Should I Be Investing in Bitcoin?

Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo” by antanacoins is licensed under CC BY-SA 2.0

With all the hype and the talks that have surrounded cryptocurrency-and Bitcoin, in particular–over the past several years, it can be nearly impossible for someone on the internet to not have at least heard of it. Considered to be the first cryptocurrency ever developed, Bitcoin was “invented” more than ten years ago by someone who goes by the pseudonym of Satoshi Nakamoto.

Now, you can use Bitcoin as well as other newer forms of cryptocurrency to pay for a lot of things and even gamble with it. Bitcoin casinos are starting to gain popularity amongst online bettors, particularly those who are extra sensitive about their online privacy and anonymity while gambling.

With this in mind, you might be interested in investing in Bitcoin, After all, people are crazy over it and some even treat it as the new “digital gold.” But is it a good investment? Here are some things you should consider.

Bitcoin is volatile

This is one of the most common things you can hear about Bitcoin when discussing its pros and cons–one con of it is that it is very volatile. It can go up in value for a huge margin in a matter of days but can also get a huge drop the next day. So, you may buy in today thinking that it can go up further, since it recently went up, only to find that it drops a huge level the next day.

This is one reason why a lot of people have likened investing in Bitcoin to gambling. You have no real control of the odds, and it is stacked against you for most of the time. You can make a huge profit, or you could lose a lot of money in just a single price change.

No one fully understands it yet.

Although there are a lot of things that we know about how cryptocurrency works, there are still a lot of things that are not known about it yet, and only a handful of people knows it on a full scale. Even the “inventor” of Bitcoin is only known by its alias, and his real identity is yet to be uncovered.

Because of this, some people may advise that investing in something that is already a decade old but is not yet fully understood by the majority, is not a good idea.

Crypto can be used in fraud

Since BTC and other forms of cryptocurrency are completely anonymous, people use this to their advantage for fraudulent activities. So, be careful on people out there claiming to be either investors or financial or wealth advisors that claim to be able to help you make huge amounts of money through Bitcoin.

Always remember, if the offer is too good to be true, it probably isn’t. If someone would ask you to make a huge deposit to a Bitcoin wallet, stay clear of it. You are always better of making a small investment on your own than risk getting scammed by fake advisors on social media.

So, should I invest?

There is without a doubt that cryptocurrency can be a promising investment. However, given its current state, you should take a closer look at your money first before considering a huge investment in it. If after understanding the risk, and you still want to jump in, then do it with a careful step. Once you are sure, you can look into investing in Bitcoin in Canada

Always remember to do thorough research every time, and do not put out your entire livelihood in BTC. After all, there are other types of investments you can also take that are just as promising, if not more.

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