Bitcoin investment: The Advantages and Disadvantages
If you’re interested in a bitcoin investment, in an effort to double your initial investment but are a little hesitant to put your money where your mouth is, simply continue reading to discover some of the unique advantages and disadvantages of investing in Bitcoin. The advantages and disadvantages of investing in Bitcoin:
Bitcoin
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The advantages of investing in Bitcoin:
- You could potentially double or triple, your initial Bitcoin investment
One of the reasons why Bitcoin is such a popular investment option is that you could potentially double, or triple your initial investment within a short period of a couple of years. If you’re frustrated by earning 1-2% interest on your bank accounts each year and are looking for an investment opportunity, which could potentially make you rich, Bitcoin could be the investment opportunity that you’ve been searching for.
If you had purchased $100 worth of Bitcoin back in 2010, your small investment would now be worth around $28,341,266. However, early adopters of the Bitcoin such as the Winklevoss twins, who have made over 1 billion dollars investing in Bitcoin, claim that there’s still time for new investors to make a fortune with Bitcoin as they don’t foresee Bitcoin crashing anytime soon.
- Bitcoin is a unique product, which has a mass appeal
Bitcoin is unlikely to decrease in value in the near future as it’s a unique product which has a mass international appeal. Bitcoin was created to provide a secure, anonymous way for individuals to pay for goods and services, without having their information compromised by a third party such as a bank or a credit card company. Both of which may try to sell on their clients’ personal information, such as spending habits to other parties.
While investors are now able to invest in a wide variety of cryptocurrencies such as Ethereum, ZCash, Dash, Ripple, and Monero, none of Bitcoin’s competitors have managed to dethrone Bitcoin as the world’s number one cryptocurrency.
- You may be eligible for a tax break if you invest in a Bitcoin IRA scheme
While it’s wise to purchase Bitcoin which is not tied to an IRA retirement scheme, should you choose to invest in Bitcoin as part of an IRA account, you may be eligible for a variety of lucrative tax breaks. Which may mean that you may have a slightly higher disposable income to spend on investment options such as Bitcoin.
The disadvantages of investing in Bitcoin:
When you invest in a cryptocurrency there is a chance that your shares may go down in price.
While countless investors have already made a fortune by investing in Bitcoin, investments can be volatile and you have to be comfortable with the fact that you may end up losing a proportion of your initial investment. As an example, Bitcoin could crash in 2 days, 2 months or 2 years time or Bitcoin could lose some of its value as a result of another cryptocurrency becoming more popular.
So if you’re interested in investing in Bitcoin, it’s highly advisable to weigh up the advantages and the disadvantages associated with investing in Bitcoin before making your first Bitcoin investment.
Author: Anwar Hossain
