There are several advantages of cryptocurrency. However, there are certain disadvantages of this new form of digital money that you should know about. In this article, I have explained the various pros and cons of cryptocurrency which will help you decide if investing in cryptocurrency is the right thing for you.
Pros and cons of Cryptocurrency
Let’s take bitcoin to illustrate this point. Bitcoin transactions are monitored on blockchain. Once a transaction gets complete and gets recorded in the public ledger, it cannot be altered. These transactions can be verified by anyone and anytime. But, nobody can manipulate it in any way.
2. Protection from identity theft
The transaction of digital currencies is completely under your control. The transactions are independent of the identities of the persons/parties making them. This keeps the transaction safe and protects the user from identity theft.
Physical money is traceable. This is not the case with cryptocurrency. Cryptocurrency is easily transportable without detection. You can easily carry billions of Bitcoin dollars with you in person using a memory drive.
1. Market fluctuations
Cryptocurrencies can be subject to market fluctuations. You need to understand that the market prices keep on changing. Check this website to know about the changes in market prices of cryptocurrencies. You can also check the latest coin listings on exchanges through this website.
2. Not so popular
Not everyone knows about cryptocurrencies. Even if some people know about it, they do not understand how it works. Because of this, people are mistrustful of this new form of currency. This is the reason why there are only a few businesses which accept payment in the form of bitcoin or other cryptocurrencies.
3. Cannot be recovered
One of the biggest disadvantages of cryptocurrency is that once it is lost, it cannot be recovered. Unlike banks, which gets your money back in case of stolen credit card or hacking, lost digital coins cannot be retrieved.
Transactions made through bitcoins or other cryptocurrencies are virtually untraceable. This makes it a good source for criminals to make transactions without the risk of getting traced. This is the reason why cryptocurrency is banned in some countries.
So, having gone through all the pros and cons of cryptocurrency, do you think the pros outweigh the cons? In my opinion, it depends on your purpose of use. If you are thinking about using cryptocurrencies for your daily transactions, it is not worth it. However, if your intention is to stay invested, cryptocurrency is a great option.
I hope you found this article useful and informative. If you want to know more about cryptocurrency, blockchain or online investments, let me know in the comment section below. Also, let me know your suggestions and questions about the pros and cons of cryptocurrency. Share your tips with me if you have any. I will be glad to get in touch with you. To show your support, share this post with your friends on social media and elsewhere. Thank you very much for reading.