As a business owner, it’s always a good idea to be looking out for additional investment opportunities. Your profits should be put to good use, and if a wise investment means that you will be able to boost those profits over time – investing should never be seen as a short-term method of money-making – then it’s worth at least investigating further.
Bitcoin has recently become a popular investment choice for many. Although it’s no longer as profitable as it was at its height, making millionaires overnight, it’s still something that is growing, especially as the world begins to take more notice and bitcoin (among other cryptocurrencies) is now being used in more places.
Yet as with any investment, you do need to thoroughly understand what it is you’re getting into. Investing money is no guarantee of a good return, and you could lose those profits rather than build on them. Here are some of the pros and cons of bitcoin so that you can have a clearer idea of what you might want to do.
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The Benefits Of Bitcoin
One of the biggest benefits of buying bitcoin is that it is safe. In other words, bitcoin can’t be counterfeited, meaning that once you own it, you can be sure that it is the real thing, and not a construction made to con people out of money. The reason for being so sure about this is that, although bitcoin is digital and therefore potentially open to fraud, the number of security systems around it, including the fact that each transaction is unique thanks to the codes used that are impossible to crack.
There is also much less chance of identity theft when using bitcoin. If you intend to spend it as well as keep it to sell on once it reaches a higher value, you can do so safely. Using debit or credit cards online does have some inherent danger behind it, with the systems being older and more open to abuse. With bitcoin, there are no third parties involved; you direct the correct amount to the person you are paying, and it is sent to them. To make things even better you can use the Civic blockchain e-wallet which has in-built identification processes to ensure your ultimate safety.
Another benefit to bitcoin is the fees involved. In most cases, there won’t be any, unlike with most other online transactions. This is because the bitcoin miners have already been paid, making the transaction free for you. In the long term, this could save you a lot of money.
The Disadvantages Of Bitcoin
The biggest issue with bitcoin is that it is an extremely volatile kind of investment. Essentially, the price rises hugely and then crashes again, but being able to predict just when this is going to happen is increasingly difficult. The rises and falls can happen in just minutes with no warning, and if you are trying to make money through bitcoin investment, it can be a difficult journey.
Not only this, but bitcoin is still not widely used. More online stores are beginning to accept it, but it will be a long time until it is a payment method you can use anywhere you want to. If you’re only using bitcoin as an investment tool, however, this is not such a problem and can probably be ignored altogether. If you were hoping to find a way to boost your bank balance by exchanging your dollars for bitcoin and then using that new currency to buy items with, you’ll most likely be disappointed.
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