Is Now A Good Time To Buy Bitcoins?
When the central bank in Cyprus froze bank accounts and limited the sum of money that may be withdrawn from bank accounts it created a massive uproar that was felt round the world. If consumers did not need usage of money how could they buy and sell the items had a need to keep on inside our modern world? The truth is they can't so consumers around the world started to look for safer alternatives to fiat currency. Fiat currency is currency that has no tangible value regardless of what the us government assigns to it.
Customers are looking for a solution to store their buying power to safeguard themselves from having bank accounts frozen for indefinite periods of time. Many people started trading in Bitcoins. This is a crypto-currency which means it can't be easily counterfeited but before anyone starts buying into this new currency it would be prudent to know the risks.
Bitcoins are not issued by any central bank or government so there's no accountability whatsoever. If you're coping with Dollars,Euros or Pounds you have the assurance that the federal government behind it will honor the debt while Bitcoins don't provide any guarantees at all. The fact nobody truly knows who made this currency so there is no way of knowing whether maybe it's stolen from under our eyes.
These Bitcoins are stored inside a digital wallet that may be encrypted on your computer. While this would provide a feeling of security if your personal computer is lost your Bitcoins are gone as well. It is not like a bank card where you could get an upgraded and carry on like nothing has happened.
As the security of this currency is just a concern definitely the greatest worry is the worth of it. The perceived value of a Bitcoin may change in a minute and unlike fiat currencies which are backed by hard assets owned by a country in case a Bitcoin value drops you have nothing of value at all.
There are certainly a few exchanges around the globe that sell and altcoin Bitcoins, but you shouldn't buy them thinking they will rise in value. They are an electronic digital 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 don't have any real security with Bitcoins being that they are not provided with a government. The value if highly volatile and might be reduced to zero in a heart beat and the straightforward undeniable fact that the currency has only existed for some years shows it is not shown to be reliable.
If you are looking for a solution to preserve value then precious metals like gold,silver and platinum may be more beneficial since they've been used for centuries as a moderate of exchange.When it concerns investing you ought to never make rash decisions but weigh the risks and potential payoff and remember that there is no sure things when it comes to digital currencies like Bitcoins so approach at your own risk.