The Pros and Cons of Investing in Bitcoin

The first bitcoins were traded for mere fractions of a penny. Now, the coin is trading at an all-time high, surpassing $65,000 just this year.

Bitcoin is the most popular cryptocurrency on the market today. It ranks higher than over 7,000 other cryptocurrencies currently in circulation.

With all the buzz, you may be wondering if investing in bitcoin is right for you.

Below I’ve outlined the top pros and cons you should consider before you buy.

What Is Bitcoin?

Bitcoin was created in 2008 by an unknown person or persons under the moniker “Satoshi Nakamoto.”

Bitcoin is a digital currency that relies on a peer-to-peer network of users to facilitate payments. Users can send the coin electronically to any other user around the world.

Since it is decentralized, there is no central regulating authority, and the coin has no physical backing. Bitcoin also utilizes blockchain technology; you can track all transactions through a public ledger.

The Pros of Investing in Bitcoin

Pro: Accessibility

Bitcoin has become an increasingly popular payment method worldwide, with some merchants accepting the payment both directly in-store and online.

Buying bitcoin is easier than ever with companies like virgocx.ca. All you need is a smartphone or computer with internet access to send and receive coins.

That gives bitcoin the potential to reach a population of users who may not otherwise have access to traditional banking or credit cards.

Pro: Autonomy

For people who want to get away from centralized banking, bitcoin investing is a great alternative. Users can control what they do with their money without having to deal with an intermediary authority.

Pro: Fees

Bitcoin has all the benefits of credit cards and cash without the downsides. Fees are lower than you’ll typically pay with credit cards or other digital payment systems. These come in around 1% as opposed to 3%.

The Cons of Investing in Bitcoin

Con: High Volatility

There will only ever be a finite number of bitcoins in circulation, around 21 million. When accounting for the coins that have been lost, this brings the total down further. Due to this scarcity, the value is constantly fluctuating.

This high-risk investment can be a double-edged sword for a bitcoin investor, as the ability to gain substantial amounts of money in short periods comes with the risk of losing it all.

Con: Lost Coins

You can lose coins through attempted hacks, hard drive crashes, or files corrupted by viruses. If you use a crypto wallet and misplace your keys, there is no way to retrieve them. Once lost, the coins could be gone forever.

Is Purchasing Bitcoin a Good Investment?

Investing in bitcoin is easier now than ever.

But, as with any investment, nothing is a sure thing. So be sure to do your due diligence and don’t keep all your eggs in one basket. Instead, start small and grow your investments over time.

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