When it comes to Bitcoin investment you have to be very careful regarding it's advantages and disadvantages because both aspects are important for investor and for a trader.

In previous blog I have written about the advantages of Bitcoin and I have compared it with cash. But in today blog we will discuss the drawbacks of Bitcoin.

1-volatility

2-no government regulation

3- irreversible

4-limited use

Volatility :

A limit was set of 21 million Bitcoin that can ever exist when a bitcoin was created by satoshi nakamoto. This thing makes Bitcoin so much valuable and that is the reason it's value is increasing day by day and its price is being in fluctuations everytime. Bitcoin is so much volatile and no prediction is there which can be 100% true. There are different factors which makes the Bitcoin more volatile.

No centralized

We have talked about no centralization of Bitcoin in our previous article and we have observed the positive side of decentralization. Alto it is providing us so much benefits when it comes to Bitcoin. But it has a few disadvantages like when it comes to investing in Bitcoin so it is not regulated. On the other hand the cash system is regulated by the central banks but Bitcoin transactions don't come with legal protection and typically are not reversible which makes them insecure. One thing which I have observed during war of of Russia and Ukraine that Bitcoin was losing its graph and there was no such trade in Bitcoin which we were observing in previous times. It also affected the price of Bitcoin so we can say that when a large group of investors stopped to invest in Bitcoin it influence Bitcoin price.

Irreversible :

Although the system of Bitcoin is unique and it provide security to its users but it sometimes went under different circumstances so it's security creates so many issues for investors. The transactions which are done in Bitcoin are irreversible and final. It sometimes create problems for us because let assume that what if you have sent your assets to such person who was stranger and he was wrong recipient. Now you could not do anything further means there is no chance to get back the money. Once you lose you will be totally out of your pockets. There is risk of losing your Bitcoin when you are keeping your Bitcoin in your online wallet.

Limited use :

The credit card and debit card are the world widely accepted but the problem is regarding Bitcoin because Bitcoin is not accepted all over the world there are certain countries which have Ban over Bitcoin. Not out there are so many companies and countries which are allowing us to pay in Bitcoin but it has limited use so this feature is challenging for the investors and traders. Now there are so many governments and companies who are now giving permission of use of Bitcoin which is a good news for all of us but in the countries where there is no such permission they have to cut down so much tax amount while transacting their Bitcoin so they remain reluctant to invest in Bitcoin.

As far as the question of investment is concerned that it is worthy to invest in Bitcoin then I will say " yes" because I think in a long term it will flourish more and it will provide us benefits we could become financially stable which we all wanted to be. I think Bitcoin is giving us more benefits as compare to disadvantages and we should keep the pros and cons both in our mind because this will help us to make a healthy discussion it's not for just investment the two sides of each thing will help us in every field it will provide us a broader picture of something and we can make a valuable analysis on this basis.

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