People of the future will definitely study cryptocurrency as a phenomenon that has significantly affected the economy worldwide and changed the game’s rules. You can treat cryptocurrencies in different ways — positively or negatively, but it is impossible to be indifferent to them. It has its strengths and weaknesses, which we will tell you about.
Advantages of cryptocurrency
The advantages of cryptocurrency include the following positive points:
- the availability of cryptocurrency at any time — it is impossible to withdraw it or freeze an account with it, as is the case with ordinary money;
- many services facilitate your work with cryptocurrencies — for example, a service for special crypto exchanges will help you find out how to exchange tokens most profitably;
- the possibility to check the reliability of the performed operations at any time;
- the opportunity to make money by mining cryptocurrencies;
- anonymity — unlike classic e-money, transactions with which are easily tracked, it will not be possible to obtain information about the owner of a cryptocurrency wallet (only the wallet number and limited data on the amount on the account are available);
- reliability — hacking, forging, or carrying out other similar manipulations with cryptocurrency will not work because it is reliably protected;
- the limited nature of the cryptocurrency — as a rule, it is issued in a limited volume, which attracts increased attention from investors and eliminates the risk of inflation due to the excessive activity of the issuer;
- cryptocurrency is an independent monetary unit, no one regulates its emission and does not control the movement of funds on the account;
- no commission for transferring funds between countries.
Despite a long list of advantages, cryptocurrency has drawbacks, which we will tell you about.
Disadvantages of cryptocurrency
The disadvantages of cryptocurrencies include the following points:
- the difficulty in controlling transfers — banks and other supervisory and monitoring bodies cannot control operations on the issue and movement of cryptocurrency (however, for some, this may seem like an advantage);
- the risk of a ban — government agencies are wary of cryptocurrency, and many countries have already imposed restrictions on its use;
- the inability to withdraw the payment and get your money back;
- volatility — cryptocurrency is unpredictable, as it depends on current demand, which, in turn, may change as a result of changes in legislation and other factors;
- risk of loss — the access key to electronic money is a special password, and if it is lost, the cryptocurrencies in the wallet become inaccessible;
- no guarantees — each user is personally responsible for their savings, because there are no regulatory mechanisms, so in case of theft, there is no way to prove anything and get them back.
Cryptocurrency is freedom, and freedom is responsibility. You can manage your money as you like, but you are solely responsible for saving and using it meaningfully.
