Risk Free Bitcoin Investment

Risk Free Bitcoin Investment

The value of bitcoin depends on:

1.  The number of transactions using bitcoin.
2.  Currency crisis or stability.
3.  Its storage of value as digital gold.

Why buy bitcoins?

Bitcoin has positioned itself as a currency without fuss.  

No banks or fees are involved and users can reside anywhere in the world.

Just like any other currency or commodity, the price of bitcoin is led by supply and demand.  

But unlike government backed fiat currencies such as the dollar or sterling, there is a limit to how many bitcoins can exist.  

No more than 21m coins can ever be created, but the market is not likely to hit this limit for many years to come.

Just over 16m have been mined so far, but those worrying that this looks close to the cap should remember that mining becomes progressively more difficult over time.

Risk: Many consider Bitcoin’s meteoric rise to be a bubble and the Bitcoin price to be heavily inflated. The primary risks are:

1.) Bitcoin faces scaling issues. Currently, the Bitcoin blockchain can process roughly 7 transactions per second. For context, Visa can do 1000s. Without getting too deep into the technical details, the Bitcoin community is split over how to solve this scaling issue. A new method of computation has been proposed by some but others have threatened to copy and paste the Bitcoin codebase and start a rival coin, if this new method of computation is adopted.

2.) Government regulation poses a big risk. Both the SEC and EU have indicated their intention to regulate Bitcoin and Japan recently introduced some legislation to do the same. It’s unclear whether Bitcoin will be regulated as a currency and how governments will react.

3.) A few investors known as “whales” own enough Bitcoin to move the market at will. Chinese investors own a significant portion of Bitcoin.

4.) There aren’t many places you can actually spend Bitcoin while going about your everyday life. You can’t, for example, buy a coffee at Starbucks using Bitcoin.

So to know more about risk free bitcoin go Bitcoin investment

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