Bitcoin Is No More A - 'Get Rich Quick"
Bitcoin

Bitcoin Is No More A - 'Get Rich Quick"

By Suny Ag | My Own | 6 Jul 2021


There is no doubt about the fact that everybody wants to be rich in a quick time. But the youth today is almost crazy to become rich by following the shortcuts to get rich quickly and ignore the risk. In fact, in the last few months, there has been an increase in the craze among the youth for investing in cryptocurrencies.

Investment in cryptocurrencies has increased with the speed with which cryptocurrencies have made investors rich in the past. In April this year, the price of bitcoin rose sharply to close to $ 66,000. At present, despite the decline, the price is running near $34,000.

Youngsters are running after cryptocurrencies, because the investment duration is very short, and the returns are very high. The number of people searching Google for investing in bitcoin is skyrocketing. But it also has its risks and most people have no knowledge or have incomplete information. Even I am one who knows nothing much about cryptocurrencies and how it works.

Investments in cryptocurrencies have grown from $200 million to $40 billion in the past year. This includes Bitcoin, Dogecoin, Ethereum. Most of the people investing in cryptocurrencies are young people in the age group of 18-35 years. According to reports, the number of people trading in crypto now mostly comes from America. To be precise, there are roughly 230 investors million in America, 150 million in India but only 2.3 million in the UK.

Here are the TEN major risks of an investment in cryptocurrencies

1. The faster the price of cryptocurrencies rises, the faster it falls. Most of the investors do not understand what is causing the fall and then they panic and sell cryptocurrencies at a loss. In the last two months, the price of bitcoin has fallen to less than half.

2. In some countries uncertainty about cryptocurrencies continues is always there because cryptocurrencies are not recognized. For instance, the Reserve Bank of India (RBI) has banned crypto and asked banks and Fintech companies to stop serving entities dealing in virtual currencies. In such a situation, there is a danger of its being declared illegal at any time. Despite this, if you invest in it, the risk remains.

3. Governments believe that there is a danger associated with cryptocurrencies as people might use it for money laundering. And also, this could be a security risk for that country. Hence crypto has not received regulatory approval in many countries.

4. The movement of crypto also news based on any country, person or incidents anywhere in the world. For instance, the tweets of Tesla owner Elon Musk saw a huge fall in bitcoin’s price. And this could well be a big financial risk for small investors.

5. Threats related to cybersecurity and the uncertainty by use of cryptocurrencies is also a big reason, which can cause loss to small investors. More so, because cryptocurrency transactions are done through a code and password. And if you forget your password, the entire amount invested might get lost.

6. People in India are investing in cryptocurrencies through apps like WazirX, Unocoin, CoinDCX, Zebpay, Coin Switch Kuber. But right now all the conditions regarding investment in many of these apps are not clear, so the risk always remains for investors. Recently WazirX government of India notified them regarding many illegal transactions.

7. The biggest disadvantage of cryptocurrencies is that there are no rules for them. There is no country, government, or institution in the world apart from EL Salvador to some extent to control it, due to which its price sometimes increases very much and sometimes falls very much, in such a situation it is risky to invest in it.

8. There is a risk of scams and fraud in cryptocurrencies. According to the US Federal Trade Commission, from October-2020 till May-2021, about 7,000 people have faced fraud in dealing with cryptocurrencies. Due to which people have lost billions of dollars.

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Suny Ag
Suny Ag

A marketing professional, writer, and photographer. Love traveling to distant places. I write with the same username and profile picture on other sites like Read.cash and Peakd, etc.


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