Is Investing in Bitcoin worth it?

Bitcoin is the world's first cryptocurrency invented by a mysterious figure named Satoshi Nakamoto in 2009. Initially, it was not popular until 2017. Once it hit the value of around $20,000, it became well known worldwide. Some investors bid their money into it, thinking it will make them filthy rich. Others refrain from investing in it due to its volatile nature. But one thing was clear: its reputation as the only internet money was changing. It was on its way to becoming the best investment of the decade, and with growth and popularity, it was getting harsh criticism.

In the December of 2021, Bitcoin is all high value around $63000; the news set off a worldwide debate of whether one should invest in Bitcoin or not and can Bitcoin cause a financial crisis? Investors, economists, business owners, government, traders, and central banks worldwide started mooting over this. Some were talking about the legalization of Bitcoin; others were not a fan of that idea. The topic of Cryptocurrency and Bitcoin has become a talking point. With all these different opinions, it has become highly complicated for a novice to investing in Bitcoin. However, for new investors, there are platforms like Bitcoin Era to have safe and secure trading or investments.

Pros of Investing in Bitcoin

1. Possibility of high returns: One thing that makes Bitcoin so famous among investors is its possibility of giving a high return. According to the data YCharts published, Bitcoin is the best investment this decade. It has given a return of 230.6% in the previous decade. Bitcoin has given investors high returns for a long time. The possibility of becoming filthy rich subdues the fear of losing everything in the investor's psyche.
   
   
2. The User's anonymity: For some who do not understand how a transaction in Bitcoin works, every bitcoin transaction creates a block. Every block merges with another block and creates a blockchain. This blockchain technology saves bitcoin from any fraud. Because of blockchain technology, it is not possible for the previous transaction to trace back to the users. 
   
   
3. Decentralized: One of the main advantages of Bitcoin is that the central banks around the world do not regulate this, making it decentralized. Suppose you own a business and profit from it and invest your money. If your business fails and you suffer bankruptcy, all your assets will freeze. But due to Bitcoin being a decentralized asset, your investment in Bitcoin stays the same. Also, because the central bank does not regulate cryptocurrency, its profit is not taxable. However, countries like Canada are imposing a tax on it now.
   
   
4. Liquidity: Bitcoin is not physical money, so there is no money printing is involved. As a result, making transactions has become more accessible. The government does not regulate it, so the money does not go through banks, so the transactions are hassle-free.

Cons of Investing in Bitcoin

1. Volatility: One of the biggest concerns experts have about Bitcoin is its volatility. The value of Bitcoin goes up and down in a short period. Various factors contribute to its volatility, one of which is its scarcity. When Satoshi Nakamoto created this internet money, he or they limited the number of Bitcoins to 21 million. Meaning one day, every Bitcoin will be mined; as a result, the value of Bitcoin will be continuously increasing. But also, as Bitcoin is not a legal tender, its value depends on its demand in the market, so the market reputation of Bitcoin is essential. As a result, any news can be a cause of the serious decline in Bitcoin’s value.
   
   
2. The government does not regulate Bitcoin: The Central Banks around the world do not regulate cryptocurrency, which is why a lot of illegal transactions are done by cryptocurrency. Bitcoin is used in money laundering and terror funding, a massive concern for governments worldwide.
   
   
3. Use in limited: One of Bitcoin's most significant disadvantages is its low acceptability. There are very few companies that accept Bitcoin as a mode of payment which makes investors and traders worldwide nervous. Initially, no one was accepting Bitcoin as payment, but companies worldwide are taking it after seeing its growing popularity. Even in late 2021, El Salvador became the first country that accepts Bitcoin to be a legal currency. The incident only contributed to the massive hike.

Conclusion

According to some experts, Bitcoin is a new reality, and it is going to stay. Others disagree and argue that with time, Bitcoin may not sustain the demand and end up failing miserably. Bitcoin mining is also harmful to the environment. But at the end of the day, at this moment, Bitcoin is rising high. And investors are making the maximum profit out of it. So at this point, our advice would be to invest in Bitcoin, better late than never. However, it has specific issues, but it is accepted globally regardless of all the criticism.