Learn About The Risks Of Bitcoin
It is certain that I heard about the crazy rises that the Bitcoin currency witnessed during the previous period,
and I realized how profitable it is, and how many people became rich because of it,
but what you should also realize, dear reader, is that the risks of Bitcoin are not far from the test,
as there are many people who lost their money because of it. And that's what we'll be discussing today.
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Bitcoin Risks
The risks of this currency are not limited to losing money only, but it may reach the point of imprisonment
in some countries that prohibit dealing with this type of payments,
and perhaps most of these countries have begun to issue laws criminalizing dealing with them.
Based on the above, the risks of Bitcoin can be classified into:
- Legal risks
- Risks in terms of price fluctuations
- Hacking risks
Is bitcoin safe and legal?
As we mentioned above, some Arab and African countries have criminalized dealing with encrypted currencies as one of the methods of electronic fraud,
while other countries have not taken any action regarding dealing with this currency, whether positive or negative.
Perhaps the basis for these laws is due to the history of Bitcoin,
which was the official currency in the dark web sites in its infancy,
as it was used by hackers and sometimes by drug dealers and members.
The fear of these countries about Bitcoin can also be attributed to the huge amount of electricity that is used in order to produce small parts of it, which may cause problems for electricity-poor countries such as Egypt, India and many African countries,
as the electricity consumption of a small number of Bitcoin mining devices may sometimes be equivalent to the consumption of areas Complete residential.
Currency fluctuation risk
The high volatility of the currency price is one of the extreme reasons for caution when dealing with bitcoin.
Imagine with me, dear reader, that you bought bitcoin at a price of 50 thousand dollars,
for example, the price fell by 20% within a few minutes, how would you feel at this time.
Of course, if you are speculating on Bitcoin at this time, it is certain that you will lose a large part of your account,
if not your entire account (in the case of a small account, or not committing to risk management) or at least losing 20% of your capital if you are storing it on your wallet.
Hacking risks
This factor may be the least risky, due to the high degree of security of the blockchain system on which Bitcoin is built,
but it cannot be denied that there have been many incidents that have been monitored by government authorities.
In general, piracy remains a constant threat to investors since the beginning of dealing on the Internet until the present day,
and it is natural that transactions in digital currencies are not devoid of this process, even if a small percentage is almost non-existent.
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