A Fresh Alternative to BitcoinBitcoin has now broken the $5,000 barrier, making it apparent that demand for cryptocurrencies is here to stay. With that said, we are very much exploring uncharted territory.
Because there really isn’t a historical precedent for Bitcoin or other cryptocurrencies, nobody really knows how this story will play out. Even the most successful hedge fund manager or famous market analysts can only guess.
So where does this leave us? Well, with plenty of speculation. And with that comes risk.
The Risk to Investing in Bitcoin
Security poses one challenge for Bitcoin investors. If an E-wallet is hacked, what legal action can you realistically take? Although you could spread your investments across several e-wallets, that’s alot of work. Plus, you’ll need to keep your access details in a safe place, otherwise everything could get taken.
Another challenge is that Bitcoin has yet to face a major crash or correction at its current levels. The rapid rise means that at some stage, whether it’s next week, next month, or next year, it will correct. This raises some important questions:
How would you handle losing 50% of your investment? 80%?
Would you be willing to ride the waves of ups and downs that Bitcoin probably will deliver?
Furthermore, because there is no historical precedent, and nothing to physically back Bitcoin (a point I’ll shortly cover), what legs would it have to stand on?
Bitcoin has proven that blockchain technology is here to stay, but will Bitcoin be the one to last? Only time will tell.
An Alternative to Consider
There are now plenty of alternative coins floating around the marketplace, many of them address the concerns we’ve outlined here. The main thing we notice is that all of them are very much backed by faith in the technology and not much else.
There is one coin, however, that stands out from the crowd: kela.io
The major advantage of this coin is that it is physically backed by a redeemable asset, namely diamonds. For this reason, it’s not only a better way to invest but more geared to those with long term vision. Finally, the security issue we’ve raised here is solved by this coin.
You can learn more about this at: kela.io
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