The bitcoin price is climbing up again. This time the BTC to USD rate is hovering above $12,000. The cryptocurrency is becoming an even hotter commodity. Therefore, many investors are already reeling in large sums of money. Everyone interested in investing is closely following the market activity. Well, if you did not think about the threats to this cryptocurrency, think again.
Threats to Bitcoin Price
Here are some factors that may challenge bitcoin price in the future.
Potential Human Error
Yes, you heard that right, you can quickly lose your coins at any time. If you did not know, find again the guy who lost his hard drive with thousands of bitcoins in it. Therefore, even if everything else goes okay, one silly mistake could cost you a lot of money. So, make sure that you do not commit any such mistake. Anyone committing such an error could potentially be setting millions of dollars on fire. Do not type the crypto code, copy and paste it. This way, you would minimize the chances of committing such a costly error. Make it a rule not to share your private key with any other person. If you do, you are exposing yourself to a potentially massive theft of the digital money.
Other Cryptocurrencies in the Market
We can see many different bitcoin alternatives on the market. However, no one has come close to tasting the success like bitcoin. But, you never know when another cryptocurrency starts picking up. Therefore, it is essential that you understand the other options available in the market too. Sometimes, if one commodity gets out of affordability, investors do start looking at other alternate options. Furthermore, no one knows the future of any cryptocurrency. It depends on a lot of different factors to ascertain what will happen to which digital currency.
There is a lot of technology involved in protecting the digital cryptocurrencies. However, there are still chances that someone may steal your bitcoins. We can say for now that blockchain is safe. But, wallets and exchanges may be at risk. Therefore, keep this threat in your mind before you consider investing your money in the digital funds.
Many countries are already showing their dismay about the new cryptocurrency. Therefore, the bitcoin value may suffer if more countries like China and South Korea do not allow trading in it. Although, it is not something to be seen across too many countries. But, one never knows when the central banks of different countries would start interfering into the matters of digital money.