Risks and Rewards
In every situation, there will always be the other side of the coin. In a simple flip, what once was tails can now be a head. Now speaking of coins, investing in Bitcoins and becoming a bitcoin miner also have pros and cons. In a time where investing in Bitcoins has become a rising sensation, there is a big possibility that in a single flip of chance, what once was a reward can now be a risk.
When it comes to the advantages of investing in Bitcoins and even becoming a btc miner yourself, the first evident and common pro of this is that bitcoin mining is more open and easily accessible to all people. With this, one can have a wider and larger reach in making transactions such as receiving and giving bitcoins. A person just needs a Wi-Fi connection and computer in order to transact bitcoins. But, due to the fact that there is a rise in the interest of investing in bitcoins, people have started to compromise public Wi-Fi connections. This is where the risk comes in. People hack into public Wi-Fi connections in order to access a user’s device to mine for Bitcoin. Meaning, not only that the user is at risk of losing the bitcoins he once had but he is also at risk of having his device slow down or worse, having his device overheat and eventually destroying it.
Back to the rewards. The btc miners are free to produce and attain their own bitcoins since bitcoins are not controlled by any central organization or authority. Transactions of bitcoins are also not supervised which is, obviously, a huge risk too. The joy of transacting without additional fees and third-parties such as banks have a downside of not having your bitcoins protected. Also, even though a person has his own bitcoin wallet, there is still a risk of having it accidentally deleted.
Believers of Bitcoins say that the higher demand and interest of people on bitcoin could eventually heighten its value as well which is why at present, the value of bitcoin is significantly almost the same as that of gold’s. Although Bitcoins have a high value which attracts a lot of users nowadays, what’s risky about this is that its value can fluctuate. Compared to all other trusted and known currencies that also regularly fluctuate such as the US Dollar and Euro, Bitcoins seem to be more unstable. Bitcoins can actually deflate in value at times when people put less interest, attention and trust in it. Another possible reason is the inevitability of technical glitches occurring.
So when it comes to putting Bitcoin investing into consideration, it is best first to check the risks and rewards that you will go through and if you are really up and ready for it.