April 23, 2024

Seven reasons not to buy bitcoins

If you have so far avoided Bitcoin, perhaps you should stay away from it. And that's why.

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Bitcoin's bull market has returned. Of course, he will not fly up to $ 20 thousand in one night. In 2019, we no longer see a new historical maximum, but the bullish momentum has returned.

In late 2018 - early 2019 A lot of good news began to appear about the fundamental indicators of Bitcoin and cryptocurrencies in general. Some of them were so good that they were worrying why this was not reflected in the prices. However, the BTC price has risen this year and is afloat.

Finally, purchases prevailed over short sales.

If you’re a beginner or want to know what’s all aboutthis hype around Bitcoin (as it was at the end of 2017), then this information is for you. If you still have not invested in cryptocurrency and are now thinking about it, then let this serve as a warning to you.

If you are a crypto world veteran who met in 2018 with the negative reaction of those whom you lured into cryptocurrency, perhaps this time you should not agitate anyone.

Below I want to give seven honest reasons whyNow you should not buy bitcoins. If these reasons do not deter you - you can safely buy. If at least one reason bothers you, it is better to stay away. So let's get started.

Reason 1: Bitcoin price is prone to periodic sharp collapses

: BitNews

Bitcoin (and other cryptocurrencies) crashedmarket value of more than 80%. With Bitcoin, this happened three times. Over time, the price recovered and broke new records. However, periods of loss are always quite severe.

If such losses are too tough for you or you cannot wait for them, just stay away from Bitcoin.

Reason 2: Bitcoin is not an asset

An asset is what brings you money. Liability is what takes money from you. Bitcoin is neither one nor the other. Bitcoin is best understood as the best cash alternative. A means of savings instead of fiat currencies such as pounds, dollars and euros.

Owning Bitcoin by default will not bring you more money. People who expect to make money on Bitcoin bet either on growth or on a decrease in its value.

Reason 3: If you send bitcoins to the wrong address, you will lose them.

Many have lost their bitcoins due to such errors. They, for example, sent bitcoins to the address of Bitcoin Cash. So you can lose your money in an instant.

If you are so clumsy, it is better to stay away from cryptocurrencies for now. You may be interested in them and study the information, but do not invest serious money.

Reason 4: You need to invest in the safe storage of large amounts in bitcoins

Bitcoin is often bought on the exchange. Most people keep their coins on the exchange. Although this is not a good security practice, it’s normal if the exchange has a good enough reputation and you don’t have many coins. If you have a lot of coins, it is important to start your own cold wallet and store coins offline.

Reason 5: Mass adoption is still a long way off

Today the crypto world is talking enthusiastically about the massiveacceptance. But at the moment, the only mass adoption that is becoming a reality is the adoption of cryptocurrencies as a financial instrument. Financial markets are now adopting Bitcoin(and are considering adding other cryptocurrencies). But if we talk about the possibility of spending bitcoins in the real world, then this is still a long way off.

Bitcoin is likely to consolidate itself as a medium of exchange in the real world not earlier than after a few. Therefore, you should calm your nerves and wait.

No need to succumb to the fear of lost profits.

Reason 6: The true value of 1 BTC is 1 BTC

Traditional investors often ask the question: What is the true value of 1 bitcoin? They expect to receive a response in dollars, pounds or some other fiat currency. Therefore, for its short existence, we saw Bitcoin at $ 10, $ 500, $ 1000, $ 3.6 thousand, $ 6 thousand, $ 12 thousand, $ 20 thousand. Judging by the costs of mining, it should be difficult for Bitcoin to drop below $ 5 thousand. But it did it. This is because the price of Bitcoin is dictated by market forces in the form of buyers and sellers.

In fact, the true value of 1 bitcoin is1 bitcoin. Bitcoin is the money of the future. When you buy bitcoin, you buy bitcoin. You can only decide when to sell it or when to trade it. You cannot decide what its price in your local fiat currency will be at any given time.

Reason 7: Bitcoin still faces legislative challenges

Yes, there are still legislative difficulties. The ban issue has subsided a bit, but bitcoin and other cryptocurrencies will still have a lot of upheavals before governments fully recognize what they really are.

Some countries already have some lawsexist. Although some of them are positive, others, according to the crypto community, need to be reviewed. So the legislative challenges have not gone away and may affect the BTC market price.

If at least one of these reasons haunts you,stay away from Bitcoin for now. When passions subside and Bitcoin becomes as common as other forms of money, you can buy it and use it just like everyone else.

Finally, I hope you noticed that someissues were not addressed. For example, the statement that Bitcoin will collapse to zero. The possibility of bitcoin is already open to the world. The world cannot return to a period without Bitcoin.

There is nothing more to add.

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