Cryptocurrency – Advantages, Drawbacks and More

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conventional currency

In the past few years there has been a new entity in the world of finance and economics.  This entity is a lot like a shadow of our already existing conventional currency.  This visitor cannot claim to have had much acceptability among citizens in general.  Most people feel suspicious and unfamiliar about the entire concept. This phenomenon is a lot like what people in the initial days felt about using credit cards.  In the beginning credit cards were looked at with great trepidation. Yet, now credit cards have wide acceptance among people.  Similarly, today, this relatively new entity called, “cryptocurrency” kripto para seems to be here to stay.

concept of cryptocurrency

We all know Ether and Bitcoin.  These are two among the different kinds of cryptocurrencies that function by means of the Blockchain Technology.  The Blockchain Technology ensures the safety of this technology and currency.  Yet, there are some drawback with this kind of currency that cannot be wished away.  Cryptocurrencies are difficult to understand for common people as they have newly come in and people are not yet familiar with the concept.  Many people invest without complete knowledge and end up losing money.  This lack of knowledge also leaves them vulnerable to attacks by hackers.  Not many countries have legalized transacting through cryptocurrency kripto paraSimilarly, most websites and companies do not accept digital currency.  Therefore it becomes difficult for people to check where it is acceptable and where it is not, before entering into any transaction.  Bitcoin is now being used in several ways.  Yet, it has still not gained legitimacy in commerce and international bank transfers.  A lot more needs to be done in order to get cryptocurrency to the level of complete and widespread acceptability.  There is a big risk of your losing your wallet with all your cryptocurrency in it, when you store your digital currency on your phone or computer.  If you lose your device or password then it is almost impossible to retrieve it even with legal aid. There is also the disadvantage of not being able to reverse payments once they have been completed.

Yet, despite the many drawbacks to the concept of cryptocurrency, there exists the scope of its popularity increasing in the modern world because the advantages outweigh the few drawbacks that are attached to this kind of digital currency.