When Cyprus’s central bank froze bank accounts and reduced the amount of cash that could be withdrawn, it sparked a global outcry. How could customers buy and sell the products they need to survive in today’s world if they didn’t have access to money? Since they can’t, customers all over the world began looking for safer alternatives to fiat money. Flat currency is money with no intrinsic value other than that which the government assigns to it.
Consumers are searching for a way to store their purchasing power to avoid keeping their bank accounts frozen indefinitely. Many people began to trade Bitcoins. Since this is a crypto news, it cannot be easily counterfeited. But, before investing in this new currency, it is important to consider the risks.
There is no transparency since bitcoins are not distributed by any central bank or government. When dealing with Dollars, Euros, or Pounds, you can rest assured that the government is behind the currency, while Bitcoins provide no such assurance. Since no one knows who created this money, there’s no way of knowing whether it could be robbed right in front of our eyes.
These Bitcoins are held in a digital wallet on your machine that can be encrypted. Although this will give you a sense of protection, if your machine is stolen, your Bitcoins are also gone. It’s not like a credit card, where you can replace it and go ahead as if nothing happened.
There are a few exchanges that sell and purchase Bitcoins around the world, but you should not buy them expecting them to appreciate. They are a digital product that others consider to be a “fad.” It could lose all of its real value tomorrow and never recover.
When it comes to investing, you can never make rash decisions by crypto news; instead, consider the costs and possible rewards, and keep in mind that there are no guarantees for digital currencies like Bitcoins, so proceed at your own risk.