquid investment assets, you simply can not miss Bitcoin from including in the list. You will find several trading platforms along with online brokers and exchanges throughout the globe.
For stock trading, having a certificate or license is a must. You also have to go through a broker in order to trade any company’s stake. The conditions are much simpler for Bitcoins. You simply can buy Bitcoins from exchanges and hold them in your Bitcoin wallet and sell them whenever you want to. It is also faster.
Bitcoin, along with other Cryptocurrency trading, is relatively new. On a regular basis, new coins are occupying the Crypto market. This very newness of the Cryptocurrency market invites volatility and unpredictable swings.
Every coin has two sides. Sling with the benefits, Bitcoin also has several drawbacks. Here are the positives that Bitcoin has for us and will continue to pursue in 2021.
The absolute nature of Bitcoin is its volatility. Bitcoin trading is all about the sudden rise and sudden huge fall. With this uncertain market, you won’t be able to get a good return if you do not keep a close eye on the market.
For any Bitcoin investor, there is another threat that can haunt an investor day and night. The chances of hacking. All Digital currencies are prone to online hacking and cybercrime. The exchanges from where you buy your Bitcoins are not insured by the FDIC also.
The Bitcoin market has no major regulations till now. Bitcoin or any of the Cryptocurrencies are not taxed, and the government has no clear rules and regulations for this. So, your money is exposed to fraud and malpractices that can occur at any time.
There are very few online merchants who accept payments through Bitcoins. Many companies do not consider cryptocurrency as a legitimate payment gateway.
All your Bitcoins are stored in your digital wallet. That can either be an offline or an online wallet. In case your hard drive crashes or a virus corrupts, all your money will be gone. Your online wallets are open to hackers. If you lost or forget your private key you will go bankrupt from being a wealthy person.
Price volatility is not the actual reason for worrying while investing in Bitcoin. Rather, the decentralized system is riskier. Bitcoin does not fall under government restrictions. So, dealing with Bitcoin invites more risks than government currencies and other asset classes.
In case you want to dive into the Bitcoin market, consider it as your high-risk and high-reward portfolio as well. You can earn a huge profit in lesser time, but if the price drop, you lose a huge amount also. Even the futurists are not able to state any surety about its future. While investing in Bitcoin, remember the philosophy, “Buyer Beware.”