When the Central Bank of Cyprus blocked bank accounts and limited the amount of money that could be withdrawn from bank accounts, it caused huge riots around the world. If consumers didn’t have access to money, how could they buy and sell the things necessary to move forward in our modern world? The reality is that this is not possible. As a result, consumers around the world have looked for safer alternatives to fiat money. Fiat currency is a currency that has no material value other than the government-assigned currency.
Consumers are looking for a way to save their purchasing power and prevent bank accounts from being frozen indefinitely. Many people have started trading bitcoins. It is a crypto currency, which means it cannot be easily counterfeited, but before anyone purchases this new currency, it is advisable to understand the risks.
A central bank or government does not issue Bitcoins, so there is no liability. If you trade in dollars, euros, or pounds, you can be sure that the government will pay the debt behind it, while bitcoins offer no collateral. The fact that nobody knows who made this coin, so there is no way of knowing if it can be stolen before our eyes.
These bitcoins are stored in a digital wallet that can be encrypted on your computer. This should give a sense of security when the computer is lost. However, your bitcoins have also disappeared. It is not like a credit card where you can get a replacement and continue as if nothing has happened.
While the security of this currency is by far a problem, its value is the primary concern. The perceived value of a Bitcoin can change instantly. Unlike the fiduciary currencies guaranteed by a country’s physical activities, a value has absolutely nothing if a Bitcoin value falls.
Some exchanges like around the world sell and buy bitcoins, but you shouldn’t buy them because they believe they will add value. It is a digital product that some would call “fashion.” Tomorrow it can lose all its true value and never recover. If you wish to buy or sell bitcoins, visit this website at https://bitcoinscircuit.com/one of the most popular exchanges for these coveted coins.
To summarize the risks, you don’t have real bitcoin security, as any government does not provide them. The value is very volatile and can be immediately reduced to zero. The mere fact that the currency has been in circulation for a few years shows that it is not reliable.
If you are looking for a way to add value, precious metals such as gold, silver, and platinum may be more beneficial as they have been used as a medium of exchange for centuries.
When it comes to investing, you should never make hasty decisions, but evaluate the risks and possible payments and remember that digital currencies like bitcoins are approaching them, then approaching them at your own risk.
