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There is no doubt that many people are very enthusiastic about blockchain technology. However, it is important to remember that this emotion is easier to gather than skepticism. Human beings have a bias towards excitement. As a result, we tend to overestimate short-term impacts and underestimate the long-term impacts of technological advances.
The cornerstone of this argument is that, although blockchain technology may have some potential, it is not worth investing in cryptocurrencies like Bitcoin for one or more reasons. This argument does not say that you will lose your money if you do, but cryptocurrencies have certain characteristics that make them undesirable as investment prospects. Some of the common arguments for not investing in cryptocurrencies are:
The cryptocurrency is notoriously volatile. If this is enough to avoid an investment, then the cryptocurrency is not for you at this stage. However, it is important to remember that volatility in itself does not represent a significant risk for long-term investors, as long as they are willing to maintain themselves through the bear markets. In fact, if you play your cards well and trade like a ready octopus, you can benefit from this volatility by buying or increasing your investment during bear races.
While this is a valid point, it can be eliminated mainly by taking the proper precautions during the purchase and storage of your coins. Having said that, we fully understand if someone does not feel comfortable investing their money in cryptocurrencies due to security issues. Let’s hope that the cryptocurrency community continues to develop safer and more accessible ways to invest with BlockChain Services in Saudi Arabia. since this seems to be one of the main obstacles for most people looking to invest medium to large amounts of capital.
Regulatory risk refers to the risk of governments trying to restrict their access to Bitcoin due to concerns about their anonymity or lack of regulation. We have already seen that this is happening in China (Bloomberg) and it is certainly not outside the limits of the possibility that it may also happen in other countries. Doing so will have a negative impact on the price. Having said that, Bitcoin’s reputation has improved tremendously in the last 3 years and most governments around the world have a permissive attitude. BlockChain Development Services in Saudi Arabia believe that most open governments around the world will continue to be positive with the cryptocurrency and will continue to develop a policy that regulates the market without restricting people’s access to it. This has certainly been the direction most governments have addressed in recent years
Every investment decision must take into account both risks and possible rewards, and we all have different levels of risk tolerance. Our personal opinion is that the positive side of the investment in cryptocurrency far exceeds the risk.
After spending a lot of time investigating arguments against blockchain, we are actually more optimistic about the general potential of technology. The coherent articles with reasonable arguments against blockchain are few and far between, and the general feeling of the technology sector seems to be very positive. Despite the enormous potential of technology, it is important to remain skeptical when evaluating individual use cases, since Blockchain Saudi Arabia help you to overcome your transactional problem. What are your thoughts? Is there any argument against the blockchain technology that we do not cover? We would love to hear from you on our message board below!