Bitcoin is undeniably gaining popularity these days. While we see stories of scam in social media, we also hear stories of enormous genuine earnings and benefits here and there.
A curious mind would wonder whether it is a safe investment or not. As we all know, any form of investment is naturally risky. There is always the potential for a success or a loss.
And just like in any other venture, knowledge is key. An important tip is to invest in awareness first before anything else. Let us consider two major topics people talk about today.
The biggest threat an investor should be aware of is sudden price drops. While unpredictability can be exciting, it can also be a cause for concern.
One bitcoin’s value of $600 at the start of the year can go up to $3,000 by August. Price can change to $1,500 after a few weeks and go up to $3,500 towards the end of the year.
While some critics are pessimistic about how this situation can change in the future,
a few also believe the price can stabilize as more people begin to enjoy it.
There had been reports of million dollar hacks you can find on the internet. Critics report that Bitcoin wallets can be saved in the cloud or locally and just like any other file, Bitcoin can be lost or stolen.
People buy and sell using a website or a mobile application making hacking a possibility.
While this is a threat to some, others believe Satoshi Nakamoto, the developer of Bitcoin,
has created the network with safety in mind above all else. Some supporters argue that the
Bitcoin ledger is being tracked by over ten thousand nodes which are believed to be safer than storing data on centralized servers. Transactions are public promoting transparency, and no confidential information is required when making a transaction.
Whether it is safe or not is relative to the individual.
As this system is relatively new, it is recommended that an investor fully understands both the risks and advantages of keeping oneself informed.
Seeking advice from a more experienced Bitcoin user/buyer is another good tip. When one is aware, he’ll be ready to jump in with both feet.