Things To Know About Cryptocurrency
For those of you who have been living under a rock, allow me to be the one to bring you up to date. Currently, in this modernized world of ours, money does not merely exist in the form of paper that we see in our wallets. In addition to that, the ways we are able to use money have also changed over time. It began with the barter system back in the day when we had to exchange for goods, where Uncle Sam had to walk 5 miles and cross the dashing river filled with crocodiles just to get the pack of chicken from Aunt Sarah in the next village over. From there it shifted to merchants using gold and silver and bronze coins as currency for their trade. Fast-forward to the future, it moved to paper money that we use today. Currently, we are able to use systems such as e-wallets, also known as electronic wallets, where we’re able to do bank transfers and withdraw cash immediately from ATMs, should we need the money.
However, probably the most sought after right now are the cryptocurrencies used by people all around. As amazing as this sounds, it is important for us to realize that no matter how amazing something can be, there are always downsides to it. Here are some of the disadvantages of cryptocurrency.
To begin with, let’s talk about the speed of the transaction. Although transactions made using cryptocurrency is similar to how transactions are made using money in our bank accounts, speed is 1 issue that differs. Despite the advantages that people get by using cryptocurrency, it is not as quick or efficient as it would be should someone use Visa or MasterCard. This is because the number of digital coins that exist within the world cryptocurrency is rapidly increasing, hence the time needed to process the digital coins take longer than that of regular transactions.
Another downside to using cryptocurrency is that it is open to cybersecurity breaches. As cryptocurrencies only operate and exist both digitally and virtually, it makes it more difficult to track. Thus, this provides criminals such as hackers the perfect opportunity to breach the security measures applied, which in turn may lead to you losing all the currencies that you have saved.
Another issue to be concerned with is the lack of regulation. As mentioned before, cryptocurrencies are open to security breaches and are difficult to track. Should you be subjected to a case where you are robbed of your currencies, you will not be able to report the issue to anyone, as cryptocurrency runs on a decentralized system. This means that there is no governing authority, hence no one to question what is right or wrong. Your only option is to deal with the issue yourself.
Now, I’m not telling you that cryptocurrency doesn’t have its benefits, and it’s only bad. No, this is because all things have its own downsides as well as upsides. It is up to us to determine and clarified information before we decide to dabble in it. So, if you’re interested in dabbling in cryptocurrency, I highly advise you to check out the trending crypto news right here.