The Great Bitcoin Debate: Is Bitcoin A Safe Investment?
June 24, 2022

The Great Bitcoin Debate: Is Bitcoin A Safe Investment?

Bitcoin is the most interesting topic for social media users and also for experts now. It is a new asset for investment that only came in 2009, 13 years back. Its technology is undoubtedly wonderful, but as a new asset, Purchase Bitcoin are practical things about it.

Experts are even trying to understand and reveal the various aspects of bitcoin technology. Irrespective of bitcoin’s massive price gain and giving a high return on investment, experts are on their work to know if the digital currency is safe for investment or not. There are always opposite opinions in among them. In this writing, we will discuss from both the viewpoints of experts.

  • Volatility: Volatility is the main and vital feature of bitcoin. Bitcoin’s price is always fluctuating. So, it has a direct impact on investment. But, different investors take it in different ways.
  • High return: in some of the experts’ opinion volatility of bitcoin is the tool that is responsible for high return. Even most investors prefer to trade in the short term on the volatile market. The thing is that the more the price fluctuates, there are more chances to gain multiple profits. On the other hand, for volatility, bitcoin’s price can increase massively in the long run, as we saw in 2021. So, for long-term investment, too, volatility can give you profit.
  • Large loss: But, in opposition, investors also say that volatility is the cause of great loss. It is the main factor of risk. And, it can’t be deniable too. Suppose you have invested a good amount in bitcoin, and the price drops suddenly. You will lose all your money in a second. But, to master investment in a volatile field, you need study and practice.
  • Liquidity: Liquidity is the factor that tells you about the availability and demand of the asset. There is also a debate on it by the investors.
  • High liquidity: Bitcoin is a very liquid asset. Its market capitalization is almost half of the entire crypto market cap. It is also available on all the trading platforms and the is the one where most the investors trade bitcoin through. This platform gives you all the information and assistance on crypto trading, thus making it easy for you to trade hassle-free. As a highly liquid asset, bitcoin is demanded, and investors also suggest investing in it.
  • Demand will decrease: Some investors think that the liquidity of bitcoin is not enough that can hold people’s interest in it. Bitcoin supply is limited to 21 million, among which nearly 19 million are there already. The supply will end in 2140. So, though the demand is high today and has a chance too to increase for a short time, it will decrease after people realize its shortage.
  • Security: Security is a great concern in investment as you deal with your hard-earned money.
  • Protected network: As per some experts, bitcoin investment is secure, and the bitcoin network is also secured by cryptographic encryption. Over that, cold storage wallets are there to protect your bitcoin holdings.
  • Cyber scam: But, some experts are really concerned about it, and it is actually not bad. They are not 100% sure that the bitcoin network and investment platforms can’t be hacked.
  • Decentralization: The decentralization feature of bitcoin is supposed to thing as the greatest innovation.
  • High-speed transaction: Most experts think that decentralization makes transactions faster than before and allows direct user-to-user fund transfers, which will help increase people’s convenience.
  • Need some regulations: Some are thinking that decentralization can be a good nature of a technology to perform cybercrimes. So, it needs some sort of centralized regulations.
  • Future: Future price of bitcoin plays a great role in investment.
  • Increasing price: Some experts think that bitcoin will go high in the future. The financial experts believe that there is going to be a massive shift in Bitcoin’s price,which can rise up to $100,000 in the near future. They are also comparing it to a hedging asset like gold.
  • It may decrease: Bu, on the other hand, some experts are saying that bitcoin’s price can be reduced to $10,000 in the future.

Conclusion

Debate on bitcoin’s benefits and flaws in its investment will be continued as long as the network of bitcoin remains. However, investing in bitcoin must be done carefully in any way.

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