If you are always looking for new opportunities to invest money for profit, you must have heard about bitcoins. They have given huge returns to investors over the years. Still there are some limitations associated with bitcoin. Here are some reasons why you should not invest in bitcoins in 2022:
Bitcoin is not scarce
Most of the people give argument in favor of bitcoin that it is very scarce like gold and thus its value will always rise with time. But if we look carefully, the total supply of bitcoin is something that is not actually fixed. The developers might increase the total supply in future seeing more demand. So, bitcoin is not that much scarce as people claim it to be.
Better alternatives to bitcoin
There are several coins in the market that are better than bitcoin in term of speed of transaction and the fees. Practically, these are the coins which are future of crypto and they will slowly replace bitcoin. For instance, there is Litecoin which is faster and less expensive in fees as comparison to bitcoin. Many other coins are better in terms of privacy and all.
Creating a new coin is also not something that is very hard to achieve. Anyone with coding experience can create a token and that is the reason why there are so many coins in the market.
Very less people use bitcoins for real transactions
Only about 18 million bitcoin tokens are in circulation which is a very small amount. Most people associated with bitcoin are mainly to profit for its price movements. They rarely use it for transactions or to buy something. As a result, there is no real value of bitcoin. When people will realize that there is no real value of having bitcoins, prices will fall sharply, and it will end bad for several investors.
Lot of fluctuations in the price of bitcoin
Finally, the major issue with bitcoins is that the price of bitcoins keeps fluctuating by a huge margin. Sometimes, it is up by 20% and the next day it is 30% down. This price movement does not follow any trend or is not related to any valid news most of the times. As a result, your investment is at risk, and you never know how much the value of your bitcoins will held will be in future.
There are whales who control the prices for their own benefit and most of the small investors suffer because of this. Since the price fluctuations is not related to any logic, you cannot study the market and make decisions according to it. You are leaving your hard-earned money at the mercy of luck only by investing in a volatile investment option like bitcoin.