When the central bank in Cyprus freezes bank accounts and limits the amount of cash that can be withdrawn from a bank account, it creates a large fascinated figure throughout the world. If consumers do not have access to money, how can they buy and sell things needed to continue in our modern world? The reality is that they cannot become consumers all over the world start looking for safer alternatives for Fiat currencies. Fiat currency is a currency that does not have real value than what the government gives to it.

Consumers are looking for ways to save their purchasing power to protect themselves from having a bank account frozen for an unlimited period of time. Many people start buy bitcoin and sell bitcoin. This is Cryptocurrency which means it is not easily faked but before anyone starting to buy in this new currency will be wise to understand the risk.

Bitcoin is not issued by the Central Bank or the Government so there is no responsibility at all. If you deal with the dollar, the euro or pound you have a guarantee that the government behind it will respect the debt while Bitcoin does not guarantee anything. The fact that no one really knows who makes this currency so there is no way to find out whether it can be stolen directly from under our eyes.

Bitcoin is stored in a digital wallet that can be encrypted on your computer. Although this must provide a sense of security if your computer loses its bitcoin is also gone. It's not like a credit card where you can get a replacement and continue as it happens.

While the security of this currency is worrying so far, the biggest concern is that value. The value of perception of bitcoin can change in a moment and unlike Fiat currencies supported by hard assets owned by a country if the Bitcoin value goes down, you have no value at all.

There are several exchanges around the world that buy bitcoin Sydney, but you can't buy them thinking they will rise in value. They are digital commodities that some people will be classified as "FAD". Tomorrow it can lose all the real values ​​and never recover.

Then, for the college of risks, it has no real security with Bitcoin because they are not provided by the government. The value if it is very volatile and can be reduced to zero in the heartbeat and the simple fact that the currency is only around for several years shows that it is not proven to be reliable.

If you are looking for ways to preserve the value then precious metals such as gold, silver and platinum may be more useful because they have been used for centuries as an exchange media.

When it comes to investing you may not make a rash decision but weigh the risks and potential results and remember that there are no definite things in terms of digital currencies such as Bitcoin so approach your own risk.