TL;DR Breakdown

  • People are cautious about buying BTC.
  • BTC is soaring in price.
  • BTC is still worth the purchase.

How to negate the disadvantages of Bitcoin

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People are cautious of investing in Bitcoin (BTC) because they cannot grasp their heads around how money can be digital. We are so used to things being physical to have something you can exchange for something else.

Once upon a time, people used to pay for things using barter. The reality of money and anything we class as worth is we assign its wealth, and with the emergence of technology, your money is often just a digital representation.

Bitcoin defers from the digital version of your money displayed on your bank balance because Bitcoin is more transparent. Sometimes the money you see online representing fiat currency is not actually in the bank at the time.

With Bitcoin, the money you have is always accessible because there is no intermediary body that stops you from accessing it. BTC’s peer to peer system also means that you can directly send money to people and not have to worry about anything interrupting your ability to send money.

For example, you do not have to worry about exchange rates if you trade with BTC. BTC has many benefits, making it worth it, but some genuine disadvantages are important to reflect on.

Price rising

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The BTC price is rising at an incredible rate. The BTC’s price climbed to $22,731 by the time of writing, 20:45 GMT. To be able to buy a whole coin now would cost an arm and a leg.

When the coin first launched, it was worth $0 and quickly gained value. Had you purchased Bitcoin when it launched 12 years ago, you would have $22,731 in profit today.

Never fear you may not be able to buy the whole coin straight away, so the best approach is to buy a portion of the coin and then gradually save. The process of extracting BTC is also slowing down, meaning there are many opportunities to catch up.

Already 18.5 million BTC’s have been mined, meaning there are less than 3 million Bitcoins to be mined. Now that there are fewer Bitcoins, the mining reward for Bitcoins has also reduced dramatically and will continue to do so every four years.

It is worth investing in BTC still today because although it is slowing down, it is gaining popularity, and it is only a matter of time before everyone is fighting to get what is left of BTC.

Losing money

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The most remarkable feat any investor has is losing their money. One major disadvantage of investing in any cryptocurrency is that there is the potential that your money could get lost.

The concept of keeping gold raises the same issue. If you do not keep track of where you put your investment, you could lose it. Some people opt for apps because they are free, anyone can purchase Bitcoin in an instance via an app.

If you do not trust your ability to keep track of what is happening with your app, then perhaps a more formal company is the best route. Coinbase is a trusted company that can function via the web or on your phone.

The benefit of working with a company like Coinbase is that they are guaranteed to help you keep track of your money. You could lose your crypto money for several reasons, so it is wise to keep evidence of it to help you and the company’s you work with keep track of it.

Every investment has risk, but BTC is worth it.