If you have been following the business trend lately; you will understand that a lot is happening in online business and investment scheme with Bitcoin. Lots of people are doing different things with Bitcoin; from gambling to networking and investment; all in the name of making more Bitcoin.
However, as much as we love Bitcoin; I think it is important we arm ourselves with this useful facts about Bitcoin. Yes, this will shock some of us ad it is going to put our perspective to shape. These information are very important since you are thinking or making more Bitcoin, there are a few things you should know.
1. Wallet Security
Just like in real life, your wallet must be secured. I have hard cases of people Bitcoin account being hacked lately! As you are trying to make money through legitimate ways some guys are doing the opposite. That is why it your sole responsibility to protect your wallet. Remember, Bitcoin makes it possible to transfer value anywhere in a very easy way and it allows you to be in control of your money. Such great features also come with great security concerns. your money. Though Bitcoin system has put some helpful security measures in place.
2. Bitcoin Price Is Volatile
Yes, so many of us believe Bitcoin will NEVER fall! The story we use to hear is that some people kept $100 in 2015 and in 2016 they are all millionaire. Just like every other currency; Bitcoin is not FREE from volatility! The price of a bitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your savings with Bitcoin is not recommended at this point. Bitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers can convert them to your local currency.
3. Bitcoin Payments Are Irreversible
Were you told about this? I doubt it! Do you know that any transaction issued with Bitcoin cannot be reversed, they can only be refunded by the person receiving the funds. That means you should take care to do business with people and organizations you know and trust, or who have an established reputation. For their part, businesses need to keep control of the payment requests they are displaying to their customers.
4. Bitcoin Prevents Paying Into Wrong Account
This is one features of Bitcoin that I love so much. With Bitcoin, you can never pay into someone else account by omission or typos. You will know that typo errors are possible when typing bitcoin wallet address because of the numbers of letter and characters involved. But handsomely, Bitcoin can detect typos and usually won’t let you send money to an invalid address by mistake. Additional services might exist in the future to provide more choice and protection for the consumer.
5. Bitcoin Is Not Anonymous
It is important to note that Neither your Bitcoin transactions nor Bitcoin balance are hidden from the public. As a matter of fact, every transaction on every Bitcoin wallet is place publicly for anybody to see. Though, some effort is required to protect your privacy with Bitcoin. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances. Always remember that it is your responsibility to adopt good practices in order to protect your privacy.
6. Bitcoin Is Still Experimental
As for me; I think this is the best time to invest in Bitcoin because Bitcoin is an experimental new currency that is in active development. Although, each improvement makes Bitcoin more appealing but also reveals new challenges as Bitcoin adoption grows. During these growing pains you might encounter increased fees, slower confirmations, or even more severe issues. Be prepared for problems and consult Bitcoin expert before making any major investments, but keep in mind that nobody can predict Bitcoin’s future.
7. Government Taxes And Regulations
Bitcoin is not an official currency. That said, most jurisdictions still require you to pay income, sales, payroll, and capital gains taxes on anything that has value, including bitcoins. It is your responsibility to ensure that you adhere to tax and other legal or regulatory mandates issued by your government and/or local municipalities.