Pros and cons of Cryptocurrencies

Pros and cons of Cryptocurrencies

Cryptocurrencies are the byproduct of the internet. Cryptocurrency is a decentralized digitalized internet-based form of exchange that uses cryptographic functions to complete the monetary transaction. 

Let's discuss the pros and cons of Cryptocurrencies. 

Advantages:

• The most prominent one is that transactions through cryptocurrency are quick and easeful compared to conventional payment methods. As this currency is decentralized, the transaction can be done globally without desideratum of any permission. 
• Moreover, the elimination of a third party is also beneficial to the user. In this digital payment, there is no place for any broker or intermediary because every transaction is a straight linkage between payer and recipient. 
• Besides, the value of the cryptocurrency has been booming since 2010, so the investment in cryptocurrency will be fruitful for investors if they understand the concept of the same very consciously.

Disadvantages:

• The biggest demerit of cryptocurrency is that transaction cannot be undone once it is finished. Even Satoshi Nakamoto cannot reverse the transaction. This disadvantage leads to one more, which is that there is no real-world relation of identities which are used in crypto-transfer. It is nearly impossible to identify the location and identification of people involved in the transaction of cryptocurrency. This anonymity will create issues in society, as all illegal transactions are being done on this platform. 
• Apart from these, there will be a loss of crypto wallet if the user forgets the wallet password, and there is no way to retrieve that wallet. Furthermore, the concept of cryptocurrency is complicated and risky. So it is not well accepted globally as the conventional methods. Thus, people tend to lose their money if they invest without analyzing all aspects of cryptocurrency.

Conclusion:

Cryptocurrencies are the new normal, and the people who accept this newness will be going to get wealthy. However, the investment or transaction done without considering the demerits will be futile. It is very volatile and uncertain as well as people should learn more about these currencies as they are updating day by day. 

So how many cryptocurrencies do you know?