Important Things to consider Before Buying Bitcoins
When the central bank in Cyprus froze bank accounts and limited the amount of cash that could be taken from bank accounts it created a huge upheaval that was felt around the world. If consumers did not need money how could they purchase and sell the things needed to carry on in our modern world? The reality is they cannot so consumers around the world started to look for safer alternatives to fiat currency. Fiat currency is currency that has no tangible value aside from what the costa rica government assigns to it.
Consumers are looking for a way to store their buying power to protect themselves from having bank accounts frozen for everlasting intervals. Many people Pocket option started trading in Bitcoins. This is a crypto-currency which means it cannot be easily counterfeited but before anyone starts buying into this new currency it would be prudent to understand the risks.
Bitcoins are not issued by any central bank or government so there is no answerability whatsoever. If you are dealing with Dollars, Euros or Pounds you have the assurance that the government behind it will honor the debt while Bitcoins do not provide any guarantees at all. The fact that no one truly knows who made this currency so there is no way of knowing whether it could be thieved from under our eyes.
These Bitcoins are stored inside a digital wallet that can be encrypted on your computer. While this should provide a sense of security if your computer is lost your Bitcoins are gone as well. It is not like a charge card where you can get a replacement and carry on like nothing has happened.
While the security of this currency is a concern by far the biggest worry is the value of computer. The perceived value of a Bitcoin can alter in a moment and unlike fiat stock markets that are backed by hard assets owned by a country if a Bitcoin value falls you have nothing of value at all.
There are a few transactions around the world that sell and get Bitcoins, but you should not purchase them thinking they’re going to rise in value. They are be sure you item which some would classify as a “fad”. Tomorrow it could lose all its real value and never recover.
To recap the risks, you don’t have any real security with Bitcoins since they are not offered by a government. The value if highly volatile and might be reduced to zero in a pulse and the reality that the currency has only been common for a few years shows it is not proved to be reliable.
If you are looking for a way to preserve value then gold and silver coins like gold, silver and american platinum eagle may be more beneficial since they’ve been used for centuries as a medium of exchange. When it comes to investing don’t ever make break outs decisions but weigh the risks and potential compensation and remember that there is no sure things when it comes to digital stock markets like Bitcoins so approach at your own risk.
When the central bank in Cyprus froze bank accounts and limited the amount of cash that could be taken from bank accounts it created a huge upheaval that was felt around the world. If consumers did not need money how could they purchase and sell the things needed to carry on in our modern world?…