Many of you would be aware that I had written a blog about cryptocurrency way back when I started writing and I suddenly thought why not write about it some more like its advantages and disadvantages.
So here is a short recap on cryptocurrency basics:
Cryptocurrency is a digital currency on par with standard currencies we use like the Indian Rupee, the Euro, the Dollar and many more. Cryptocurrencies are accepted as transactional currency in Australia, USA, Canada and the European Union.
The first cryptocurrency to surface on the market was the “Bitcoin.”
So, now let’s get on with the advantages and disadvantages of cryptocurrency:
- Cryptocurrency is easily available to the public. By solving the Blocks(complex algorithms), the user is also capable of mining the currency. There are many types of cryptocurrencies available in the market.
- Making a payment with cryptocurrency is quite easy, and it takes only a maximum of few seconds.
- The cryptocurrency payments do not have the hassle of the processing fee, time delay and any third party access. You can make direct payments to your opposite party without the entering credit or debit card details, linking your wallets. All you need is the wallet address of the person to whom you are going to make the payment.
- There is no need to share your identity or the transaction carried out by you. It is a decentralized process meaning there is no supervising authority. Just like the saying it only takes two people to have a relationship, not three.
- You are the master of your own money and with no third person involved like banks.
- Transfer payments to any part of the world anywhere and anytime.
- It is difficult to understand and you need technical knowledge to make it work.’
- Lack of information on the subject makes its users vulnerable to hackers.
- Cryptocurrencies are not accepted widely, and many countries including India have not legally approved cryptocurrencies.
- You cannot retrieve the money if your cryptocurrency is hacked and as there is no supervising authority, there is no one to turn to if your account is hacked.
- If you paid the wrong guy by mistake, then you can’t get the payment back. The most you can do is that you request the person to refund the money back.
- They are very volatile in nature, and their values are unpredictable. They will plummet one day and go up the following day.
With its pros and cons, cryptocurrency is slowly consolidating its position in the financial world. The countries of Singapore and Switzerland are leading in the use of cryptocurrency. The benefits of cryptocurrency are far outweighing its risk, so the fate and the direction of the cryptocurrency is yet to be paved and let’s see what happens in the future.
Well, hope it is informative for you all too. If you can add some point to this post, will be most grateful.
As usual, Namaste, Au Revoir, Sayonara and a simple Vanakkam to my readers out there where ever you are.