When the central bank in bank accounts and limited the sum of money that might be withdrawn from bank accounts it created a massive uproar that has been felt round the world. If consumers did not need usage of money how could they buy and sell the things had a need to carry on in our modern world? The reality is they can not so consumers all over the world started to consider safer alternatives to fiat currency. Fiat currency is currency that’s no tangible value regardless of what the us government assigns to it.
Individuals are looking for a way to store their buying power to protect themselves from having bank accounts frozen for indefinite periods of time. Many people Spice started trading in Bitcoins. This can be a crypto-currency meaning it cannot be easily counterfeited but before anyone starts buying into this new currency it could be prudent to know the risks.
Bitcoins aren’t issued by any central bank or government so there is no accountability whatsoever. If you are working with Dollars,Euros or Pounds you have the assurance that the us government behind it’ll honor the debt while Bitcoins don’t provide any guarantees at all. The fact no-one truly knows who made this currency so there is no means of knowing whether it could be stolen right from under our eyes.
These Bitcoins are stored inside a digital wallet that can be encrypted in your computer. While this will provide a feeling of security if your computer is lost your Bitcoins are gone as well. It is not like a credit card where you are able to get a replacement and carry on like nothing has happened.
As the security of the currency is just a concern by far the biggest worry is the value of it. The perceived value of a Bitcoin can alter in a minute and unlike fiat currencies that are backed by hard assets owned by a nation if your Bitcoin value drops you have nothing of value at all.
There are a few exchanges all over the world that sell and buy Bitcoins, but you ought not buy them thinking they are going to rise in value. They’re an electronic commodity which some would classify as a “fad “.Tomorrow it might lose all its real value and never recover.
So to recap the risks, you may not have any real security with Bitcoins since they are not provided by a government. The worthiness if highly volatile and could be reduced to zero in a pulse and the easy proven fact that the currency has only been around for some years shows it’s not shown to be reliable.
If you are looking for a way to preserve value then precious metals like gold,silver and platinum may be much more beneficial since they have been used for centuries as a moderate of exchange.
When it comes to investing you must never make rash decisions but weigh the risks and potential payoff and remember that there surely is no sure things when it comes to digital currencies like Bitcoins so approach at your own risk.