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Cryptocurrency is a fairly new technology compared to all the technology we see in the market. Hence, being a new technology, people are not aware of its full potential. We have barely ventured the surface of the Cryptocurrency and Blockchain.
Cryptocurrency and Blockchain technology brings a new vibe to the market. Their presence is enough to trigger an uproar in the market. For instance, fiat currency is already looking at the Cryptocurrency as one of its future competitors in the centralized financial market.
We all know how Cryptocurrency has performed in the last decade. We have seen several millionaires and billionaires coming out of the Crypto industry, and we have even seen some of the biggest scams of the decades.
With all the past events, people are left in confusion, whether to trust Cryptocurrency or to leave as it never existed? Well, there is no right answer to it. As a third-party group seeing both the activity happening in front of us, we keep a neutral view in the use of Cryptocurrency.
With careful observation and considering several factors and events, these are the pros and cons we have come up with.
Pros Of Cryptocurrencies
Cryptocurrency is a new concept in the market. Whenever the market has something new, people become skeptical. However, this skepticism has not taken the people very far. With careful consideration, these are the pros we find out about the Cryptocurrencies.
1. Protection From Inflation
Inflation is one of the major issues for fiat currencies. With time the value of the fiat currencies deteriorates. However, Almost every Cryptocurrency comes with a limit, which makes it immune to any inflation.
2. Self Governed
The governance of Cryptocurrencies is one of the major concerns of the system. In the fiat currency system, though you may have your fair share of currency, it is managed by the central banking system. However, in the case of Cryptocurrency, you are the owner of your Crypto assets.
3. Secure
Cryptocurrency is supported by the blockchain network, which works on the principle of the public ledger. That means all the information is stored in the public ledger network. Hence, it is hard to decode.
4. Decentralized
A major pro of their Cryptocurrency is its decentralized nature. This means no authority can claim authority over it.
5. Cost-Effective Transaction
The use of Cryptocurrency is growing in the remittance market. The sole reason is that it offers less transaction cast compared to the traditional transaction methods. This can only happen due to its proof of work feature.
Cons Of Cryptocurrencies
As Cryptocurrency is a new concept, it is far from being perfect. Developers are trying their hardest to make themes more reliable. Even after knowing this, you want to invest in Cryptocurrency; then these are the cons you need to be aware of.
1. Can Be Used For Illicit Purposes
The privacy of the Cryptocurrency is high. It provides resistance to the government and restricts them to track down any transaction. This may be one of the pros, but if it is misused for illicit purposes, then the same features can backfire.
2. Data Loss Can Cause Financial Loss
Developers are trying their best to create one of the strongest source code that is impossible to break. If this feat is achieved, you can consider this method better than the traditional methods to store your money. However, in the worst case, if any external attacks breach all the security, you will not only lose all your data, but you will also lose your wealth.
3. Some Cryptocurrencies Are NOt Available For Exchange
There are thousands of Cryptocurrency in the market, and some of them are close to negligible price value. Hence, it is hard to find them on any trading exchange platform.
4. Prone To Hacks
Although Cryptocurrency is very secure, the exchanges are not that secure compared to the transaction. Most exchanges store the wallet data to make the exchange process; this exposes you to the hacker. Fortunately, some exchange platforms do not store their users’ data—for instance, Crypto Code.
5. No Cancellation Policy
Crypto transactions are good if you know the people. Otherwise, the transaction can be risky as you will not get a chance of a refund.
Conclusion
Tere you have it, Pros and Cons of Cryptocurrencies. We hope that we were able to shed some light on the good and bad points of Cryptocurrencies. Which points did you know? Which point did you learn today? Tell us in the comment section.
