Home Business Insights & Advice Top reasons for and against Bitcoin

Top reasons for and against Bitcoin

by Sarah Dunsby
2nd Aug 18 7:24 am

Since the spring, the value of Bitcoin has increased after several months of decline, prompting more people to get into the market. For starters, Bitcoin is a cryptocurrency that is based on blockchain networks. It is global, anonymous, and decentralized.

One of the most commonly discussed benefits of Bitcoin is that governments, banks, and other financial institutions cannot freeze Bitcoin accounts. They are also unable to interrupt user transactions. Its system is essentially person-to-person. Accumulating digital coins and trading them are made easy with the help of trading software such as Bitcoin Trader which allows for a secure, safe, and reliable transaction.

So, is it time for you to invest in Bitcoin?

Why you should invest?

Instability

Political turmoil isn’t generally great for the stock market because its value is secured to recognized firms on a dependable workforce, stable financial institutions, government services, etc. On the other hand, this proves beneficial for Bitcoin because it is resistant to political turmoil since it isn’t a currency that’s backed by the government.

There is proof that recent turmoil in Asia caused the price of Bitcoin to surge. A person may find Bitcoin to be a great investment if they think the future holds more uncertainty for traditional banks and governments.

Simplicity

To make things simple, Bitcoin transactions are subject to several governing oversights. This makes transactions headache-free and fast. Improvements in the network have also made transactions faster than ever. The Lightning Network, for example, is specifically designed to speed up transactions and cut down fees.

Affordability

The fees for Bitcoin exchange are small – typically on the order of 0.3% of the transaction’s value. For comparison, the banks in the United States typically charge around 3% fees whenever a person utilizes a credit card to purchase something outside the country. Bitcoin provides a cheap way to do it if a person wants to gamble on currency.

Why you should explore other coins?

Design Issues

Despite the immense rise in fame of Bitcoin over the past few years, it isn’t invulnerable to design issues. For instance, the transaction speeds of Bitcoin became slow due to the ascending issue associated with the way the Bitcoin blockchain works.

That problem didn’t wind up making the existential crisis for Bitcoin that several experts claim, and the issue has now been solved through something called SegWit. Yet, the scaling problem of Bitcoin was a reminder that a new kind of severe issue might creep up in the future that may destroy Bitcoin.

Competition

Bitcoin isn’t the only cryptocurrency in the world. Ethereum is another well-known choice, and there are a lot of other options. Today, Bitcoin is the leading cryptocurrency in the market, maybe because it’s the first ever cryptocurrency. However, there’s no assurance that it would enjoy that number one position forever.

More investors

The sudden growth of Bitcoin’s value over the previous years attracted a lot of people. Today, a lot more individuals are investing in and paying close attention to Bitcoin. The passing of concerns about the harmful effects of Bitcoin, the resolution of the Bitcoin scaling problem, and stricter government regulations have brought a lot of attention to this cryptocurrency.

The cryptocurrency industry is a risky one. People may lose money or gain wealth. However, if you know how to play the game properly, you can greatly benefit from this new form of currency and enjoy the many benefits that traditional money cannot offer.

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