People often ask others whether or not now would be an opportune time to invest in Bitcoin. Depending on who you ask, that questions will be answered with either “yes” or “hell no”. In the case of Forbes, a nice top ten list has been published as to why one should not invest in Bitcoin. When people need to tell you why you shouldn’t invest in something in more than five words, the question becomes whether or not you should believe them.
Some Interesting Reasons That Kind of Make Sense
One of the main criticisms people have against Bitcoin is the fixed supply cap. While 21 million BTC is plenty to go around – because it is divisible to eight points after the decimal – there have been rumours regarding possibly increasing the cap at some point. There is no need to create inflation in the Bitcoin world, as there are plenty of coins for everyone in the world. No one ever said every person in the world should own one full bitcoin to begin with.
A strange theory suggests that introducing inflation into the Bitcoin ecosystem could possibly make sense once mining digital currency becomes so expensive compared to the reward that miners will stop supporting the network altogether. Technically speaking, this could happen once all of the bitcoins are mined, which will take a few more decades. Or, if the Bitcoin price falls dramatically, some miners might rethink their position as well.
Regardless of whether one agrees with regulation or not, the lack of guidelines around the world can be seen as a hamper on Bitcoin growth. As long as digital currency remains in a “grey area” it will be difficult to gain the trust of consumers and merchants in most of the countries. Proper guidelines could give Bitcoin a more legitimate appeal in the long run, but only if those guidelines do not constrict growth like BitLicense is doing.
But the biggest reason Bitcoin might not be a good investment is because some people will buy Bitcoin, and see the price decline shortly after. Consumers have to keep in mind that obtaining Bitcoin from an investment point of view is a certain risk, just like trading assets, bonds, or anything else issued by the government or bank is.
The only difference is that Bitcoin is far more transparent as to which countries are buying and selling Bitcoin, and peer-to-peer trades are among the possibility. Once someone gets burned by a less fortunate Bitcoin investment, word of mouth spreads the message faster than anything else. Then again, that is a personal risk somebody took, and Bitcoin is not at fault for that.
Do You Really Need Someone To Tell You…?
In the end, it all comes down to this: do you really need someone to hold your hand every step along the way when it comes to making an investment? Then, by all means, invest in something the bank suggests to you, and see how that turns out in the end. Don’t blame the product or service you invest in, as no one is telling you to invest in the first place.
If you don’t feel comfortable to invest in Bitcoin, then please don’t even start. Any type of investment carries a risk, and Bitcoin is no exception to that. In fact, Bitcoin is never a guaranteed profit, less, or return. Never invest any money you can’t afford to lose. But if you don’t make an investment, don’t come crying afterwards about the money you missed out on either.
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.