We are currently living in a cryptocurrency Bull Run like no other. In this Bull Run, we’ve seen record-highs for many altcoins and Bitcoin overcoming the $50,000 mark. But with all the hype surrounding the current digital cryptocurrency market, some spread fear in the community.
But you shouldn’t fall for these concerns so long as you’re investing in the right way. So that’s why we’re here to tell you all about what experts say regarding these big cryptocurrency concerns.
With all that said, let’s start.
1. Bitcoin Is A Bubble
So much time has passed since the previous Bull Run in 2017. And what Bitcoin naysayers say is that Bitcoin is a bubble. Why? Because they saw Bitcoin rising to $20,000 only to spectacularly fall back to $6,000.
But what these naysayers seem to forget is that even if the price fell by as much as $14,000, that’s still a profit of 600% since the previous year.
None were more vocal to smear Bitcoin than Warren Buffett himself. The billionaire investor claimed that “Bitcoin will come to a bad end”, insinuating that Bitcoin is indeed a bubble.
And although one of the reasons why the digital currency managed to accumulate such a high price is ultimately down to similar people like Warren investing heavily, a claim as silly as this is one that many people in the crypto space cannot help but laugh at.
2. Investing In Cryptocurrency Is Too Risky
The whole point of investing is to calculate risk and take on that risk to make profits. Simply claiming that cryptocurrencies are too risky investments for the average person is a very silly claim. But many do call this a legitimate concern.
So are they right? Investing in cryptocurrencies is just as risky as investing in stocks or Forex trading. All three types of investments are influenced by many factors that the average person isn’t even aware of.
Investor Mark Cuban, an American Entrepreneur and television personality worth $4.3 billion, claims that Bitcoin is very similar to gambling. And while cryptocurrencies can bring you huge returns, they can also bring you huge losses.
To invest in cryptocurrencies, you have to be aware of the potential risks. And as expert John W Rustin Jr. says, only invest what you can afford to lose.
Although concerns that investing in cryptocurrencies is too risky does hold weight, that doesn’t make it any different than Forex or stock trading.
3. Crypto Wallets Aren’t Safe
When it comes to making a silly claim like the previous one, we can agree to the “experts” to some degree. But what happens when experts claim that cryptocurrency wallets aren’t safe?
The vast majority of wallets are digital applications that store your digital cryptocurrency. But we’re seeing a huge rise in physical wallets such as the Nano Ledger X.
So wallets can be both digital and physical. And although they do serve a unique purpose of keeping your crypto safe, nothing can protect you from theft or losing the key to that wallet if you’re not safe.
Simply said, it’s like saying that driving cars isn’t safe. If you’re not careful or actively look to put your life in danger, you will eventually get into an accident.
The reason why many bring up wallet concerns is due to the fact that Bitcoin theft is and always will plague the cryptocurrency community.
Just last year we saw high-profile Twitter accounts being hacked in a Bitcoin scam, where the hackers posted a link on the hacked accounts and people would then click on it. The link in question was a scam that would steal your Bitcoin and other cryptocurrencies if you indeed owned them.
The damages as a result of this scam were in the hundreds of thousands and even millions. While no one knows who the hackers were, they did manage to hack into some very high-profile Twitter accounts such as Tesla CEO Elon Musk and Former President Barack Obama.
According to John Rustin, you will lose your cryptocurrency if you’re not careful on the internet. What he recommends is that you don’t click on shady links or go to shady websites that act as phishing sites.
4. It’s Only A Matter Of Time Before the Government Gets Involved
This is perhaps one of the biggest concerns that seem to be inevitable. At some point, governments will step in and try to regulate the cryptocurrency market.
Over the years, we’ve seen governments with aggressive reactions towards Bitcoin and the whole crypto industry. The biggest and most recent government interference was that of Binance and the United States.
Namely, the CFTC claimed that US traders violated US rules regarding placing wagers on trades. This resulted in Binance shutting down in the US. Binance is the largest cryptocurrency exchange that no other exchange comes close to.
Many speculate that this was done so that Coinbase, a prominent US-based crypto exchange platform, would see a rise in new users. But even Coinbase and other US-based exchanges aren’t safe from the government. At that same time, Coinbase also said that they too were a subject of an investigation regarding rule violations.
These concerns are rightfully legit, with many experts being against government interference in the decentralized space.
5. The Inheritance Concerns
Due to the fact that cryptocurrencies aren’t regulated, there are reasonable inheritance concerns. As cryptocurrencies are stored on digital or physical wallets that require a key to enter, the only way to indeed view that wallet is with said key. If the owner of the wallet would pass away, then there would be no way for their children to inherit the funds without that key.
There have been many examples of people passing away with their families having difficulties accessing the funds.
What experts like John Rustin recommend is better education regarding cryptocurrencies and how they’re stored. These concerns are indeed big, and they’re even bigger for those that mine them. For all of you Bitcoin miners, make sure that you leave ways for others in your family to access your wallets just in case.