Bitcoin Investment Analysis
Well bitcoin has its own advantages and disadvantages let’s take a look at it so we can understand bitcoin as an investment.
These are the advantages of bitcoin:
Bitcoin has no third-party seizures
Bitcoin is not attached to or connected to any bank, country, borders, or government. This means that no one and nothing controls bitcoin. Hence, the users will have a guarantee to use their bitcoins as much as they desire. Government or any other form can not interfere with these matters. Example of which is that Government can’t freeze someone’s bitcoin wealth.
Bitcoin has no taxes
Since this is not controlled by anybody exept its user, bitcoin has no taxes. Unless there is a trade between the user and his or trader himself. If the one the user is trading with adds tax, then the user should be the one to voluntarily add the tax as he or she is the one to input the amount.
No transaction costs
In bitcoin, sending and recieving bitcoins does not require to have transaction costs. This gives a good advantage to the bitcoin users.
These are the disadvantages of bitcoin:
Unregulated and uninsured
Since bit coin is not connected to any bank, country, or government it is hardly controlled. There are no regulations and insurances. There would be several risks that would go with bitcoin transactions as well.
Bitcoin is not widely accepted
There are only a few online merchants who accepts the idea of bitcoins. This makes it unreliable to use to everyday things.
Bitcoin wallets can be lost
If the computer which has access to the user’s bitcoins suddenly collapse and far from repair, the user’s bitcoins might as well go down to the drain. There will be no way of getting the user’s bitcoins back unless the computer is revived. It would be best to protect the computer from hard drive crashes and viruses.
Bitcoin value fluctuates
The value of bitcoin is constantly changing. This means that the value of bitcoin is unpredictable and changes rapidly. This might lead to unexpected situations that may make the owner in a good or bad position.
Bitcoin Investment Ideas
With all these advantages and disadvantages, you will have a guide to have an overview of bitcoin as an investment.