As we are watching in news that bitcoin have reached a milestone of $5000 , which actually is a milestone in itself. People who don't know about bitcoin will see this as jackpot dead. According to human psychology "MISSING THE BUS" is one of the fear exists in human brain. For example in this if bitcoin prices are going up then people will think that i wish i have invested in bitcoin, Its too late for me to invest now in this, I have missed great opportunity to double my money etc etc.
So they just get the basic information of bitcoin so that they cannot have to suffer from regret later.This often lead to loss in most of the cases. So here are top reasons for not buying in bitcoin.
1)HIGHLY VOLATILE : What people think that it has got 3 times its worth in 3 months only. so its best reason to invest. But think about the other side. If it can triple its value in 3 months then it can also lower its value by 3 time within same period of time. This value is unpredictable. I have see this currency to lower down by 20% in a day.
RBI in INDIA have notify twice that do not invest in any digital currency because its not authorized. Government have not given any rights or license to anybody for trading , buying or selling of bitcoin or any other digital currency.
2)BITCOIN WALLETS ARE NOT AUTHORIZED : There are several Bitcoin wallets available on internet. This wallets are not authorized by any government. What if this wallet account gets HACKED ? What if you misplaced your password ?
Any of this will get you to loose your bitcoin....
3)P TO P PAYMENT : P to P payment means peer to peer payment. In this system the transaction takes place between person to person. No bank or any other body is included in this. In cases of disputes you may loose your valuable money so called "BITCOIN". There is no tracking systems. You can't complaint against anybody as no law applies to this system.
In ransomeware attack hackers asked to do payment in bitcoin so that they cannot be tracked.
4)INVESTMENT = ASSET : For example if i invest in a property then as a asset i get that property. I can use that in multiple way. While in case of digital currency what asset will you get if you invest? This is just a virtual money.
5)MOSTLY USED IN CRIMES AND ILLEGAL WORKS : If you have heard about deep web and dark web then you might know that Bitcoin are widely in use there. Every illegal activity takes place in dark web like live murders,smuggling etc. So this black market used this currency to regulate easy cash flow.
6)NO LIABILITY OF EXCHANGE: There are several websites and wallets which provide exchange service. As i said earlier this this not government authorized bodies. What if you come to know that they did a big scam? I am sure you will not get answer that which steps will you take if certain situation arises in future.
This is just a precaution post. If you have already invested then please STAY SAFE and ALERT.
As per i know bitcoin is somewhat similar to stock market. Its value increases and decreases. This takes place due to trading which takes place between buyers and sellers.
According to a saying .."WHAT GOES UP , FALLS DOWN" this uprising value of bitcoin will also fall. So play it smartly.
