On January 7, bitcoin surpassed for the first time in history the barrier of $ 40,000. Due to the interest generated by the news, many began to wonder if it is still a good time to invest in bitcoin or if, on the contrary, it is too late for it. Along the following lines we analyze some of the pros and cons of buying bitcoins in 2021.
First of all, it is important to note that this This article is not intended to offer investment advice. As in any investment, the price of the asset can go up or down in an unpredictable way, so your capital is at risk.
Pros
- One of the points Bitcoin’s strengths is its extreme security. Being based on a chain of blocks or blockchain, all transactions carried out are verified by all participants of the network. Once the data is part of the blocks of the chain, it cannot be modified, which guarantees the security of the system.
- Another point in favor of investing in bitcoins is the ease with which we can do it. A while ago it was somewhat complicated, but over the years there are more and more platforms that facilitate the purchase of bitcoins. Today, companies such as PayPal or Square allow buying Bitcoins from their platforms, democratizing access to the cryptocurrency.
- On the other hand , It is worth highlighting aspects such as the speed of money exchanges and the low transaction fees. These are advantages that make bitcoin a very interesting option for time to carry out high-value international transactions: the rates to pay are much lower than those applied by traditional banks.
- Finally, there are many experts who affirm that the value of bitcoin has not yet reached its ceiling. In fact, throughout the last weeks different analysts have commented that the value of bitcoin could grow significantly during the next or year.
Cons
- One of the biggest weak points of buying bitcoins in 2021 is the extreme volatility of the cryptocurrency. It is a little or no predictable market, so it is important to be aware of any news that may affect the value of bitcoin to minimize losses and maximize profits.
- Of course, there are many who see bitcoin as a safe bet long-term and expect the value of the cryptocurrency to multiply over the next few years. This investor profile made the HODL concept fashionable, which invites you to accumulate cryptocurrencies without the intention of selling them in the short term.
- Another of the cons of bitcoin is the null regulation of the cryptocurrency , which operates outside the main banks or governments around the world. In addition, its acceptance is quite limited at the moment, since we cannot pay with bitcoins anywhere. Even so, more and more companies accept bitcoins as means of payment, mainly in the technology sector. For example, today it is possible to pay with bitcoins in many VPN services.
- Finally, It should be remembered that there is the possibility of losing access to our portfolio . Although this is unlikely, people all over the world have lost access to their bitcoin wallet due to forgotten passwords or data corruption on a hard drive. In fact, there are several known cases of people who have become millionaires due to the growth of bitcoin and who cannot access their fortunes due to these types of accidents.
Having discussed the main pros and cons of investing in bitcoin in 2021, it is important that you make your own decisions and consult with a financial advisor if you have any questions. We assume that bitcoin will continue to give a lot to talk about over the next few months, so we will closely follow the evolution of the cryptocurrency .
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