Why People fear investing in BITCOINS??
Why People fear investing in BITCOINS??
Investment and Business are two different aspects of earning high returns when compared with other types of occupations. Most financial consultants always suggest that if you can persuade yourself into it and make a difference, then it is a good choice to move further in this domain. Otherwise, the probability of failure will be more. India’s one the leading business consultant and motivational speaker, Dr. Vivek Bindra, think the same, and he also says investing in Bitcoins is similar to a blind investment. The CEO of Digital Currency Group, Barry Silbert, says that it is an investment of the highest risk and highest returns.
In general, when the fluctuations in a single day are above 30%, it is considered a risky asset or company to invest in; therefore, the astute personalities think that people are buying bitcoins, not because of its escalated price. Still, due to its hype and nobody knows or can predict on what basis the bitcoin’s value will be increased or decreased, this directly means that the bitcoin is out of our influence zone, at the time it is difficult to understand for a common person in a brief statement, who has no relation with the domain of cryptography or computer science. The algorithms on which bitcoin runs are tricky to understand in a short period. Many investors consider that investing in something which has no properly defined foundation is foolish.
Bitcoins started as a virtual exchange model, and presently it is one of the popular currency to invest. It is considered as the virtual investment, not as an actual investment.
A short walk on the difference between Virtual Investment and Actual Investment
|Actual Investment||Virtual Investment|
|It has more predictability; therefore, growth and fall can be monitored.||In its growth and fall, there is no calculation and prediction.|
|Long term value preposition exists||Long term value preposition doesn’t exist|
|People can also invest the least amount as per their feasibility and availability.||It is good for those who have enough disposable income.|
|It includes debt funds, equity funds, gold, share, property, fixed deposit, etc.||It includes all cryptocurrencies|
|Lazy and slow||Fast and volatile|
|Here calculated planning is possible for both the near and far future||Bitcoins are not a dependable asset for future planning|
|It is an old concept with detailed track records and higher credibility.||It is a novel concept with limited track records with lower credibility.|
|Tax benefits can be earned.||Tax benefits are decided yet in most of the regions.|
Apart from the differences mentioned above, the major difference is the actual investment is encouraged by the government, whereas in 90% + countries, they don’t promote crypto-currency as they don’t have any control over it, due to being completely decentralized. Bitcoins are directly proportional to the self-benefits as per bitql.app, and other investment modes go with mutual benefits. In traditional methods, there is the presence of a third party like banks who can monitor our transactions. In case of any sort of the wrong transfer, the process can be reversed, or if there is any suspicion of fraud or any illegal activity, it can be traced, but it has another face too, where our savings and assets are monitored and regulated by them, In the cases like bankruptcy we might end up losing our entire deposit. On the side, bitcoins can not be traced, or the transaction can’t be reversed. Consequently, safety issues arise. Recently, The Guardian has posted an article about the $64 million worth crypto-currency was hacked during the process of exchange, but on the other side of the coin, it helps in handling our finance autonomously, and there is no presence of any third party on which we must rely at the cost of providing security for our resources.
The above-discussed facts and concerns are due to crypto-currency being contemporary and also the lack of awareness to a certain extent when it comes to blind investment or gambling. Over time, the advancements in crypto-currency in both technology and management are helping it grow and connecting itself with more and more people either as a cryptographer, investor, or miner.