A Bitcoin is basically an encryption key, kept in the ledger of a trader. Ownership of the encryption key entitles you to trade it for goods, services, or other types of cryptocurrency.
It is like the most hottest invention in the World that actually does not exist. Bitcoin is the digital currency which inspite of having many wonderful pros have a list of cons that cannot be overlooked, take example of Wanna cry!
Here are some reasons why you should not invest in bitcoins:-
1. It’s not real
Bitcoin is something that runs on mathematical algorithm. It’s the currency you cannot hold in your hands. Its value is based on that total interest in algorithmic functions and can vary with willingness of the market investors. It is not anonymous anymore. The user can be traced with the advanced technology like the founder of bitcoin was traced with the tremendous theft that he thought would be entirely anonymous. Digital currency is just a piece of code available on internet.
2. Unstable value
The bitcoin’s value can increase and decrease based on the market and its investors and it’s something to look up upon before investing. If it can rise so quickly, it can also fall in the same pace. With the recent increase in its value unlike the slow paced rise of normal currency, bitcoin is quite hazardous and questionable for daily exchanges and services. Not everyone lives in Venezuela , here bitcoin is the great medium of exchange.
3. It’s core users are still criminals and fringe figures
There is no denying the fact that the transaction done with the credit or debit cards is much better than one with bitcoins and gains you several rewards too. Because of this limitation, bitcoin is not prefered for daily trade and purchase thus making it’s power core users be those drug dealers or security preachers. For instance, the cyber-criminals who launched a recent wave of “ransomware” attacks known as Wanna Cry asked for payment in bitcoin.
4. Volatile nature
Bitcoin is prone to spectacular crashes from over a decade. In 2013, for instance, the currency went on a run to over $1,100 only to tank to $700 a few months later, and then bottom out near $200 in early 2015. There is no reason this couldn’t happen again.
5. Security preaches
Being a decentralized system, the potential of attack on the system that handles bitcoin is quite large. See the main example, wanna Cry ransomware in which the user’s systems were locked unless they pay a ransom that too in the form of bitcoin. Besides, cyberattacks are not the only security disadvantages it have. If it values decrease on any circumstance, the miners handling it will surely drop out thus making it more prone to security preach.
6. Not reasonable
There aren’t any reasonable ways to invest in bitcoin. I mean, the currency you cannot use for daily commodities or exchange is somewhat useless for most of the people out there. Moreover, it is not at all safe considering the recent attacks. It is more prone to liquidity and hackers.
7. Not everyone understands it
The most reasonable drawback of bitcoin is that not everyone has the power to understand what it’s all about. It;s out of the league of a common man and a misunderstanding or less understanding about the bitcoin can lead to terrible consequences. People might get the broader-stroke concept that bitcoin is a cryptocurrency, but they don’t understand the bigger picture of how it’s challenging monetary theory, or that bitcoin proponents are looking at new ways to secure data and currency transmission.
8. Lack of applications
We all know the fact that bitcoin has been invested by certain users with the idea that it’s value might give them some benefits in the future, but besides drug dealers and hackers be it’s sole users, it does not have much practical applications of why one should invest in it.