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The Bad Side Of Bitcoin

Tuesday, January 9, 2018

/ by Nurdin Budi Mustofa
The Bad Side Of Bitcoin

With so many people investing in cryptocurrencies and finding a lot of success, the idea of spending some money on digital coins can be very tempting. Over the last couple of years, examples like Bitcoin and Etherium have flown in price, with record highs in recent months. Of course, though, there’s always a downside to something which seems so good. When it comes to money on the web, there are loads of reasons to wait awhile, and this post is going to be showing you why.

Security: If you’ve read anything about Bitcoin in the past, you’ve probably heard about the legendary MTGox collapse just a few years ago. Once the single biggest trader and storage location of Bitcoin, this company was doing extremely well for itself in this market, handling money for some of the richest tech heads in the world. That is, until they lost over 400 million dollars worth of coins through security issues with their systems. Of course, nowadays, things are more secure, and you can be less cautious of these currencies. But, even now, you should always keep security in the front of your mind when dealing with them.

Volatility: As shown over the last couple of months, currencies like Bitcoin don’t like to stick at the same value for long. With spikes which increase the value of the currency by a huge margin happening all the time, now would seem to be a good time to invest. In reality, though, upward spikes will often come crashing back down, especially when money is so heavily influenced by online trends and other dynamic aspects. It only takes one large purchase of Bitcoin to change the value forever.

Usability: Finally, it’s time to think about usability, and the issues options like Bitcoin can present with it. You won’t find poor credit auto loans, mortgages, or other types of financial service in this area, making it almost impossible to live a normal life unless you find other people using the currency. For those fully invested in systems like this, it can be a challenge to carry out even the most basic tasks without selling some coins beforehand.

Along with finding big purchases hard to make, a lot of people will struggle to find smaller shops and retailers willing to accept cryptocurrencies. Limiting yourself to one or two places of business could make your life extremely hard. This sort of downside is rarely considered by those enthusiastic about Bitcoin. In reality, though, there simply aren’t enough stores out there with the power to take payment methods like this to make it work for you. Of course, though, if you’re patient, Bitcoins are very easy to sell.

Hopefully, this post will draw you away from the world of cryptocurrencies. Though the chances of making some money may seem high, you also put yourself under a huge amount of risk when you invest in new technology like this. To make sure you don’t find yourself in a mess, it’s a good idea to wait until platforms like Bitcoin have matured.

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