Bitcoin is the king of the Cryptocurrency World. Investors from different parts of the world are trading in Bitcoin and are earning a decent amount of Profit through the same process. It is best known for its confidentiality policy but at the very same time, Bitcoin Investment does have certain disadvantages. But the same is only because of a few unforeseen events. In this article, I am going to discuss a few disadvantages which are involved in Bitcoin Trading and sometimes hinder its working as well.
Malicious activities of Hackers:
Blockchain is the shield of Bitcoin, it plays a vital role in Bitcoin’s safety. Blockchain mainly keeps a tab on the transactions involved in Bitcoin Trading and also fights back the Hackers. Because of the evident popularity of Bitcoin, Hackers these days, have created so many fake websites, claiming to be a platform for making Investment if Bitcoin. While investing in bitcoin, it is very much important to only use the trusted Bitcoin trading sites just to ensure that the safety of the fraudulent acts committed by the Hackers. You can come across some more information about the same on www.bitcoinup.trade.
No Governing Authority:
Bitcoin is a unique form of the Electronic currency which functions on its own, without having any authority looking after or managing its work and functioning. Due to the same Bitcoin trading becomes a bit risky Platform. One cannot seek the compensation of damages from the site is the same gets crashed. It does not have a virtual identity and is completely technology-based.
Not been accepted as a mode of payment around the world:
There are few cities around the world, that have duly embraced Bitcoin as a legit mode of making payments at shops, restaurants, bars, and few other places. Not only this some cities also have the Bitcoin ATM machines from where one can easily buy or sell his/her Bitcoin and even withdraw the currency from their respective Trading accounts. But at the very same time, there are other countries also where Bitcoin has not been considered as a valid mode of payment and because of the same reason, an active Investor can avail the full-fledged services offered by the Bitcoin. But fortunately, the same is solely dependent upon the policy of a country or state. This option becomes active as soon as the concerned governments introduce the policy concerning the same aspects.
No Tax Benefits:
Because of being an unaccepted form of currency in a few countries, the Investors who face losses due to the price drop in Bitcoin’s value, becomes incapacitated in claiming a deduction on the taxable Income by setting off the losses so met. Whereas in other forms of virtual currency-based investment platform, one can easily claim the benefit by seeking set off of the losses and deduction of the Tax amount.
Prohibited Cryptocurrency Trading:
Currently, there are some across the globe which have not embraced and accepted the Cryptocurrency and have prohibited the functioning of the same in their country. Citizens are not allowed to perform or get engaged in the work of Crypto Trading as the same has been considered to be an illegal act and strictly against the mandate of law. Being a reason, it becomes difficult for the Traders and Investors to perform Bitcoin Trading. On the other hand, as mentioned supra, cities have completely embraced Bitcoin and have allowed it to be a legitimate mode of making payments.
The above-mentioned points enunciate the present situation which can be considered to be the hurdles in way of Bitcoin Trading throughout the World. You must keep in mind the information I imparted you with, vide this article. I hope that you find have this information useful. Have a great time ahead