Each investment should be seen in the light of demand and supply. The balance between supply and demand describes the value of each investment. Aside from that, it also describes the risk since the mechanisms of demand may be more or less hypothetical.
The maximum supply is fixed theoretically. There is a limit of Bitcoin that could be mined. Yet, there’s no assurance that when people reach the maximum 21 million limit, the protocol of Bitcoin will not be altered to enable further mining. Bitcoin, assuming it isn’t, becomes a fascinating possible reserve for value because it is unregulated and finite.
The unregulated nature and the theoretical fixed supply are the two most significant features of Bitcoin. The unregulated nature enticed a lot of attention from illegal doings wanting desperately to look for a theoretical reserve of value, where they could save their money and safely and easily move it around.
The undetectable facet of Bitcoin carried crime right into the finance world of the 21st century. There are other individuals interested in Bitcoins like people attempting to stay off-grid and libertarians. But, a lot of experts believe that financial crime has been the largest driver for the adoption and growth of the coin.
The cryptocurrency became attractive for mainstream finance because of its natural demand. Predictably, a lot of financial companies during the last several years have tried unsuccessfully to make ETFs for cryptocurrencies, such as Bitcoin. Eventually, this has been avoided via the development of a Bitcoin futures marketplace.
Today, official investors could gain access to the cryptocurrency. Fortunately, retail investors have already a lot of exchange applications where they could trade Bitcoin. Safe and easy transactions could be done with the help of trading software robots such as Bitcoin Loophole.
So, is it really safe?
Every transaction that a person makes using Bitcoin are irreversible and public. There is no way a person could mathematically make errors in recording the balances of accounts or make fake transactions.
Aside from that, a transparent transaction ledger also lowers the risk of money laundering and scam.
A person does not need to attach confidential details or personal information whenever they are using a Bitcoin Wallet or making a Bitcoin transaction.
A person is at less risk of identity theft since their personal details are not attached to the transactions or the wallet. A theft would only have access to the funds and not your personal data whenever he or she gets a hold of the private key of your wallet.
Now that you know how safe Bitcoin is, it is time for you to know the risk associated with it.
The volatility of the price is the biggest threat to investing in Bitcoin, it is not the network. However, the price should stabilize now that more and more individuals start to utilize Bitcoin and other cryptocurrency technologies.
Your money is as safe as when using other financial institutes with correct storage practices and proper education to keep your Bitcoin secured.
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