Pros and cons of bitcoin investment
By this time almost everybody is known or heard of Bitcoin, but do they fully understand the pros and cons of investing in this cryptocurrency?
Investing in bitcoin is somewhat similar to investing in the stock market, that means it comes with high risk and high reward, let’s look at some of the pros and cons of this investment
What is bitcoin?
Bitcoin is an encrypted digital currency that appeared in 2008. It can be exchanged, traded directly with Internet-connected devices without going through an intermediary financial institution. , no one manages, the transactions are completely done immediately & anonymously.
Is bitcoin virtual money?
In fact, bitcoin is not virtual money, but it is an “encrypted electronic contract”, so it is completely wrong to call it “virtual”.
Because when it comes to the word “virtual”, that is the currency used in a certain community, for example, if you recharge money into a game, the money in the game will be called virtual money, and it cannot be converted to real money in real life, if it can, its value will also be pushed down.
Bitcoin is of a global scale and is used to buy many things as valuable as real money, and it can be exchanged for real money with great value, this is the world’s most valuable currency. By the latest update of this article, the price of 1 bitcoin has exceeded $ 5000.
The pros of owning and investing in bitcoin
Convenience in trading: With bitcoin, you can send an unlimited number of bitcoins to your friends and relatives. Whether they are anywhere in the world. And you can also send it at anytime, no one can manage the money you send.
Transaction information is displayed but your identity is completely secure.
Unable to be counterfeited: The cost of gold quality testing is very high, and the verification of Bitcoin does not cost anything, and there is a fact that bitcoin cannot be counterfeited because it does not exist in physical form.
Very low transaction costs: There are no transaction intermediaries, only transaction processing fees, but it is not worth much.
Environmental protection: Not using paper printing chemicals or exploiting. Computer systems dealing with Bitcoin transactions consume much less electricity than the current financial system.
The cons of owning and investing in bitcoin
Not popular: The fact is that people, especially those not developing as much as Vietnam, are used to using money and gold. They are not very knowledgeable about electronic currencies. Along with that many famous newspaper, sites have quite negative articles about this currency so people are still very shy and have many concerns when using bitcoin.
Somewhat difficult to use: To use bitcoin, you need to create a wallet that stores bitcoins, operations that must be performed on the computer. For those who are technologically blind and who are not instructed, it is difficult for them to do these things themselves, and there is a risk of being cheated.
That concludes the article, we hope that after reading this you’ll have a more throughout understanding of this new cryptocurrency and consider whether you should invest in it or not.