Monday, January 30

The advantages of using Bitcoin 

Cryptocurrency has become a topic of much debate over the past couple of years. After emerging in 2009, Bitcoin has seen many fluctuations in its price points, starting from absolute zero and climbing to nearly $70,000 at its peak. Following its influence, altcoins have sprung on the market as well, and there are currently thousands of digital coins and assets that investors can have their pick from. And while governments and financial agencies have started paying attention to crypto, and some countries, like El Salvador, have taken the step to adopt Bitcoin as legal tender, the world is still largely reticent.

A lot of it is due to the extreme volatility of cryptocurrencies. Prices fluctuate so dramatically that there can be marked differences on a daily or even hourly basis. And while more established currencies such as BTC are typically more stable, it’s still not enough to assuage the fears of detractors. So why do traders continue to invest in Bitcoin? The past year has dealt several harsh blows to the digital money ecosystem, and prices have plummeted quite severely after reaching record-high values in the final months of 2021. There must be something that makes crypto attractive to investors, but what is it exactly?

Accessibility 

One of Bitcoin’s most significant advantages is its ease of use. As a general rule, it is in no way bound by geolocation, so you can perform transactions without worrying about cross-border regulations or additional fees. Creating an account on an exchange in order to start trading is similarly straightforward. After providing the necessary identification that validates your account and confirms your identity, you can begin investing almost instantly. It’s essential to check the Bitcoin price before making any transaction, however, in order to avoid poor undertakings. Even if you’ve checked the BTC values shortly prior to a new transaction, it doesn’t hurt to double-check them. Being a trader involves a lot of research to make sure you’re consistently making choices that are as close to an ideal scenario as possible.

Also Read  Germany set for dream final but Voss-Tecklenburg's journey far from over | Women's Euro 2022

Since there’s an ever-expanding number of sellers and brands that accept cyber money as a veritable source of credit, alongside cash and credit, you can also use your crypto to make daily purchases. It only takes a few minutes to convert your crypto into fiat money as well if you want to purchase from a physical location that doesn’t yet permit crypto payments.

Transparency 

One of the most attractive aspects of Bitcoin for traders is how it has managed to remain censorship-resistant in spite of its enduring popularity. Users are identified via the use of numerical codes, so you remain completely anonymous when you use Bitcoin. This ensures that there’s no public tracking, and no transaction can be traced directly back to you. This positive aspect can also create problems, however. Crypto wallets are one of the most coveted assets targeted by hackers, mainly because there are essentially no consequences associated with theft. Keep your passwords well-guarded, and make sure you don’t forget them or share them with anyone. Many scamming schemes aim to extort these credentials to gain access to your crypto.

Bitcoin is also not answerable to any central authority, whether governmental or a central bank. It is entirely decentralized, not regulated by third parties, and therefore not susceptible to external influences. Authorities cannot freeze your Bitcoin or close your accounts, as could be the case for traditional bank accounts. For many users, this implies a higher sense of autonomy and control over their finances.

Nevertheless, the conversation has recently shifted towards possible regulations that could be placed on BTC and altcoins in the not-so-distant future. However, it remains to be seen how easily this can be implemented in real life. The main problem is likely to be that a majority of traders won’t feel comfortable with the change and might leave crypto to focus on something else. Simultaneously, if no regulations are ever placed on digital money, it’s unlikely that it’ll ever be recognized as legal tender worldwide.

Also Read  What is the key to not being fined if I sleep in a van?

This would be a pity since Bitcoin was created with the aim of being used for daily transactions, and while experts estimate that blockchain technology could potentially herald the beginning of new, more efficient systems across all fields and areas, the original purpose of BTC has been to serve the same functions as fiat currency. Not achieving this would seem like a loss.

Return potential 

We’ve already established that Bitcoin can get very volatile. This has prevented many traders from becoming involved with it, afraid that they’ll lose their capital. As a general rule, being cautious is very important when engaging in any trading. Whether you’re dealing in stocks and bonds or real estate, you can’t jump to start undertakings of whose success you’re not at least partially sure. There’s always a certain degree of risk that comes with investments, but you should still aim to keep that risk to a minimum.

And while volatility is heavily associated with heavy losses, the reality is that it can bring forth just as much earnings. You can see considerable returns if you monitor the price point changes closely. For instance, between March and December 2017, bitcoin went up from $975.70 to a whopping $20,089. By 2021, the price had surpassed $63,000. This goes to show that despite the volatility, crypto shows high return potential if you know how to navigate the market and are aware of the changes.

With a growing number of users believing in the potential of Bitcoin to drive revenue, both individual investors and businesses are approaching it with interest. Currently, there’s a lot of discussion surrounding the current bear market and the concomitant crypto winter. Prices have been dropping at an increasing rate, but there’s no shortage of investors confident that digital assets will bounce back just as they’ve done before. Over the years, Bitcoin has seen many slumps but regained its strength and returned stronger than ever. It’s not unlikely that this will be the eventual outcome of the current situation.

Leave a Reply

Your email address will not be published. Required fields are marked *