Every investment has to undergo deliberation of all aspects of business including capital, expenses, foreseeable crisis, and potential income. There is digital currency that is gaining popularity nowadays called Bitcoin. Its operation is independent from government authorities. Thus, it gives the question: is Bitcoin for investment safe?
If you are considering putting your money in cryptocurrency, here are things that will let you know if Bitcoin for investment is a safe choice:
- Bitcoin price is volatile.
- This means that the Bitcoin exchange rate changes on a daily basis. Fluctuations in the rate are due to bad press that scares users. Some associated it with high-profile dealers and the pending regulation of the government over Bitcoin.
- Bitcoin is valuable.
- The principle applied in determining the value of gold is the same for Bitcoin. It is considered scarce and beneficial at the same time. Limited supply results in high price demand.
- Bitcoin is now taxable.
- In 2004 Bitcoin was issued guidance on tax by the Internal Revenue Service (IRS). These tax payables depend on the capital gains. Since Bitcoin is considered valuable, paying taxes can be challenging and complicated.
- Bitcoin is pseudonymous.
- No one really knows the people behind the creation of Bitcoin. There are speculations that the name Satoshi Nakamoto is a collective name for a group of people. But the identity of Satoshi Nakamoto remains a mystery. There is no proof given to justify that the speculations are true.
- Bitcoin is digitally based.
- The world is fast-changing including business industries. They are becoming more reliant and dependent on technological advancement of the internet. Bitcoin transactions are secured and safe even though published in the internet making it available and open to everyone.
- Bitcoin is fast and flexible.
- Since Bitcoin is an independent currency, a middleman is not required to complete transaction including money transfer or purchasing goods that you can do anytime and anywhere. Transactions are real time compared to bank transfers that might take days.
Investments are created for financial wealth. If you take the risk of putting your money in Bitcoin for investment, it means securing your future after retirement.