Tuesday, January 25, 2022

Pros and Cons of Cryptocurrency | Advantages and Disadvantages of Cryptocurrency


Pros and Cons of Crypto Currency | Advantages and Disadvantages of Crypto Currency

Introduction : What is Cryptocurrency?

Cryptocurrency is a type of digital currency which using through a network of blockchain to use of exchange digitalized money. Cryptocurrency has no governance authority such as bank. There are many types of Cryptocurrencies in the crypto network. Bitcoin, Ethereum, Litecoin are most popular Cryptocurrencies at present. Nowadays Cryptocurrency is using widely for the online payments. 

Pros of Cryptocurrency

  1. Cryptocurrency has no geographical borders (Cryptocurrency is a currency which not depend on special country. It is common digital currency without any border or geographical limitations)
  2. No Government control or no centralized bank control (Normally maintenance of any currency is doing by the government. But in the case of Cryptocurrency, there are no governance authority. Cryptocurrency is stored and maintaining through miners' hardware)
  3. No intermediate fees to transactions (There are no any intermediate and no brokerage fee or commission for brokers during any kind of transaction)
  4. Inflation will not have a detrimental effect on this Cryptocurrency
  5. Decentralized (Decentralization of a currency helps to keep it stable. It does not allow any party or organization to determine the value of that currency, and unlike government-controlled currencies, Cryptocurrency is stable and secure)
  6. Security and Privacy is High (The blockchain ledger is made up of mathematical patterns that are difficult to decode easily. So Cryptocurrency is safer and more personal than the usual electronic transactions. Cryptocurrencies are a suitable trading system for better security and privacy)
  7. A quick way to transfer money online (It has the ability to make any type of transaction, international or local, very quickly)

Cons of Cryptocurrency

  1. Using for Illegal online transactions (Due to the high security of the Cryptocurrency, it is difficult for the government to find the wallet address of any user. For these reasons, some people use cryptocurrency to make drug trafficking in the dark web, as well as for other illegal transactions)
  2. Unexpected fund losses due to data loss (If a user loses the private key in his crypto wallet, he will not be able to retrieve it. The crypto wallet is locked with the number of coins in it)
  3. Cannot refund or transaction cancellation (If someone accidentally sends coins to the wrong wallet address, the sender will not be able to get the coins back. As a result, cryptocurrencies can fraudulently obtain funds for counterfeit services or goods)
  4. Risk of Hacking (Most exchanges store users' wallet data to accurately identify their user ID. This data is often stolen by hackers, giving them access to a number of wallets. At present most exchanges are very secure but there is some potential for further hacking)
  5. Governments in some countries have not yet legalized this crypto currency transactions

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