Advantages of crypto currency
For the last few years, the crypto market is showing an exponential growth due to which cryptocurrencies have seen a steep rise in their value turning into valuable assets, the face value of cryptocurrencies has increased remarkably giving a large amount of payback to the investors thus apart from being used as a source of online transactions it is also seen as a sphere of investment providing high returns. Having gained much confidence in the investment game crypto also aids cross-border payments making intra as well as international trade easy and efficient. The global acceptance of the currency makes it easier for payment in any part of the world as cryptocurrency is not confined to the border of any country. online transactions using digital currency take place from the sender’s digital wallet to the receiver’s digital wallet in a straightforward manner making the exchange private, and quick, and also eliminating the involvement of third-party making it a no-fee payment and a faster process of online trading. The Crypto market is a decentralized market without any jurisdiction like a bank or any other government regulatory body eliminating intermediaries and pushing the crypto market outside the boundaries of any set of norms also making the monetary policies non-applicable on crypt The purchase, storage, and sell of crypto is not under the central bank like fiat currency and it only depends on the wish of the owner. A considerable number of people do not hold a bank account restricting them from investing and trading but Investment in crypto does not always require a bank account, and thus it also helps people to invest even if the individual lacks exposure to basic banking facilities making it more accessible and rules free to invest. The digital nature of cryptocurrencies helps the individual to use this method of exchange round the clock i.e. it is a 24*7 available transaction method across the globe with high security as it involves blockchain technology. Thus these advantages over fiat money are making cryptocurrencies like bitcoin more acceptable and user-friendly across the globe. Digitalization is the future and cryptocurrencies are one of the major steps in making trading online and secure.
Disadvantages of cryptocurrency
Cryptocurrencies like bitcoin are digital in nature and accessed through smartphones and computers, being internet money is under the threat of being hacked. Like any other online information, the presence of currency digitally makes them vulnerable to online fraud and they may fall in the hands of hackers to prevent that from happening it may require regular updated security and control beyond what is required for fiat currency. Refunds and cancellations are nearly impossible in this kind of transaction. Bitcoin and other currencies are decentralized in nature, out of control of any regulatory authority thus making crypto highly vulnerable in terms of security. Unlike other investible materials like diamond and gold which are physical entities, crypto is not present in physical form thus investment in crypto may be a highly risky investment. The global usage of crypto is not so true and it cannot be seen as a universal medium of exchange as crypto has been banned by many countries due to high financial risks involved and lack of central controlling authority and data losses can cause a high financial loss to any individual or organization. Mining cryptocurrency requires a large amount of investment in form of technology and brain resources making it less environmentally friendly as compared to fiat currency. The use of digital currencies in illicit activities is a major issue and crypto is not left behind. A highly secure network of crypto makes it untraceable and helps it to be used in illegal transactions like buying drugs, terrorist activities, etc. Thus these are the several reasons which are holding back the population to use crypto as a mode of exchange and investment.