The cryptocurrency Bitcoin has been an increasingly popular asset for serious traders around the world. But because the digital coin and the technology are relatively new to people, being established only in 2009, there are still divides Top Brokerage Firm that make some other traders think if Bitcoin is really worthy investment. There are, indeed, Bitcoin pros and cons.
In this article, we will quickly help you make up your Online Stock Brokers mind by giving you the most important pros and cons of the top digital token for the world. Check them out!
Bitcoin’s price is more comparable to gold than a foreign exchange asset. The pricing is outside what would be considered as reasonable for a traditional altcoin.
Another great similarity it shares with gold is that it may never lose its intrinsic value. Bitcoin will probably never lose devout community that’s ready to promote and trade Bitcoins. It’s the first digital currency ever and the proof-of-concept for the whole community that supports it.
On the flip side, though, Bitcoin’s price experiences wild fluctuations. The current pricing bubble will not last forever. It will likely find a more stable and sustainable level in the future.
Prices will still go up
It is highly likely that the value of the digital currency will go up even higher before it reaches a 21 million units, which is the number of all Bitcoins to be produced ever. According to some analysts, Bitcoin will have a market cap that’s higher than $1 trillion by 2025.
One of the main reasons why Bitcoin was created, at least for the early investors, is the dissatisfaction brought about the monetary markets. The Bitcoin network is decentralized, which means it doesn’t rely on any central bank or fiat currency for anything. You can use Bitcoin as a hedging instrument against the depreciating value of fiat currencies.
Bitcoin exists because of a complex mathematical equation. It has nothing more than a hashcode address, a set of encryption keys, and transaction record. The public distribution ledger, called the blockchain, has all of these.
In simple words, Bitcoin is nothing more than a computer code, unlike currencies that ride on the back of something real as they derive their values.
That means that the digital currency is only worth what the buyers are willing to pay. If worse comes to worst, it’s possible for Bitcoin to eventually become worthless.
Just like any other financial instruments, Bitcoin’s price has its fair share of volatility. There are wild and sudden price swings, and its peaks and valleys are steep and deep. A slip of more than 40 percent in its price is not rare.
Since its establishment, the cryptocurrency world has given birth to many other digital currencies after Bitcoin. There are many that are very similar to Bitcoin while others offer new functions and features you cannot find in the OG cryptocurrency.
That means where Bitcoin fails, there are many newer cryptocurrencies that succeeds. It’s not impossible to imagine a new and better cryptocurrency to dethrone Bitcoin in the near future.