Bitcoins have their own set of pros and cons; however, some things make you think twice before buying a bitcoin, which sometimes even make you overlook its advantages. Hence, weigh all the pros and cons, and then start investing your hard-earned money in bitcoins.

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Bitcoin is undoubtedly the most popular and the most valuable cryptocurrency, which only seems to increase in price and popularity with time. On the one hand, where investing in it might seem like a great option as the prices are rapidly growing, simultaneously, on the other hand, it is also considered a terrible investment one can make.

Now you may ask Why? Well, here are five reasons that might make you reconsider your decision of investing in bitcoin.

It’s Risky, and the growth is Unpredictable:

When it comes to the prices and the technological components, bitcoins can be highly risky. The cost of bitcoins fluctuates and changes drastically, and there is no way anyone can predict how much it might cost the next day. These price fluctuations might make bitcoin acceptable in terms of long-term investment; however, it only adds to the short-term risk. Moreover, bitcoin prices depend on the trade. Any wealthy trader can come and shake the market overnight, which makes it even more unpredictable and more complex to invest a large sum of money in. 

Low Acceptance:

Unlike credit cards, debit cards, and other currency cards, bitcoin wallets and money is not widely accepted. Only a few merchants allow transactions and purchases through bitcoins, making it difficult to use the money in the time of need.

Other than that, these coins are in no way present in a physical form to the investors. Although there have been talks about introducing cards with bitcoins wallet information, there has been no official consensus. Each penny that you have in your wallet needs to be transferred to other currencies to be used.

Lack of Standard Documents or Metrics:

No matter how well you do your research, there are still things that you might never know or understand. There is a ton of information on the web when it comes to cryptocurrencies, but be that as it may, there are still some loopholes you might find once you get into it. Moreover, no one can know the definite value, and there are no proper documents or metrics. All you can understand or do is make and keep a record of all transactions without putting in much effort. 

Their rates are exorbitant: 

Well, this probably doesn’t come as a surprise for many of you, as bitcoin primarily gained popularity due to its hastily increasing value. However, that is one reason why you should think twice before jumping on the bitcoin bandwagon.

The focal reason is that it is a financial and emotional roller coaster, and you should only invest as much as you can risk losing. In addition to this, you must remember that rates aren’t stable, and you can suffer a significant loss. A bitcoin worth $41,973 on 8 January 2021 dropped down to $33,400 by 11 January 2021, a pretty drastic drop. Hence, know the risks before investing in it. 

Unsafe Wallets and No Buyer Protection:

Let’s say you are all set to invest in bitcoins and are fully aware of all the ups and downs. However, there is one last thing you need to know before putting thousands of dollars at stake. Bitcoin wallets are highly unsafe. How? If a hard drive crashes, any virus damages the data, or any other factor that damages the wallet file, automatically deletes all bitcoins in your wallets, and they are lost forever.

There is absolutely no way to retrieve or use them. Moreover, if you make any purchase or transaction through your wallet, and if by any chance the product is not delivered to you, there is no way you can claim that money back. Bitcoins come with no buyer protection, which means you can lose your money trying to buy something online with them. 

Bitcoins have their own set of pros and cons; however, some things make you think twice before buying a bitcoin, which sometimes even make you overlook its advantages. Hence, weigh all the pros and cons, and then start investing your hard-earned money in bitcoins. 

Knack for writing and reporting on latest updates and news.