Ever since the pandemic hit us, the crypto craze has managed to tighten its clutches, and how! In early 2020, Tesla made an announcement stating that it has invested over 1.5 million dollars in Bitcoin! It also explained that it has made this investment for enhancing flexibility and also for diversifying returns on cash, thus maintaining operating liquidity.
As a result of these developments, Bitcoin boomed tremendously in 2020, clocking to a rise of over 400%! And with Tesla head honcho Elon Musk keeping up the Twitter Cheerleading, the growth continued through 2021! Bitcoin has become so popular owing to the impressive returns, that you can easily find a “Bitcoin ATM near me” without much of a hassle!
Look for Gains! But, Mind your Step!
Bitcoin trading has become convenient! You can buy online, sell promptly, and rake in neat profits. Why then is crypto considered risky? Why are you advised to mind your step to safeguard your funds? We look at some of the primary reasons here:
- Its Volatility you need to be aware of: Irrespective of the fact that buying into Bitcoin investments can improve your reserves like no other, the market forces are largely volatile. Bitcoin behaves more like shares and stocks than a currency and this is the reason why investors need to concentrate on aspects like rewards and risks. Mistakes are committed when people tend to focus more on the reward aspects.
When one looks at a whopping number like 400% growth every day, suffering from the fear of missing out is but natural! However, what investors forget is that there can also be a 40% loss the very following day! It is important to assess if your business is prepared to absorb that kind of loss, all of a sudden! Once you have taken stock of the good and the bad, investing in crypto-currency will not seem problematic at all!
When used judiciously, crypto variants like Bitcoin prove to be a superb alternative for regular transactions, cutting out fees associated with financial advisors, banks, credit card processing charges, and other similar intermediaries.
- Is there Sync with your Business Model? Adopting Bitcoin as a mode of payment will involve several considerations. The most important one is the sync factor. It is important to understand that Bitcoin has no scalability yet! There aren’t enough transactions for supporting scalability perhaps. Also, blockchain technology has not developed enough to support multiple small-scale transactions. This means that Crypto transactions will not make sense for your business unless there is a rapid turnover. Bitcoin transactions are likely to be slower than credit card processing! Also, if you wish to include Bitcoin as a mode of payment, your business will need to invest in software systems for fast and easy processing. The costs will have to be suitable and worked out before taking any decisions.
Finding a Bitcoin ATM in Georgia may be easy. Whether you wish to invest in it should be a well-thought-out decision, however! Make sure you have weighed the pros and cons properly before investing. Techcrams