What are the Strength and Weaknesses of Bitcoin? Should I consider buying Bitcoin? If you are thinking about investing in BTC, then for you it is vital to get a good understanding of the plus points and minus points of it. Here in this post, you will learn about the strength and weaknesses of BTC so that you get help in making a well-informed decision. So, let us now begin with it.
Strengths of Bitcoin
Store of value
Getting the title of “Digital Gold”, BTC, Bitcoin has been now accepted as a store of value by several genteel investors. As you are possibly aware, a store of value is a commodity, asset, or currency that keeps its value for a very long time, a trait that is very much important during the time of inflation.
Bitcoin has been one of the best-performing asset classes of the last era. Even bitcoin outperformed the second-best-performing assets class. Even small investments have produced very good returns for long-term investors. Naturally, the historic rise of BTC has produced many success stories of Bitcoin.
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People can self-custody cryptos such as Bitcoin. You need not have to depend on the bank, legal docs, or a solo entity to take full ownership of your assets. This creates an incredible impact in nations across the world without strong assets rights, giving people control over their upcoming times. And if you choose to self-custody Bitcoin, ensure that you choose the best Bitcoin wallet.
Bitcoin is one of the most decentralized cryptos. It means that the network of bitcoin is distributed across many computers, called nodes. Decentralization is vital as it prevents a single point of failure to attack, making it not possible for a government or an organization to take down the network. Bitcoin was the first protocol that solved the problem of Byzantine Generals and produced a decentralized network with shared consensus and that invention gave a path to all crypto that followed including Dogecoin, Ethereum, Polkadot, and Litecoin.
Anybody can have access to the Bitcoin network. It does not at all matter where you reside or how much money you are having. It is an open P2P network that all of us can use. Being permissionless is vital to all of us as we are imagining a future wherein the virtual economy will be accessible to all of us.
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Bitcoin is secure. Public key cryptography ensures that each transaction is authentic. Its decentralized means that no centralized power can deploy it for the benefit. And its irreversibility means that no one can go back and modify the data.
Contrast conventional financial markets, bitcoin doesn’t close in the afternoon or over the weekend. It is tradeable for all 24x7x356 days. Sending bitcoin is quite faster than any bank transfer. Whereas remittance payments to family overseas can take days. People can send and get bitcoin in 10 minutes to 60 minutes.
Bitcoin is greatly unstable in comparison to other assets such as property. Bitcoin is expected to be a quickly growing asset and has been a boon for worldwide traders, for a long-term investor, Bitcoin can be hard to stomach often. As always, risk management is vital in this market.
While Bitcoin is now being covered by the largest media companies across the world, still many people are not aware of it or why it is so transformative to society. For instance, many people are aware that it has been a successful asset to produce wealth with, but they do not recognize how it can authorize the unbanked groups.
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