Cryptocurrency has become a hot topic of discussion, with many individuals weighing up the pros and cons of its existence. While it is a popular investment type, there also has been a number of failed digital currencies that have caused many to cut their losses. In this article, we’ll discuss the advantages and disadvantages of cryptocurrency to see if it should be widely accepted.
Cryptocurrency is decentralized, which means that no one authority has control over it. This is a significant benefit to many individuals, as they can transfer funds from one to another without any third-party interruptions. Since you have complete control over it, it makes it ideal for investments. Decentralization also means that one individual doesn’t determine the flow and value of the coin.
Con: High risk of theft
Without the use of a digital wallet, owning cryptocurrency can put you at a high risk of theft. Hackers can access and steal your finances, and many times there is no way to get them back. While owning a digital wallet is the best course of action, you also need to be careful about what you do with your unique key. If it gets stolen or misplaced, you can say goodbye to all of your investments.
Pro: Lower transaction costs
Another benefit of cryptocurrency is that it almost eliminates transaction costs entirely. Regular fees that you would typically incur from transactions or writing a cheque can take a considerable chunk out of your finances, but will digital currency you can avoid them. This is because it doesn’t need to pass through any other middlemen like regular currencies. If you’re looking to get started, make sure you check out a 2FA bitcoin wallet to keep your funds secure.
Con: Increased criminal activity
One of the main reasons why most governments don’t like accepting cryptocurrency is that it has made it very difficult to track down the rising number of online cyber criminals. Since it is decentralized, it can’t be tracked like other regular currencies, making it virtually impossible to find the culprits. More and more people are using it on the dark web, and the number of scams to obtain it are rising.
Pro: Speedy exchange
Since there are no third-parties to worry about during transactions of cryptocurrency, it makes for much quicker exchanges. What would typically take a few days can now take a few minutes, which is one of the main reasons why businesses and investors love it. Faster money with no fees? It’s a win-win.
Con: High-risk factor
Lastly, one of the main disadvantages of cryptocurrencies is that it poses a high-risk factor for investors. Since there is nothing to determine the rise and fall of the coins’ value, it’s hard to predict when to sell and buy bitcoin. On top of that, there is the risk that the digital currency will flop altogether and become virtually non-existent.
When taking the above into consideration, it’s interesting to see the pros and cons of cryptocurrency. While many places have varying views on the subject, so far, it doesn’t show any signs of going anywhere soon. What do you think? Should we accept cryptocurrency as our future?