It’s an innovative and secure technology
Most often, bitcoin transactions are done from a smartphone. The question of security can therefore worry the most skeptical. Have you heard about the blockchain? Behind this Anglicism hides the security system of bitcoin exchanges. To put it simply, when you make a transaction, it’s stored in a huge public database. All transactions are recorded there.
This is where the real revolution is. Because thanks to this system, intermediaries are useless. Transactions are traceable and secure. No need for a bank, a supervisory body, governments. What shake the giants of finance who see their system completely jostled. You can get more information on Bitcoin Cash ABC site.
All the above arguments are all understandable. Moreover, after reading, we would tend to immediately type on Google “where to buy bitcoins? ” . No precipitation, detractors of bitcoin also have arguments of weight to argue.
Bitcoin is wind
Nicknamed “digital gold”, bitcoin does not have the same “properties”. If he is like gold limited in quantity and can not suffer inflation, he is also not real, palpable. If today is not a concern, what will happen if one day the states decide to regulate it? As our colleagues at Capital.fr underline , the rules of the game can then change. The French state has already expressed the wish to regulate bitcoin . Pascal Ordonneau, former senior executive of the HSBC bank explains:
Let’s summarize the question with a pesky experiment: what would happen if the owners of bitcoins or gold bars discovered one day that they lost all value? It’s very simple: the owner of bitcoin would have nothing, while the gold owner would have ..? gold with which to make jewels, sculptures. The underlying of the gold is that it is useful.
In other words, if the system collapses, if the bubble explodes, all those who bought bitcoins will end up with nothing. According to some observers it is better to invest elsewhere in something palpable. You can get more information on Bitcoin Cash ABC site.
The fear the explosion of the bitcoin bubble
The fear of a collapse in the value of bitcoin is also the biggest concern of investors. Bitcoin is extremely volatile. If its value has exploded in a short time, the opposite can also happen. At the end of December 2017, for example , the value of bitcoin collapsed from one day to the next . Without any explanation. The co-founder bitcoin.com has sold everything . He does not believe in infinite growth as some people want him to believe.
Bitcoin is a textbook case. This is the very archetype of the speculative bubble. For many, bitcoin is wind and yet reaches peaks of valuation. Investors are motivated by a rapid increase in value and the opportunity to get rich very quickly. But like any bubble, the bitcoin will burst. The big question is when.
Bitcoin faces fierce competition
If bitcoin is the cryptocurrency that knows the strongest radiation, it is not the only one on the market. Many other e-currencies exist and are experiencing impressive growth. The starting values are less impressive but it is a bet on the future. Because to date, many experts believe that the current architecture of bitcoin is no longer suitable for its growth . The fear of crash leads some investors to move towards competition.
Moreover, the value of bitcoin is such that many believe that it is already too late. It is therefore better for them to move towards other more accessible cryptocurrencies that have an even greater growth perspective. This strong competition tends to cool the ardor of some investors.
Should I buy bitcoin?
The arguments of “for” and “against” are of course admissible. So free to everyone to make an opinion and to estimate whether or not he must invest. Our opinion is only advisory, but we think it’s not too late to invest in bitcoin . It’s a certainty, if it’s a bubble it will explode one day, but we do not know when. If it’s a real bargaining chip just like gold or silver, then your long-term investments will pay off.
To limit the risks, simply follow the following rule: invest only what you are willing to lose. I invest enough to quickly recover your starting bet. No matter what path the bitcoin value takes afterwards, you will not lose anything. There is no point in playing big guys with such a volatile cryptocurrency. This is the risk with bubbles, they can explode at any time.