Is it safe to use cryptocurrency?
February 19, 2020 (Investorideas.com Newswire) This might be a million-dollar question for new users of bitcoin. Those who have been using bitcoin from the midst of 2010 always think bitcoin is a haven for users. Things have changed a lot over the past years and many reputed companies are offering premium services to cryptocurrency users. We are not going to give any verdict on this topic, rather we will highlight some key points. After reading this article, we are sure that you will be able to answer this question on your own.
Proven track record
The first thing you need to consider is the proven track record of bitcoin. If you do some research on the internet, you will be surprised to find how popular it has become over the past few years. Though bitcoin emerged in the global market back in 2009, things started to take a positive turn for the cryptocurrency industry from the midst of 2010. People might react to rumours, but no rumours can survive over such a long period. Moreover, Binance, Bitfinex, bigX, etc. are favouring cryptocurrency users in many ways. To be precise, a big business industry has developed based on the crypto industry. Unless people see a future in it, they are never going to make an investment. When it comes to big investors and companies, they always assess the risk factors before taking any steps.
Can you trust the decentralised network?
Bitcoin operates in a decentralised network. All transactions are reflected in a public ledger and there is no way hackers can compromise the blockchain technology. Major companies, like Overstock, Namecheap, Newegg and others, are accepting bitcoin as a standard medium of payment. If they can trust bitcoin, the retail consumers shouldn't have big problems with the use of cryptocurrency. Though it's not regulated by the central government, it's not subject to human manipulation. In a sense, transactions are carried out in a much safer channel where there is zero chance of data leakage. Most importantly, you have the unique ability to cut down transaction costs by cutting out the middle man. So, the decentralised network should not be an issue; rather, it's a great positive side to the cryptocurrency industry.
Price stability might be a big concern when using bitcoin. Though the price of bitcoin has surged significantly higher in the global market, the downfall from the record high of $20,000 in 2017 might bother the big investors. But such a massive downfall is nothing but a deeper correction in price. Those who are familiar with the Forex trading industry very well know how the price of certain assets or currency drops after exhibiting an extended bullish rally. So, if you are looking to invest a big amount of money, you must consider the price stability. However, the price of bitcoin is much more stable as it is slowly moving towards the cap.
Though bitcoin, along with other popular cryptocurrencies, is globally accepted by big tech companies and leading organisations, it still has no regulation from the central bank. So, trusting your money to a decentralised network might be an issue for those who have a limited source of income. To stay on the safe side, it's better not to invest all of your money in the crypto industry. Trade with money that you can afford to lose. Only then can you make a wise decision. However, when it comes to personal use, you don't have to worry about global acceptance. Many retailers are now accepting bitcoin and other major cryptocurrencies as a standard medium of payment. In the future, the list will grow larger, since it allows business owners to cut down operation costs to a great extent. Most importantly, it makes the business process much more efficient, which allows business owners to focus on business growth. So, the choice is yours as to whether you embrace digital cryptocurrency or not.
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