Bitcoin is an online digital currency, like a dollar or a pound, but with a few exceptions. Introduced by Satoshi Nakamoto in 2009, Bitcoin engages in a peer-to-peer payment system where there are no intermediaries and goods can be safely transferred between two people on the planet. It is associated with a heavy network of computers and the currency unit for the Bitcoin system (appropriately called Bitcoin) can be acquired simply by joining the vast network. Bitcoin provides a fast, cheap and secure transaction alternative, but few are willing to take the leap. So the million dollar question still lingers: is Bitcoin a safe investment?

Bitcoin is only a few years old, an interesting creation that has wowed many, and for the record, it has made a name for itself on the major financial charts. Its popularity has spread and has led some of the major companies like Virgin Galactic to view it as an acceptable source of payment. Bitcoin prices increase at rates of up to 10% and continue to dominate as the alpha of the market and this has made many interested in investing in it.

Another special feature of Bitcoin is that it does not have a central bank and is not controlled by a central government. It is a global currency and its creation and existence is behind a complex and geeky mathematical algorithm that allows it to hide government-related mishaps. The cases of political instability and government absurdities that plunge the economy into shame and take years of investing in a currency down the drain do not occur in the cryptocurrency system. This creates a safe and friendly investment opportunity with low inflation risks.

The low

With an increasingly surprising advantage, cryptocurrency also has its disadvantages. As mentioned, this thing is still taking baby steps; and with that come great uncertainties. Bitcoin prices are volatile; it is currently increasing considerably and can fluctuate between 30% and 40% in a month. The world is still stunned by its emergence and there are very few Bitcoin and Bitcoin holders. This leads to unanswered questions and cold fear among people, as investing in an unpredictable new ‘gold mine’ can have devastating effects. Its novelty brings with it the lack of regulations and scares away potential investors.

The enigma surrounding the Bitcoin system is an important factor to consider. Anything can happen and everyone involved in the Bitcoin market is on high alert. China in December 2013 phased out the use of Bitcoin and this led to a drastic drop in its value from $ 1,240 to $ 576 in just three weeks. Programmers also determine the functionality of this global currency and many question the idea of ​​risking their finances for some group of geeks. This prevents many from venturing into the system and greatly increases the risk of investing in Bitcoin.