When the central bank in bank accounts and limited the amount of money that would be withdrawn from bank accounts it created a massive uproar that was felt round the world. If consumers did not have usage of money how could they buy and sell what exactly needed seriously to keep on in our modern world? The stark reality is they can not so consumers around the world started to consider safer alternatives to fiat currency. Fiat currency is currency that’s no tangible value aside from what the government assigns to it.
Consumers are looking for a way to store their buying power to protect themselves from having bank accounts frozen for indefinite periods of time. Lots of people Spice started trading in Bitcoins. This can be a crypto-currency this means it cannot be easily counterfeited but before anyone starts buying into this new currency it would be prudent to know the risks.
Bitcoins are not issued by any central bank or government so there’s no accountability whatsoever. If you’re dealing with Dollars,Euros or Pounds you have the assurance that the government behind it will honor the debt while Bitcoins don’t provide any guarantees at all. The fact no body truly knows who made this currency so there’s no way of knowing whether maybe it’s stolen right from under our eyes.
These Bitcoins are stored in a very digital wallet that may be encrypted on your computer. While this will provide a sense of security if your computer is lost your Bitcoins are gone as well. It’s not like a charge card where you are able to get a replacement and keep on like nothing has happened.
As the security of this currency is just a concern undoubtedly the greatest worry is the worth of it. The perceived value of a Bitcoin can alter in a minute and unlike fiat currencies which can be backed by hard assets owned by a nation in case a Bitcoin value drops you have nothing of value at all.
There are certainly a few exchanges around the world that sell and buy Bitcoins, but you shouldn’t purchase them thinking they will rise in value. They are an electronic commodity which some would classify as a “fad “.Tomorrow it might lose all its real value and never recover.
So to recap the risks, you may not have any real security with Bitcoins since they will be not provided by way of a government. The value if highly volatile and could be reduced to zero in a heartbeat and the simple proven fact that the currency has only been with us for a few years shows it’s not demonstrated to be reliable.
If you’re looking for a way to preserve value then precious metals like gold,silver and platinum may be more beneficial since they’ve been useful for centuries as a moderate of exchange.
As it pertains to investing you ought to never make rash decisions but weigh the risks and potential payoff and remember that there surely is no sure things in regards to digital currencies like Bitcoins so approach at your own risk.