HomeCurrency

What Are The Advantages And Disadvantages That Comes With Cryptocurrencies?

What Are The Advantages And Disadvantages That Comes With Cryptocurrencies?
Like Tweet Pin it Share Share Email

Cryptocurrency first surfaced in the market in 2009. At that time people never knew what cryptocurrency was and how it performed. This made the Cryptocurrency gain some negative publicity. But some of the traders saw some future possibilities in the Cryptocurrency and started investing in them. As the people’s trust increases on the Cryptocurrencies, its value skyrocketed. It was 2017 when the evaluation of the Bitcoin reached to its peak value of $20,000.

After such an event, many traders all over the world start showing their interest in Cryptocurrencies investments. And if you will see today, you will find that 6 out of every 10 traders or investors are related to the Cryptocurrency trade in one way or another.

The trades have also become easier with the help of online platforms that provide cryptocurrency services. One such platform is www.bitcoinslifestyle.com, it provides some of the best Cryptocurrency services that you may like.

But before you start investing in the cryptocurrencies, you need to be aware of its advantages and disadvantages. This will help you to concrete your decision that are you really interested in investing in Cryptocurrencies.

Advantages of the Cryptocurrencies

To understand why people are showing their confidence in the Cryptocurrencies, you must need to understand what advantages you’ll get over fiat currency by using Cryptocurrencies.

1. Decentralized

The best part of the Cryptocurrencies is that they are decentralized. That means there are no governments that hold authority over the Cryptocurrency. All the Cryptocurrency goes through complex protocol and is managed by an interconnected network.

2. Cannot be Manipulated

When it comes down to the Cryptocurrency manipulation, then you can be sure of one thing that Cryptocurrency is not held by one person or organization. So it is not prone to any inflammation or manipulation. Since the Cryptocurrency exists in a digital environment, it does not have any physical form.

3. Cost of the Circulation

We all know that the printing of Currency costs quite a lot. But for the cryptocurrency, you can omit all these kinds of costs. As the value of the Cryptocurrency totally depend on the trust and exist on digital platforms.

4. Security

Cryptocurrency is embedded with blockchain technology. So, you can rest assured of its security. And as all your Cryptocurrency is present on the digital platform, this reduces fraud and thereat. Which usually happens with the fiat currency.

Disadvantages of the Cryptocurrencies

Enough with all the advantages. We must not look at only its good side. To make a fair decision, you must also need to have a good idea about its negative points.

1. Fiat Currency is Backed by the Government

There are still people who do not believe in the Cryptocurrency and use only fiat currency. And even if the federal government were to build a system to deal with all Cryptocurrency assets, then it will create a panic among the people of losing their Fiat currency assets.

2. Lack of Infrastructure

Today, we are living in a world where the whole system’s infrastructure is based on the Fiat currency. It will take quite a lot of effort to build an individual infrastructure only for cryptocurrencies. And even if a cryptocurrency infrastructure is made it will create uncertainty among the people.

3. It can Create Confusion

Right now, there are already more than thousands of cryptocurrencies in the world. This is already creating confusion among the people in which Cryptocurrencies are more valuable. And with so many coins in the market, it will hard to select one cryptocurrency as the basic unit of all the cryptocurrencies.

Conclusion

With being said, it is completely possible for the Cryptocurrency to take over the Cryptocurrency. However, it will take a considerable amount of year for that to happen (At Least for now, as the situation stands now).