Over the last couple of weeks, the word that’s been on the top of everyone’s mind is Bitcoin.
This is because the cryptocurrency is taking the world by storm. By being the first decentralized digital currency to exist, it has sparked the interests of people all over the world.
However, despite Bitcoin being hailed as one of the most profitable things to invest in, many don’t realize that all is not what it seems.
Not everyone is going to end up with the same benefits from using Bitcoins and not everyone using the cryptocurrency is going to become a multi-millionaire overnight.
Here are some of the reasons as to why you shouldn’t invest in Bitcoins.
1. Volatile in nature
By default, you need to be aware of the risks that come with investing in cryptocurrency. Given their nature, it is always safe to assume that they will always be volatile in nature.
This is because, given their virtual stance, there is no certain way of forecasting where the currency will go, or what needs to be analyzed to understand its trends.
Such volatility makes it almost impossible to forecast what is going to happen with the Bitcoin and hence if you do invest in it just keep in mind that you are going in blind.
2. Is this legal?
Quite probably one of the main issues that everyone should have with bitcoin is whether it is legal or not.
At this point in time it hasn’t been declared illegal as such, however, it also hasn’t been considered to be a recognized currency for many countries including Pakistan.
3. Can’t be classified as a commodity or a currency
By now, you need to be pretty aware of the other really big issue that comes with bitcoins. The main issue is that there is no way of classifying it as a commodity or a currency.
This once again stems from the fact that the currency has no physical form, unlike every other form of currency that has been used before.
You are never in real contact with your bitcoin and this makes it very hard to classify it in any form of classical currencies.
4. What regulation?
Bitcoin operates in the digital world. This means that there is no law or government or bank involved in the entire transaction.
Hence, it amplifies that if someone was to con you, or not deliver on their promise there would be no way to hold them accountable.
This just confirms the fact that there is no real method of regulating or keeping a check on things and you stand a very high probability of being ripped off.
5. This is where the weird stuff happens
Given its nature of not needing any legal or formal methods of tracking it down, bitcoin also helps you maintain anonymity when it comes to your transactions.
This has made it the ideal choice of currency to be used on the darknet to buy goods and services that are considered illegal in most parts of the world.
With this direction that bitcoin has taken many claims that it would be wrong to promote a currency that encourages such dealings.
6. If you don’t get it – get out
Many believe that cryptocurrency is nothing but a big bubble. This means it’s going to keep expanding till it eventually pops or blows up.
This means that in order for you maximize the profits (if any) that you could make you would need to really understand how the whole online currency world works.
However, if you aren’t well versed in this area, it is probably a better idea to steer clear in order to avoid any and all chances of losing all of your investment.