Various bitcoin news websites publish daily bitcoin news because bitcoin is a popular cryptocurrency. Many countries are making serious decisions over it because it is an unregulated cryptocurrency. A lot of bitcoin users and more than three lakh bitcoin transactions occur on the blockchain platform.
Many people earn massive money from bitcoin, and bitcoin is a very significant investment since they earned it from it, and if they lost their money, then bitcoin would be the worst investment, according to them. China banned cryptocurrency, and some other countries are also banning the bitcoin currency.
In India, the Prime Minister broadcasted that he would restrict bitcoin to a certain level. That means you can invest money in bitcoin as an asset, but you cannot do bitcoin sending and receiving, and there is a decision to prevent illicit activities.
El-Salvador is the only city or country that announces bitcoin as legal tender, which means people in El-Salvador can use it as fiat currency. So different countries have different rules and regulations for bitcoin investment. Some people think that bitcoin is good, and some think that bitcoin is worth it, but in this article, we will discuss why you should not invest in bitcoin.
Bitcoin introduction:
Bitcoin is a volatile digital currency that everyone around the globe can’t send or receive from anyone worldwide. Bitcoin’s all transactions occur on the blockchain platform, which is an open-source system that means many computers in the world are working behind it for smooth functioning. The price of bitcoin was less than a dollar at the initial stage, but the current value of bitcoin at the time of writing this article is 57,706 dollars, which is a very high value compared to the previous price history. Bitcoin touched 68,000 dollars on November 10, and it was the most prominent peak of bitcoin ever, and there are some expectations that the price of bitcoin will touch up to 1,00,000 dollars in the next year.
Five reasons for not investing in bitcoin:
There are the following five reasons for not investing in bitcoin given below:
- Volatile currency:- If you do not believe it, you can go to the auto trading Bot and analyze the price for one minute. Demand and supply of bitcoin depend upon other factors such as trending or viral news headlines, tweets, new government policy about cryptocurrency, etc. Bitcoin is a hazardous investment because many people lose the money that they invested in bitcoin.
- No clarity:- There is no clarity about bitcoin cryptocurrency, whether it is an asset or commodity. Before the fiat currency, people exchanged goods and services for goods and services because there was no fiat currency for transactions. To make the transactions easy, people started using gold and silver as the means of exchange, and then the government launched fiat currency to solve the transaction problems. After the launch of fiat currency, gold and silver became commodities, but there is no clarity about bitcoin, whether it is a commodity or an asset. In the recent announcement of PMO, bitcoin will be considered an asset in India which means you can only use it for investment but not for transactions.
- Unregulated currency:- Bitcoin is an unregulated currency, unlike fiat currency, because it works on a decentralized system. Fiat currency is regulated by the government, which means you can complain or get support if you face any problem. You cannot get your bitcoin back once you lose it. You cannot sue in court for your bitcoin back because it is an unregulated cryptocurrency.
- Illegal activities:- Since bitcoin is an open-source system, no one can see the personal information of the sender and receiver. Bitcoin gave birth to frauds, scams, money laundering, or criminal activities because the government cannot trace or track the sender or receiver. It is banned in some countries, and some countries restrict it to certain levels to prevent illegal activities.
- Understand the technology:- Do not invest in this digital coin if you do not understand the bitcoin technology. Many people had lost their money in bitcoin trading or investing because they did not know about bitcoin technology. Furthermore, Bitcoin is an uncertain cryptocurrency that means no one knows the future of bitcoin.
