Important Factors to Consider Before Buying BitcoinsPosted by Kjeldsen Bossen on February 27th, 2021 When the central bank in Cyprus froze bank accounts and limited the volume of cash that might be withdrawn from bank accounts it created a massive uproar that was felt around the planet. If MENA crypto news at mena.news did not have access to money how could they buy and sell the things necessary to have on in our modern world? The truth is they cannot so consumers around the world started to search for safer alternatives to fiat currency. Fiat currency is currency that has no tangible value aside from what the government assigns to it. Consumers are interested in a way to keep their buying power to protect themselves from having bank accounts frozen for indefinite periods of time. Lots of people started trading in Bitcoins. This's a crypto currency which could mean it can't be easily counterfeited but before anyone starts buying into this new currency it will be prudent to fully grasp the risks. Bitcoins aren't issued by any central government or bank so there's absolutely no accountability at all. If you're dealing with Pounds or Dollars,Euros you've the assurance that the government behind it is going to honor the debt while Bitcoins don't provide any guarantees at all. The fact that nobody actually knows who made this currency so there is number way of knowing whether it might be stolen right from under the eyes of ours.
These Bitcoins are stored inside a digital wallet which can be encrypted on your laptop. While this should provide a sense of security if your pc is lost your Bitcoins are gone as well. It's not like a credit card in which you are able to buy a replacement and carry on like nothing has happened.
While the security of this currency is a concern by far the biggest worry may be the value of it. The perceived value of a Bitcoin is able to change in a moment and unlike fiat currencies that are backed by hard assets owned by a country in case a Bitcoin value drops you've nothing of value at all.
There are several exchanges around the world that sell and buy Bitcoins, nevertheless you shouldn't buy them thinking they're going to rise in value. They're a digital commodity which some would classify as a "fad". Tomorrow it could lose all its true value and never recover.
So to recap the risks, you don't have some real security with Bitcoins since they are not supplied by a government. The value if highly volatile and could be reduced to zero in a heart beat as well as the simple fact that the currency has just been around for several years shows it's not proven to be reliable.
If you're looking for a means to preserve value then precious metals like platinum and gold,silver may be more advantageous since they've been used for centuries as a medium of exchange.
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When it comes to investing you shouldn't ever make rash decisions but weigh potential payoff and the risks and remember that there's no sure things when it comes to digital currencies as Bitcoins so approach at your individual risk.
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