Bitcoin investment is very good and everyone should give it a try considering the good vibes that are coming from it. There are clear indications that cryptocurrency is the future of the financial world. You will, therefore, be one of those that will make it big in that future if you invest in it today. While bitcoin investment decision may be a very good one, you should not forget that such an investment also carries some risks and you should be fully aware of these risks before you put your money into bitcoin investment. You also need to learn a lot about bitcoin price and how it fluctuates so that you will not be caught unawares. Continue reading to learn more about the various risks associated with this wonderful form of investment.
The price do fluctuate
As mentioned earlier, bitcoin price fluctuates and every bitcoin investor needs to bear this in mind before ever investing in bitcoin. In fact, the fluctuation is about the most important risk that you may be exposed to as a bitcoin investor. The fluctuation is primarily due to the volatility in the cryptocurrency market and this volatility can either make you rich or force you to file for bankruptcy. The price of bitcoin in 2009 was very low, but the price reached up to $1000 in 2016 and skyrocketed to $20,000 in 2017. A year later, it fell as low as $3000. So, you must be fully aware of the possible reduction in value when putting your money on bitcoin investment.
Absence of track records
One other factor that makes bitcoin investment a rather risky one is the lack of historical track record that is available on other kinds of investment assets and commodities, especially gold. The fact that there is no track record makes it somewhat difficult to make up one’s mind about the level of volatility to expect in bitcoin in the future and one may not be able to foresee where it is heading. The issue is one of the factors that make many think that bitcoin investment may not have the desired security expected in any investment asset. Be that as it may, there are indications that the value of bitcoin will rise farther than ever in the future.