When there is a discussion on cryptocurrency likes Bitcoin the people tend to get divided into two camps one that understands the currency well and is enthusiastic booster the other who does not understand the currency well. But to be true Bitcoin really lacks in some areas, here are some area which one should consider before investing into this coin.
The traditional financial market provides strong consumer protection. If there is any credit card fraud of your account there are regulations to limit the consumer losses. Bitcoin or any other cryptocurrency lacks to give any such protection. If your bitcoin is stolen or lost there are no regulations to compensate that loss.
Bitcoins can be stored in two ways either you can store it safely in your own wallet with the private key safely preserved or you can rely on the third party wallet services.
Both the options are vulnerable to hackers and malicious attacks. You should ensure the safety of your wallet with back up scheme or good encryption system. A single mistake can lead to a big loss. There have been a number of instances where the digital financial institution has lost the client funds because of the security breaches.
To control the money laundering the federal agency has recently outlined some rules for the digital currencies. This is obviously a positive development for Bitcoin and other Cryptocurrencies. But bitcoin is extremely resistant to government regulations so it has gained so much favor from drug dealers and gamblers. Day by day it will become favorite for those who want to avoid government scrutiny. A time may come in the near future when the federal law enforcement agencies may find it as a money laundering machine and shut it down.
- Lack of functional use.
Bitcoin has already earned its name among black marketers and gamblers but does it have any use for conventional commerce? The bitcoin market may grow in the recent year and enthusiast may buy it with a hope that its price will increase. But even if their speculations are correct then also the market will see a limited upside.
Anyone who is still thinking to invest in this currency must understand that it is extremely risky to invest in this currency. Maximum chances are there that they may lose their whole money. There is not much potential left in it as it was a year back. It is always advisable to invest that amount of money which you can afford to lose. For more info click Infinity App Review.