Pros and Cons of Investing in Bitcoin

17 April, 2018

Cryptocurrencies have been in the spotlight in 2017, and their uptrend is still not over. Last year in April, Bitcoin – the main representative of cryptocurrencies - traded at around $1,000. Today, its price is still up more than 700% compared to 12 months ago, which is a return on investment not many commodities are able to mirror.

The story of cryptocurrencies began in 2009 with the invention of Bitcoin – a currency solely valued by supply and demand and without the backing of any central bank – which makes the concept of cryptocurrencies very similar to gold and other precious metals.

However, many traders still don’t understand the key benefits and risks of investing in cryptocurrencies, and that’s why we’ve compiled a list of the most notable pros and cons you need to consider when buying Bitcoin.

The Pros:


Bitcoin can be used for real purchases. A growing number of businesses and websites are accepting Bitcoin for their goods and services. If tech-giants such as Microsoft and Dell are already accepting the cryptocurrency for their products, there is no doubt that other companies will follow.

Blockchain can change the world. The underlying technology behind Bitcoin and other cryptocurrencies is called blockchain, and its potential is already recognized by a number of industries, some of which blockchain has already revolutionized. Fintech and other startups are increasingly relying on blockchain to add value to the final customer.

Each transaction is anonymous. All payments you make with Bitcoins are completely anonymous, as there is no central place to keep records of each transaction. Only the amount of Bitcoin sent to an address can be determined – not the sender, recipient or the amount of Bitcoin that any individual holds.

The Cons:


Cryptocurrencies are very volatile. Being a relatively new phenomenon, Bitcoin and other cryptocurrencies experience heavy price fluctuations on a daily basis. However, with supply and demand forces and price changing regularly, this can create many trading opportunities for a savvy trader.

Bitcoin faces heavy competition. There are hundreds of cryptocurrencies currently listed on crypto-exchanges, and it seems that new ones are entering the market every day. Not only does Bitcoin face a growing competition from other cryptocurrencies, but even Bitcoin itself got split into two different currencies - Bitcoin and Bitcoin cash – in an attempt to increase security and transaction speed.

While Bitcoin and other cryptocurrencies have revolutionized internet payments and blockchain is about to enter into our daily lives, there are still risks associated both with investing in cryptocurrencies and with the technology itself. Furthermore, with the heavy price fluctuation, you need to analyze your crypto-investment to the tiniest details in order to protect yourself against large losses.


Link:   Cryptocurrency: Bitcoin
Peer Mountain to Ensure Data Security

Despite the fact that current technological development presents various solutions with regard to data management, the problems of digital identity theft and data compliance...

Ambiguous Relationship Between Western Union & Ripple

The Western Union Company, a real colossus among the global financial and transaction services, has once again reaffirmed their intention...

How to recognize and avoid the most popular crypto scams

When cryptocurrencies went big, back in 2017, many have recognized their potential to disrupt the traditional financial market, and bring a new era of...

Bitcoin Predictions that are Coming True

The crypto space never stays the same. Instead, it is always evolving, always changing, and in some way - always advancing. Of course, this does not include the coins' prices


South America: a new crypto currency haven

Last week, an international trade transaction has been concluded between two South American countries, namely Argentina and Paraguay. The former bought $7.100 worth...

Top 3 Crypto Performers. Overview Feb 2019

While the largest cryptos, such as Bitcoin, Ethereum, or XRP usually dominate the headlines, a lot of investors are still interested in some of the lesser-known coins...

Grin is More Profitable Than Ethereum

The year 2018 was particularly difficult for miners who had to experience numerous shutdowns and oftentimes grew frustrated over the radical drawdown of computation...

JPMorgan's Cryptocurrency: a Real Deal?

The announcement made by JPMorgan Chase, the leading investment bank in the United States, regarding the launch of its blockchain and cryptocurrency...