There has been a lot of debate surrounding cryptocurrency and whether or not people should invest. We hear about this debate daily — the same way we hear about sports news.
Come with us as we take a deeper look into cryptocurrency and what is truly going on so that you can make an informed decision.
Cryptocurrency
There have always been questions about whether or not cryptocurrency is sustainable and if so where does that leave fiat currencies. The truth is that to get a clear picture of crypto you first need to understand crypto.
When we think of cryptocurrency we need to think of real money the only difference would be that crypto is digital. This means that there are no physical notes or coins attached to crypto. This also means that you can use it in the same manner as fiat currencies in terms of making transfers and receiving transfers.
The issue of safety has concerned many as normal money can be seen and withdrawn immediately when necessary. The truth is that cryptocurrency is protected through cryptography which is the study and practice of certain techniques which are meant to protect the information within the network.
Blockchain plays a very significant role in cryptocurrency and operates as a type of ledger that records information concerning transactions. Not only does blockchain record transactions but it also helps protect the network. When using blockchain technology it becomes difficult to hack, change or cheat the system.
What are the Negatives of Using Cryptocurrency?
There are many reasons why people are not particularly fond of using cryptocurrency. Below we take a look at some of the reasons why people are not gravitating towards crypto.
Lack of Availability
Cryptocurrency may be a means of exchange however it isn’t available everywhere in the world. Although a lot of businesses have welcomed it as a means of exchange there are still a few that have not. This makes it hard to conduct transactions and pay for things if cryptocurrency is your sole means of exchange.
It’s important to note that there have also been a few countries that have banned or restricted the use of cryptocurrency and certain forms of it.
Volatility
The cryptocurrency market is highly volatile meaning that things can change quickly. This means that it can gain and lose value very quickly which is a very high risk for some. This brings in the argument of sustainability within cryptocurrency.
Many believe that cryptocurrency is unsustainable because it is a digital currency. Although cryptocurrencies such as Bitcoin have been around for a while many are still not convinced.
Scams
Scams within cryptocurrency have played a major role in how the public views crypto. There have been multiple scams associated with cryptocurrency leaving grounds for a lack of trust among consumers.
Scams or fraudulent activity have also come through the platforms used to purchase crypto. Many have complained that they were unable to access their funds or have been locked out of their accounts.
Reasons Why People are Loving Cryptocurrency
There are many reasons why people love cryptocurrency. Below we take a look at why people love crypto.
Decentralization
A lot of people are drawn towards crypto because it is decentralized. This simply means that no singular person or organization has power. This means that all those who are involved in the network get to make decisions that promote equality.
Inflation
Many of us dislike this work because we associate it with a higher cost of living however this is good for those using crypto. Cryptocurrency is said to be a good hedge against inflation meaning that its value will increase over time. For those making investments that sounds pretty good.
Bottom Line
Cryptocurrency is said to be a lot of things including a scam however you need to decide for yourself. Just like many things in life, there are risks within everything. Our job is to make sure that we take calculated risks and do the necessary research.
