Pros of investing in Bitcoin.
Bitcoin is trusted.
With all the scams online, it’s only wise that we sometimes invest in coins that have been around for a while. Bitcoin is one good example in this case. Bitcoin is the first coin ever, and as such, it has led to the creation of thousands of alternative coins, called altcoins. So here is more of like a security or a guarantee you get from investing in Bitcoin.
Bitcoin is decentralized.
One of the main reasons why people are turning away from the traditional monetary system and looking towards the new cryptocurrency system of money is because it has this decentralized nature. For Bitcoin to be decentralized implies there are no authorities or central banks that may impose high fees for transactions or restrictions. Also if you have been dealing with transferring money abroad, then you must have been angry with the high charges you pay. However, Bitcoin is global, so there are no exchange rates to deal with.
Bitcoin is highly liquid.
One of the cool advantages of investing in Bitcoin is that it has high liquidity. What does this mean? In simple terms, it means you can easily convert Bitcoins to goods or money. You can also use it to Buy other goods or services from a variety of online stores. From a report in 2009, we saw close to 5Billion dollar worth of Bitcoin activity. This just goes further to show how many people transact with Bitcoins. Its liquidity is one desirable aspect and therefore an advantage you get for investing in Bitcoin.
Bitcoin is a deflationary currency.
One good quality of Bitcoin is that it is prone to inflation. With our traditional money system, the amount of money that can be printed is kind of unlimited. This might seem cool until you know about the disadvantages of this. Governments print extra money during financial crises and other economic crises. This causes more money to be in the economy chasing the same amount of goods. This causes a loss in the value of money. What is known as inflation. However, Bitcoin is a deflationary currency. This is because the amount of Bitcoin that can be present at a given time is fixed – 21million coins. Therefore, Bitcoins cannot be mined above this value. Hence making it prone to inflation.
Bitcoin is transparent.
Transparency of Bitcoin is another vital feature of Bitcoin. This asset is much more than a payment system. As I explained above, Bitcoin uses Blockchain technology to verify each transaction. And this gives everyone the ability to view their transaction details at any time they want to because the transaction details are stored on the Blockchain permanently.
From the few above mentioned pros of investing in Bitcoin, it might be tempting to just jump into it without a second thought. However, it is important that you also understand that it has these disadvantages.
Cons of investing in Bitcoin.

Bitcoin investing is not regulated.
One disadvantage of Bitcoin investment is that it is not regulated by any financial system. These are giving rise to lots of scams nowadays. Unlike Bitcoin, government-issued currencies are regulated by the central authorities.
Security concerns.
The increasing popularity of Bitcoin is giving rise to security concerns across the world. If you don’t keep your digital wallet safe and lose your private keys, you can lose all your Bitcoins, and you cannot even file a case against the same. So this is another disadvantages of investing in Bitcoin as you can loose all your investments if you are not careful.
Bitcoin is highly volatile.
One of the worst cons of investing in Bitcoin is its volatility. As Bitcoin is a scarce asset, its value is influenced tremendously by demand and supply principles and market sentiment. This makes Bitcoin highly unpredictable and volatile, hence risky. For instance, Bitcoin reached almost $20,000 in December 2017, and weeks later, it dropped below $10,000.
Bitcoin transactions are slow.
While you might enjoy all the low transaction fee’s and the high liquidity of Bitcoin, you might get pissed off by the slow transaction rates. However, new altcoins like Ripples XRP are here to address situations like this.
Bitcoin is not 100% safe.
Even though blockchain technology is almost void of hacks, the truth is that Bitcoin is not 100% safe. Hacking is a major threat, especially if you hold your bitcoins on an exchange. We all remember the notorious Mt.Gox hack, right? Furthermore, many people find it difficult to manage private keys and may lose their wallets beyond recovery.
As we have seen, investing in Bitcoin comes with its pros and cons. I t is left on you to be able to manage the risk that comes with investing in Bitcoin.