PROS AND CONS OF BITCOIN

THE PROS AND CONS OF BITCOIN THAT YOU SHOULD KNOW BEFORE YOU INVEST

In the world of cryptocurrencies, there is always the risk of uncertainty despite its promising factors that one day it will take over the world and will be considered as the new monetary system in the world. However, it is full of gambles especially those who just started.

Initial Coin Offerings (ICO) is risky since these are for the beginners in cryptocurrency even though it boasts a huge chance of getting big when it comes in returns for the investment, but also it is considered volatile and risky for many reasons, however, there are major financial institutions out there that are willing to take the risks because of the promises cryptocurrency holds in the future.

If you are planning for an investment, cryptocurrency is still considered one of the worthy investment to look into deeper and to give you a better insight about it, piyasacilar prepared a list of pros and cons of cryptocurrency that for sure will get your interest.

world of cryptocurrencies

PROS

  • MASSIVE RETURNS- Cryptocurrency which was first introduced in the world of trade and finance in 2009 was worth merely $6-dollars and last year, it reached to $17,000 and above in its currency no wonder a lot of people are enticed to pour their investments in cryptocurrency and bitcoin. Today a bitcoin is worth more than $400,000.
  • QUICK CASHOUT- Cryptocurrencies are based on networks and a lot of cryptocurrency companies already received a groundswell of supporters as well as investors which are likely to pour more investment which could result to faster cash out quickly. Cryptocurrencies, as we know, are a risky investment, it is best to consider it as an angled investment venture capital type of investment and even ICO funds are already worth millions.
  • LIQUIDITY- If you decided to buy an equity in a startup, you should consider expanding your network to new members, meaning you should convince them to pour their ICO investments into your equity to make profits a bit more realistic and promising but this does not mean that the accumulated amount from the gathered equity will be cashed out instantly.
  • CLEARER DIRECTION- Considered as the best advantage in investing in cryptocurrency is its ability to rise rapidly despite encountering some speedbumps along the way. If you happen to come across a cryptocurrency startup, you will notice that this will become more different in the coming years in a more positive manner due to the rapid growth of this industry.

CONS

  • VOLATILITY- Compared to other types of investment, cryptocurrency is more volatile and risky specifically in terms of security and privacy due to the fact that there are numerous documented cases of hacking incidents which keep investors from pouring their money in this young industry.
  • STALLED POTENTIALITY- Despite its promise, a lot of investors are still undecided to invest in cryptocurrency because of its failure to attract more users which could bankroll the platform no wonder there’s a sudden fluctuation of cryptocurrency assets and stocks and will likely see a drop-off in its prices.