Are You The Kind Of Person That Should Invest In Bitcoin?


Are You The Kind Of Person That Should Invest In Bitcoin?

 


The concept of cryptocurrency can be challenging to understand when we first come across it. For many of us crypto is a vague concept that we tell ourselves we are going to learn someday. When we finally do decide to put our time and energy into learning about crypto, we get barraged by multiple complicated concepts that we don't find it easy to grasp. However, after some time passes in confused search for the meaning of all this we finally begin to form an understanding of the whole concept of cryptocurrency and associated subjects. If you have already gone through all of that then you probably are well aware that Bitcoin is regarded, by many, as the soundest cryptocurrency to invest in. Let's say you have experienced everything mentioned before and now want to invest in Bitcoin. Should you go ahead and do it? Should you part with your hard earned and familiar cash to buy a virtual currency that every major financial publication is ready to tell you is some kind of a passing fad? If you are in this situation you are reading the right article because I intend to address your questions presently. First of all I should make it clear that, personally, I am a Bitcoin enthusiast who thinks Bitcoin is the future of internet money, therefore, what I am about to say might be biased in some way. That having been said, I will try to analyze the subject at hand as dispassionately as I can.

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If you wonder whether Bitcoin is really the future of money or simply a scam you are not alone. Thousands of people around the world ask themselves that question everyday. As to Bitcoin being a scam, I can hardly understand how that notion is still being floated. After so many years have passed and so many people have reviewed Bitcoin's code, the idea of it being a scam is, as far as I am concerned, out of the question. As regards the other issue, namely that of Bitcoin's future as the most dominant currency, I must acknowledge that there are some legitimate doubts. At this point you might be wondering, and with good reason, when I am going to address the question that I have put in the title of the article: "Are you the kind of person that should invest in Bitcoin?" Well, I have already addressed that to some degree but now let me be more precise. Whether you should invest in Bitcoin or not isn't a question to be answered by anyone other than yourself.

 

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That doesn't mean that this article is completely useless, though. Read on and you will, hopefully, find some useful information that might help you have a clearer vision of Bitcoin's pros and cons. Bitcoin offers a kind of electronic peer-to-peer payment method that was non-existent before its creation. This quality is often underestimated by those who attempt to describe Bitcoin. Before Bitcoin was created, peer to peer transactions were only possible by using physical cash like banknotes. For hundreds of years people used, usually satisfactorily, all kinds of commodity money that they could use between themselves in a peer-to-peer way. With the advent of the electronic age and more specifically the World Wide Web, money transactions naturally had to be adapted to the emerging electronic environment. Several kinds of systems for online transactions were devised but they were all centralized and relied on the users trusting some sort of a central authority that could facilitate transactions and resolve possible disputes. The need for trust meant that those systems weren't as secure as Bitcoin. Bitcoin's decentralized ledger is kept by thousands of separate nodes that check new blocks to see whether they are authentic or not. This is a huge advantage over the centralized types of electronic money.

 

We have gone through some of the characteristics of Bitcoin but if you want to know whether it is a good option for you that information is not enough. If you want to know whether you are the right person to invest in Bitcoin you should ask yourself some deep questions the answers to which can determine your level of aptitude as a Bitcoin investor. The first question that you should ask yourself is this: do I have commercialistic tendencies? If the answer is positive then Bitcoin is probably not the best choice for you. The idea of buying bitcoin in the hope that you are necessarily going to make astronomical amounts of money is obviously false. Bitcoin is more than just a tool for rapacious speculators.

The other obvious question is: do I really understand the risks associated with Bitcoin investment? Obviously Bitcoin is still in very early stages of its life, which means some degree of volatility is expected in its price. We all remember when the price of bitcoin had surpassed 60 thousand dollars in 2021 and came down sharply later at some point. Money invested in Bitcoin can easily lose a lot of its value rapidly, therefore before investing in Bitcoin we should ask ourselves whether we are ready for such circumstances.

The next question to ask ourselves before investing in Bitcoin would be this: why am I doing this? If you want to invest in Bitcoin symply to impress your friends or because you don't want to be left out of something that all your friends are talking about then you should think twice before doing so. You should really have far better reasons than those if you want to invest in Bitcoin.

 

Conclusion

Learning about yourself is as important as learning about Bitcoin when it comes to the question of whether investment in it is the right thing to do. In order to know ourselves we should ask ourselves difficult questions and try to answer them correctly. What other questions do you think we should ask ourselves?

 

 

Disclaimer:

I am not a financial advisor. Research deeply before any investment. Only you are responsible for your decisions. This piece was written for entertainment purposes only.

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Weslysosnyder
Weslysosnyder

I am a creative person who can write interesting articles about cryptocurrencies and other things. This is the link to the avatar image: <a href="https://www.flaticon.com/free-icons/man" title="man icons">Man icons created by Freepik - Flaticon</a>


CryptoInsightsByMeForYou
CryptoInsightsByMeForYou

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