Cryptocurrency is a form of digital money that can be used as a standard currency wherever it is accepted. It is the latest craze in the financial world right now. But, since it is not in the regulation of the government, it is not issued by banking bodies.
Cryptocurrencies do not share the same level of stability and protection like physical currencies, but that has not stopped the masses from using it. Thanks to cryptocurrency’s recent boom, many people around the world have started its different forms like Ethereum and Bitcoin, since these two are the most valuable. Countries like Switzerland and Singapore have high cryptocurrency usage.
Below are some most common advantages of using cryptocurrencies:
- Easy Access
Readily available for the general public, cryptocurrencies can be used by almost anyone. It is a decentralized operation and investors all over the world can access them easily. There are various projects trying to raise fund through the use of cryptocurrency and anyone that can make online fund transfers can become a part of such projects.
- Easy and quick payments
Making payment is very easy using cryptocurrencies because it just takes a few seconds. The reason it is very fast is that you do not require many details or even enter your debit or credit card details. You just need the address of the wallet of the enterprise or person you are sending the payment to. The amount is credited to the receiver within a few seconds or minutes, depending on the cryptocurrency.
- Fast settlements
With cryptocurrencies, you do not have to wait for days to receive money. Cryptocurrencies are based on blockchain technology, which removes a host of third party approvals, payment of fees, and delays. The reason why there is a quick settlement because the peer-to-peer nature of the network eliminates middlemen.
- Highly secured
All the transactions are secured as cryptocurrencies use NSA created cryptography. Hence, it is almost impossible for any other person other than the authorized one to make a payment from the wallet, except when it gets hacked, for which there are many protective measures.
Every coin has two sides. Hence, here are some disadvantages of cryptocurrencies:
- Difficult to understand and learn
Cryptocurrencies are comparatively very new to the financial game and have somewhat of a learning curve. There are often times when people end up investing in cryptocurrencies and lose money to something they don’t know anything about.
- Not accepted widely
Since it is new, cryptocurrencies are not accepted everywhere. A lot of companies and websites decline payment in forms of cryptocurrencies since it is impractical for everyday use. Hence, a very few countries have legalized its use.
- Volatility and uncertainty
Cryptocurrencies are very volatile because they are new. Volatility and uncertainty are some of the main reasons why the mass is hesitating to accept cryptocurrencies. Many companies do not want to deal with the digital money that can go from one end of the swing to another within minutes or hours.
An unbiased conclusion would be that cryptocurrencies have a lot of potential in the near future, but not now because of the problems. Cryptocurrencies are not perfect and still in development, but it is slowly and steadily consolidating its place in the world.