Is Bitcoin a good option to make high risk investments?

faber ventures

Undoubtedly, the boom that has the chance to meet new investment opportunities, of course, the new cause curiosity. It is innate in humans that’s why bitcoin and blockchain technology have received much attention in recent years. Investors recognize enormous opportunities in these spaces, it is possible to enter and being in the forefront and belong to financial technology.

Is for this reason that the financial technology as a whole thing has received attention from the great facilities that now offers and that is going to evolve towards other unexpected status, equally striking as many banks are reducing the number of branches, trying to low costs, but on the other hand these institutions want to offer services of the XXI century. As for bitcoin this new way of generating wealth attracts attention, but in parallel there are important things that any cautious investor who wants to enter this space must know.

Firstly, if you are considering investing in the bitcoin space and your investment is very small or almost insignificant, your  investment can not be profitable, if exchanged immediately, however there are cases of people who invested about $ 50 in bitcoin in 2009 when the price of 1btc was about $0.00250 and by 2013 its investment was multiplied by 1000, the small investor has the ability to make a purchase with their uncommitted resources, as a form of investmentment in the medium term. What is sure is that many commercial firms applaud or celebrate the creation of bitcoin and blockchain technology, on the other hand, actually using and creating a bitcoin wallet it is very easy.

As described above, it is the easiness in terms of technology which appear daily new Bitcoin startups which are redundant in terms of the services they offer. from this idea several questions raise Why is there need for various wallets?, is there competition for the good of the market?, and finally the most important, what are the benefits or profits?.

Undoubtedly, many of these questions or concerns can press on the Exchange bitcoin also like financial institutions must abide rules and laws such as the Anti-Money Laundering (AML), which for some is cumbersome but is faithful compliance also regulations as KCY, where banks and Bitcoin Exchanges are obligated to know their customers to prevent money laundering and to know the origin of the funds.

It is known that to get started in business many users prefer private transactions, in some cases users choose to pay with mobile devices or via PC transferences and purchasing goods and services online. Another possibility is the sending of remittances to buyers relatives of their origin country, with a very low cost, this is a great help when economic resources are scarce

Another peculiarity in business with digital currencies have it The VC Venture Capital Companies, it means Venture Capital, when funds are exchanged in bitcoins procedures have to be known concerning to money laundering and the funds source, this is a pending task; in them there are many questions that technology has to be able to regulate or filter to comply with the rules and laws of each country.

Equally, there is another problem facing VC investments (Venture Capitalis) when bitcoin trading is made and that has to do with the laws in the accounting books, in this regard there have been seen some examples such as the case of Charlie Shrem, who took money from the Winklevoss twins, this was sentenced to two years in prison for money laundering, other illegal cases are also known in the sale of bitcoin in what is known as the silk road and the online sale of drugs those are all examples of bad practice in terms of trying to circumvent the law.

In summary, for any investor who wants to enter and operate in a VC, must save and follow all the procedures, instructions, for each of the operations carried out by the company, this should be the most important, new starup that are looking forward where to invest their capital, can not be carried away by the bad advice and not wanting to comply with the rules, the regulations described above, such as money laundering, the source of funds in money or other traded goods, should be at the forefront of the technology without forgetting the most important laws of each country must be followed.

It can’t be forgotten that there is an intellectual work on developers who innovate in the bitcoin and blockchain ecosystem to give greater benefits to users and wich are the engine that drives the entire system, it is necessary to make this technology a public space, free, and transparent to everyone.

References: cryptocoinsnews

Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.

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