The risk is a part of any investment, but it is better to calculate them in detail before involving yourself
with it. Bitcoin is the hot topic of the time; everyone wants to be a part of this game of currency despite
the fact that they know very little about it. Many people think that it is investment in stocks.
There is so much that we still do not know about bitcoins, many analysts from around the globe claim
that they cannot review bitcoin as they are unaware of the ecosystem.
1. DECENTRALIZED
We always complain about what the government is doing and what not, but the fact that there is a
sense of security when the government is involved in an affair is often ignored.
Bitcoin is not regulated body any single body or administration which means there is no one to be
blamed or set accountable for when something goes wrong. Bitcoin is a peer-to- peer dealing which
means you are your own savior and foe.
2. MERCHANTS COULD BOW OUT OF ACCEPTING THE VIRTUAL CURRENCY
Here is a question, why do we earn? To buy us the stuff we need, right? And what if you have a lot of
money but cannot buy anything from it? Now that would be an excellent example of worthless!
Few merchants are lining up to accept Bitcoin as a mean of payment but once they back off the value of
this currency will fall immensely.
3. CYBER ATTACK
Bitcoins are safe in the wallets that have been introduced, but there is still a window for cyber attack.
Investing so much and then coming to a point when you realize a single click took all that away is
something nobody wants.
4. RETAIL INVESTORS CAN BAIL OUT OR PILE UP
Bitcoin has all it`s worth because of it rapid popularity and involvement of retailers. But there is this
thing with retailers involved in any investment, they analysis less and work on their emotions and feeling
more. I am not saying everyone works that way, but most of us do.
Now, everyone is interested in investing in this new form of currency, but once people start changing
their mind, there will be a serious setback to the investors.
5. PRONE TO FRAUD
As there is no authority involved in this form of currency exchange, frauds are drawn to it. It is just you
and that anonymous other that are involved in transactions. What do you know about the person
behind the screen is very little.
Just a suggestion, do not be a part of the herd because what goes up, might fall down.
Author Bio: Sarah Smith has been a personal finance author for the last five years. She is also an
independent and very passionate finance and investment advisor. She regularly posts
at www.personalincome.org.
