But there are some pros and cons of this investment because investment in cryptocurrency or digital money and investment with ordinary currency is different.
Bitcoin is the most well-known cryptocurrency nowadays. It used to be invented in 2009 by an unknown person “Satoshi Nakamoto”.
During its initial period, it is not famous because peoples are not acquainted with digital currency. Digital currency is different from regular currencies that we use in our day to day life.
We can carry our regular currencies in our pocket as coins and notes. But we can’t take Bitcoins in our pocket because it does not exist physically. It only stores in digital wallets as a line of code. We use this in only online platforms or online agency who accepts payment using Bitcoin.
What is an Investment?
Investment means to put your money and start a business or start something and wait till business grow. Once the business is well established then your investment amount is automatically high, Which is called returns from investment. Investment is sometimes profitable, and sometimes it gives a huge loss.
There are several platforms available where we can buy the Bitcoins with the exchange of regular currency. We can able to buy something from that person who accepts the payments through Bitcoin; otherwise, you can’t.
But invest your money in a cryptocurrency is sometimes profitable and sometimes not. Because these currencies do not exist physically, so can’t able to track this physically.
Investing in Bitcoin
Let’s talk about investment in Bitcoin. Bitcoin is a popular cryptocurrency and peoples are interested in investing their money in Bitcoin. But this type of investment is not similar to invest in real-world investment or invest in a physically present thing.
It means Bitcoin can’t exist physically. We cant it in our pocket or not hold in our hand like our regular currencies. It only exists digitally, so it also called virtual currency. Some peoples are belive that cryptocurrencies are our future. But there is no physical existence of these currencies.
The price graph of Bitcoin is very quick. It means it’s not steady. It fluctuates 30% in a day which shows upon a risk-taking factor which is in the case of Bitcoin. If you want you to know more about bitcoin, there are so many online platforms that provide information on these.
You just need to find the genuine website and most of the information will be provided in the Bitcoin Era itself. You can also refer to online videos or apps that provide information on this.
Finding the best website is always a tough task but if you do some homework or better research it can be as easy as it.
EX – let’s assume the price of one Bitcoin is 8 lakh Rupee in Indian currency. We cant its price tomorrow it maybe 6 lakh rupees or maybe 10 lakh rupees because no authority exists to control the price of Bitcoin.
Short term investment in Bitcoin is ok, but the investment in Bitcoin is not profitable for the long term because its price graph is unpredictable.
In the traditional investment process, we can predict the values of our investment, but in cryptocurrency investment, it’s not possible. We get the highest return value by investment in Bitcoins with the highest risk-taking factors.
Another downside of Bitcoin is, it is largely used for illegal activities mostly used in Blackmarket because it is untraceable. For international payments Bitcoins are best because if you are paying using Bitcoins than there are no service charges for it. There is no middle person present to manage the Bitcoin process no you need not pay any service charges.
Investment in Bitcoin as similar to investing your money as blindly. Because you don’t know what is the future of Bitcoin and you can’t predict the price of the Bitcoin.
So investment in Bitcoin is not effective. Investment in Bitcoin gives high returns with less period and risk full but returns in traditional investment is slow, and it’s steady. There is no risk in traditional investment. Additionally, you get tax returns.
So what do you think is Bitcoin worth it or not?