Bitcoin is a popular old cryptocurrency for Bitcoin inquisitive.
It's where to start investing.
Understanding Bitcoin's advantages and cons will help you decide if it's worth investing.
In disclaimer, I'm not a financial advisor.
The video is for informational and educational purposes only.
Hey everyone.
Welcome to Crypto Trends.
In today's video, we are going to go over the four pros of Bitcoin and four cons of
Bitcoin.
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So without further ado, let's get into it.
Advantages of Bitcoin, although Bitcoin was launched in 2009, it is still considered a
novel type of currency with a lot of misunderstanding.
Learning about the benefits of Bitcoin will help you decide whether it's a wise investment
for you.
Advantage number one, accessibility and liquidity.
Cryptocurrency frequently has no borders and Bitcoin is no exception.
Bitcoin's accessibility and versatility are important benefits.
It takes only a few minutes to transfer Bitcoins to another user, so it may be used to buy
products and services from the growing list of places.
Accepting it.
This makes spending abroad and exchanging currencies easy with few to no expenses.
Bitcoin can be sold at any time.
Advantage.
Number two, user anonymity and transparency.
Bitcoin users can have several public keys and are recognized by numerical codes.
This prevents public tracking and user traceable transactions despite being eternally available.
Blockchain technology protects transactions from fraud.
As the wallet owner, only you know how many Bitcoins you have.
If your wallet's address became public, you may generate a new one for increased protection
and anonymity.
Bitcoin transactions require no personal information, which promotes user privacy compared to traditional
banking.
Advantage.
Number three, independence from central authority.
Bitcoin is decentralized, meaning no government or central bank regulates it.
Authorities won't freeze and demand your coins.
The pricing isn't related to government policy giving users sovereignty over their money.
Bitcoin users consider this a major benefit.
Advantage.
Number four, high return potential.
Bitcoin prices fluctuate weekly and sometimes daily.
Bitcoin was $975 and 70 cents in March, 2017 and $20,089 in December.
In April, 2021, Bitcoin's price surpassed $64,000.
This shows that despite price volatility, cryptocurrency, consumers may see Bitcoin
as having a high return potential.
Many investors and businesses have adopted Bitcoin because more users believe it's a
promising global currency.
This increases return potential, especially for those who acquired it cheaply.
Some speculators estimate Bitcoin's price might reach $500,000 by 2025 due to a 21 million
coin supply restriction, many feel a supply cap will boost Bitcoin's long term worth.
Disadvantages of Bitcoin despite its quick growth and rising number of users, Bitcoin
has several downsides to consider before investing.
The more you know, the better decision you can make about Bitcoin investment.
Disadvantage number one, volatility sat Toshi Nakamoto limited Bitcoin to 21 million, therefore,
some considerate scarce.
This scarcity makes Bitcoin valuable, but also causes its prices to fluctuate since
the price is the only variable that may affect demand.
Other variables that drive Bitcoin's volatility include unfavorable news, uncertainty about
its future value and usage and security vulnerabilities.
Disadvantaged.
Number two, no government regulations.
A decentralized curr is a benefit of cryptocurrencies, but it's also a downside of Bitcoin because
investing in it is unregulated.
Bitcoin transactions lack legal protection and aren't reversible.
Making them vulnerable to scams.
Decentralization means Bitcoin has no minimum valuation.
If a huge group of investors stops using bitcoins and sells them, the value could drop affecting
people possessing a lot of the currency disadvantage.
Number three, irreversible Bitcoin's anonymity and upregulation make it insecure.
Bitcoin transactions are irreversible, therefore, nothing can be done if the wrong amount or
recipient is transmitted.
Loss is possible.
Many Bitcoin users store their funds in a wallet putting them at risk if they lose their
private key.
If a hard drive crashes or a virus corrupts your records or wallet your money might vanish
in minutes.
Disadvantage number four, limited.
Use Microsoft and some subway franchises accept Bitcoin, although it's not frequently used,
unlike credit or debit cards, this limits your spending.
So do you prefer using Bitcoin over Fiat money like US Dollar?
And if so, why?
Please let us know your thoughts in the comment section down below.
With that being said, here, we come to the end of our video.
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See you in the next video.
Till then, take care.
Thanks for watching.