With the emergence of cryptocurrency the question - is cryptocurrency a good investment has become a buzzword. Almost everyone, especially the little investors have a natural inclination for asking this particular question.
To quench the thirst of those, we decided to come up with a write up narrating the pros and cons of cryptocurrency investment. If you are one of those curious persons, stick to us till the end to have the long-sought answer.
Is cryptocurrency a good investment?
Before we reach a final verdict, we think it is better to give you an insight of cryptocurrency investment. Otherwise, we may appear to be partial in our decision.
Why should you invest in cryptocurrency?
The reasons for which cryptocurrency has been at the top of popularity to a share of world people are:
How much currency you buy, sell, swap, lend is saved on the blockchain of the cryptocurrency that anyone can check at any time. The calculations are presented in a way of spreadsheet where the update of every moment is displayed.
Here the interesting fact is that you can just see the amounts but can never trace the addresses among which the transactions are taking place.
On the other hand, when you invest in a bank or the stock market, the ledger is never displayed publicly. Only a few people (officials) have access to that and they can trace the persons among whom transactions have taken place.
Again, it is possible for them to edit the history with a devil thought in mind although such an incident is rare.
No, we are not saying that bank checks are completely insecure, rather we mean that the security level of cryptocurrency is far tougher.
A transaction of cryptocurrency takes place only when the unique code of the sender and the receiver matches each other. Most crucial fact is that the code is so lengthy that it is never possible for anyone to guess the code and make attempts to hack your account or the transaction.
Another fact is that neither the sender nor the receiver can trace each other. Even the miner who will be an approver of the code matching, can’t trace you and your peer. This guarantees anonymity to the highest extent.
Unlike the government or bank currencies, it is impossible to produce more and more cryptocurrencies. The first and the foremost reason is the toughness of its production. Then, there is a huge cost behind a good computer set up and electricity bill.
As the production is limited so there is a guarantee that there will be no inflation although the value may jump or fall.
No middleman and commission
What if you want to send a huge amount of USD to your family who are currently living in Bangladesh?
You first of all, will deposit the money to a bank account and the bank as a middleman will help you reach the amount to your family. And, for this you will have to pay a fixed commission to the bank, right?
Thanks to the creator of cryptocurrency as no such issue is involved in its transaction. With cryptocurrency you can send any amount to any corner of the world at any time in an instant without paying any kind of fees
Why shouldn't you invest in cryptocurrency?
The salient factors for which we do discourage you to invest in cryptocurrency are:
Unlike the stock market, cryptocurrency is much more unstable. The value, whether will rise or fall you can never figure out as there is no data in your hands.
If you are lucky enough the value may rise beyond your expectation making you a millionaire in an instant. At the same, when the value falls, it leads you to the ultimate path of bankruptcy.
In short, investment in cryptocurrency is just like gambling whose result you never predict, you can just have faith.
However, there is still some ray of hope for you as half of the Americans think that making an investment in cryptocurrency has been proven to be safe for them. This might be something inspirational for you!
Absence of a responsible figure
Before you become a shareholder of Apple Inc. you already know who the founder and controllers are, right? And, those personalities just can’t play with your investment in their own way because of laws.
Apart from rules and regulations, Apple has a name and fame globally that the company will never want to defame. Therefore, even if the market price of Apple’s share drops, there will be a limit.
In case the price drops significantly, you already know whom to protest against. Then, there are law enforcement agencies that will come forward to bring out a reasonable explanation of the loss for you and your peers.
But, in the case of cryptocurrency, you never know who the founder and controllers are. They are just lay figures for you. Even the law enforcement agencies have nothing to do with your loss as they had been warning you against the risks of playing with cryptocurrency.
Lack of information
Before you make an investment in the stock market or deposit money in a bank for fixed years, you are aware of how the banks and share sellers are going to use your money and then refund you with a huge interest.
Things are not the same with cryptocurrency, except for a few people in the world, none knows the actual way of cryptocurrencies’ operation. You will never learn how your investment is multiplied or how it is minimized.
It’s just an unknown destination!
To sum up, there is no specific answer to the question - is cryptocurrency a good investment or not. There is basically a proportionate combination of prospect and risk. So, if you have no major financial drawback, we would like to suggest you take the risk, as the proverb says - no pain, no gain.