Do you remember when the first-time cryptocurrencies were introduced in the world? Well, it was a decade ago, and at that time, we knew that bitcoin would bring a revolution in the financial ecosystem. But, has it been achieved yet? Unfortunately, we don’t think so. From the very beginning, this digital currency has been witnessing its fair share of market fluctuations. Even after achieving a record height of $63,000 in April 2021, it has fallen once again to $48,000 in August.
So, how will it rule the future if it comes with so many uncertainties? Well, the answer is bitcoin is not going to lead the future, but it is here to rule the present. Thanks to Elon Musk, and his declaring partnership with Bitcoin, many people tried to purchase Tesla with this digital coin. But we think there’s still time for that. So, hold on to your reins, and let’s see the ins and outs of bitcoin.
What Are The Regulations Of Purchasing Bitcoin?
Yes, the primary point that comes to our mind when we talk about cryptocurrencies is how to buy Bitcoin. There are a few steps for that:
Step 1: Download the Bitcon.com app on your phone.
Step 2: Select the BTC option, and click the buy button.
Step 3: Follow the instructions appearing on your screen to choose your desired method for purchasing.
Step 4: You need to verify your identity if it’s your first purchase.
Step 5: Complete the purchase.
But is it that simple? Well, for now, it is. But, due to this oversimplified process, bitcoin has also been an alluring spot for hackers. That’s why the entire world is trying to figure out what kind of regulations to put forth in this cryptocurrency world.
China has shed light on some crypto mining laws, while the U.S. senators have decided to reaffirm the crypto regulations and strengthen its tax reporting measures. So, that’s the first sign of trouble. Bitcoin is not yet accepted worldwide as a reliable transaction medium, and so its regulations also differ from one state to another and from one country to another.
But the U.S. senators are hellbent to set a universal regulation to cryptocurrency so that people could have a clear record of tax keeping even when they pay via bitcoin. Many other experts in the crypto world believe that a specific regulation is necessary. For example, Ben Weiss, the CEO of Coinflip, says that setting the rules will generate more confidence in people. Thus, bitcoin will have a new wave of customers from all around the world.
The Pros, And Cons Of Bitcoin
We know that moon Bitcoin cash is the new front of Bitcoin, but before you decide to purchase there, you must know the pros and cons of investing in Bitcoin.
|1: Bitcoin is the only cryptocurrency with the most potential for generating higher returns on your investment.||1: The crypto world is fluctuating more than the stock market, so it is highly volatile. You can lose a lump sum amount here if you are not too careful with the investment|
|2: International transactions are another positive feature of bitcoin. With its help, you can buy shares from all over the world.||2: The lack of legal regulations makes Bitcoin potentially vulnerable to hacking and cybercrime.|
|3: The blockchain technology in Bitcoin makes it a decentralized platform that is easy to operate. Nobody can steal your Bitcoins, and the government can’t seize them.||3: Bitcoin ATM fees and limitations are another of its drawbacks. The fee is never fixed. It can go as low as 7% and as high as 25%.|
|4: Bitcoin is a faster and inexpensive way of investment. Even if you want to send cash to another planet, Bitcoin will remain affordable.||4: There is no way yet discovered that will protect your Bitcoins from technological error. So, it comes with a high risk of financial loss that can even make people bankrupt.|
The Future Outlook Of Bitcoin
After the financial crisis of 2008, Bitcoin emerged as the new mode of payment. But will it replace dollars and rupees in the future? Let’s find out.
Bitcoin is indeed the only cryptocurrency in the world that has the largest market share. But, the volatility of this digital currency seems to be a constant fellow passenger in the crypto investment journey. From achieving a skyrocketed height of $60,000 in April to plummet to less than $30,000 in July. That’s why experts always recommend keeping the Bitcoin investment below 5% to avoid the risk of financial loss.
Investors are finding Bitcoin’s volatile nature as a plus point for long-term investment. If you can just invest the money once and forget about it, it will likely work in your favor. That’s because Bitcoin comes with short-term setbacks but with long-term growth opportunities.
So, if you ask us to replace dollars and rupees, we’ll say maybe in the future. So far, they are coexisting in the economy, which has not ruled out the dollar value from any angle. But, if the short-term bugs of Bitcoin can be fixed, it will probably be a more recognized financial transaction mode soon.
We think bitcoin should be a new exchange mode in 2021 because it will help us deal with many financial frauds. If the technological bugs and silly human errors can be dealt with, there’s no better way to resolve illegal money laundering issues than dealing in Bitcoins. However, a regulatory framework will still be essential for people to accept this currency in their day-to-day operations. So, we think if not in 2021, Bitcoin will soon be the only mode of financial transaction sometime in the future.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.