Cryptocurrency is a form of digital money which is designed to be private, secure and, in many cases, anonymous. It is decentralized by a network of computers instead of a single person or a company. Though there is increase in usage of cryptocurrencies, a person still needs to consider the pros and cons of cryptocurrencies. They need to know the benefits that are related with it and also be aware of its drawbacks. Some of the pros and cons of Cryptocurrency are as below.
Pros of Cryptocurreny
Transaction of large amounts of cryptocurrency can be done easily without any detection unlike transaction of physical money from banks or any other places,. It is much easier and safer to carry billions of dollars in Bitcoins in a memory drive than physical money
- No need for banks anymore
Banks as third parties are more needed if we use cryptocurrency because of the principles of block chain is in decentralization which means that the individuals to have full control over their money with no need of the third party.
- Cryptocurrency is transparent:
With some cryptocurrencies, all transactions are recorded and monitored. If a transaction is complete and is on the ledger, it is most likely not to change. The transactions history can be accessed for verification by anyone and anytime.
- Inflation is unlikely:
There is no possibility of inflation as there is finite number of a particular cryptocurrency.
- Digital e-cash
Cryptocurrency makes online shopping possible in a very easy way which increase the speed of transactions. Unlike e-banking, you need not wait for several working days for money to process. The transaction happens in few minutes.
Also Read: Pros and Cons of Bitcoin
Cons of Cryptocurrency
- No transparency and security
There is lack of information and understanding about cryptocurrency transactions making it difficult for governments to regulate the tax. This is also leading to a host of criminal activity and problems for investors. Furthermore, there is a fear of hacking of exchanges causing a lot of uncertainty
- Lack of real-world use
Though there is increase in use of cryptocurrency’s, there still lacks application in the real world. There still aren’t many businesses who accept Bitcoin or any other cryptocurrencies.
- Environment damage
Large amounts of energy used for Bitcoin mining can prove to be detrimental to the environment.
- High volatility
There is fluctuation in the value of cryptocurrency. There is compromise in investor’s confidence and some investors feel difficult to be certain about how much cryptocurrency they actually have.
Cryptocurrency is the currency of future as many people say. Well, time will show how futuristic it is, but at present, it is not the case. The pros and cons of cryptocurrency is pretty straight forward and simple. It is good to go cashless in future, but it will take time and trust. These are few of the cryptocurrency pros and cons, comment down below if you think of adding some more.