These days one of the foremost businesses for rendering money is trading with the cryptocurrencies. Cryptocurrencies are the new forms of digital assets which most of the traders use as they get a safe medium of exchange for their transactions. This makes the cryptocurrencies as the ultimate digital assets or virtual currency with decentralized control. For secure financial transactions, cryptocurrencies work on the cutting edge technology of Blockchain. The blockchain is the distributed ledger(open source) technology. The first digital currency or cryptocurrency is Bitcoin which uses the blockchain technology.
Since after the introduction of Bitcoin in 2009, many other altcoins(Alternativecoins) have come into existence in the market of trading, but bitcoin is still the leading cryptocurrency of the world.
The question raised is that until when? How much time will it lead the cryptocurrency world of trading? Many traders have already started facing issues with BTC(bitcoin). Even though the price of Bitcoin in an exchange with other altcoins is higher, the traders have begun to trade in other cryptocurrencies.
Bitcoin trading was in trend a time ago. Now as the competency has increased, various other developed cryptocurrency are introduced in the market of digital trading. Flaws or you can say that demerits of bitcoin’s privacy are faced by many users. So, it is still debatable why the Bitcoin trading has to be avoided.
“Nothing’s perfect. There’s always a room for improvement.”
Let’s have a discussion about 10 important reasons regarding bitcoin’s trading.
10 reasons to avoid Bitcoin trading taken into account-
- Legality in the country
Bitcoin or other cryptocurrency has raised its marketplace value all over the globe. But people should know if it is legal or illegal in their countries. In countries like India, it is neither legal nor illegal. The government has already cautioned its users about the risk involved.
- Decentralization ( a problem or a solution for investors)
All the investments and transactions related to Bitcoin work on Blockchain which is decentralized. So it does not have any single authority you can complain to if there is any leakage of data.
- Lack of trading experience
Never do a thing which does not involve any apparent profit. It is true that many traders have earned a big amount investing in the cryptocurrencies. But keep in mind that there is always a risk of losing all that you invest in Bitcoin.
- Do not get lured away
Many investors get a desire to make an investment with Bitcoin, as they see other traders to have high benefits in it. Before making a decision, check the financial damages also which were faced by many investors as it is very volatile.
- Damage to the environment
Bitcoin mining requires a huge amount of power to run mining rigs, the estimated use of electricity is abundant and also need a colder region to set up. This can pollute the environment as it is consuming so much of the consequential resources.
- Undefined storage
The Bitcoin has its wallets which are normally stored in a system. If that system(mobiles or computers) faces a theft, then the whole belongings the user owes is lost.
- Anonymity not maintained
Bitcoin uses a public ledger (blockchain) for its transactions. It does not maintain anonymity while making a transaction. Hackers can easily notice the pattern and the users get their details leaked. There are other cryptocurrencies which maintain anonymity and are more secure than Bitcoin.
- Comparison with gold
As gold is known to be one of the precious assets, it has its various applications. But Bitcoin, being a precious digital asset doesn’t have any other applications in any industries except its virtual use.
- Useless in apocalyptic situations
The Bitcoin becomes of no use to the traders when there’s a disastrous condition. Virtual currency can’t serve you when there’s an emergency. You can not have food or other needful things while having the cryptocurrency. So it will be a wasteful idea to invest in Bitcoin, one would rather prefer to invest in buying other sustainable assets.
- Ponzi schemes
Every day we hear of a scheme to earn money easily, same as with the Bitcoin. There are several Ponzi schemes which guarantee to have benefits after trading with Bitcoin. This makes it hard for investors to decide on a genuine platform.
So in the end, it is better to avoid trading with Bitcoin or other cryptocurrencies as “prevention is always better than its cure”.