Cryptocurrencies are becoming popular these days because they are easy to use and trade, also cryptocurrencies are more secure, fast and decentralized.
Cryptocurrencies are bringing evolutionary changes in the payment system, but wait.. everything on earth has pros and cons, also cryptocurrencies have their own good and bad side means just look at some advantages and disadvantages of cryptocurrencies.
Let’s start with a good side…
Advantages of Cryptocurrency.
Easy to Use.
You know the procedure for opening a simple bank account they are asking you several documents if there are any mistakes in documents then they refuse to open an account, also accessing your funds in different geographical location is a little bit hard.
In the case of cryptocurrency you just need a device that able access the internet with the help of the device, you can create your wallet and use where ever and whenever you want.
Decentralization.
You know that most of the cryptocurrencies have no central authority to control, the network is distributed to all participants, each computer mining nodes is a member of this system.
This means that the central authority has no power to dictate rules for owners of coins. And even if some part of the network goes offline, the payment system will continue to operate stably.
You Can Use Crypto Internationally.
When you talk about transactions using cryptocurrencies then there are no limits. You may be in a different part of the world and the receiver might be in some other hemisphere, you can still transfer the amount without any hassle.
The inter-country transaction is extremely easy with cryptocurrency because its function is not under the control of any central bank.
Also, coins cannot be faked, copied or spent twice. These capabilities guarantee the integrity of the entire system. Every month the number of online shops, resources, and companies to accept BTC is expanding.
Low Operation Cost.
Transferring money by using any other online forum or bank gateway is expensive as they levy considerable fees for the transaction.
If you transfer crypto no need to pay commission and fees to banks and other organizations. That does not mean cryptocurrencies are free for transactions, crypto is charging a very small amount of the transaction as a fee, and in crypto’s, it is the buyer paying the small fee.
The issue with these fees is that they often pile up and could quickly pile up. Transaction fees are very small and only the buyer gets hit with it.
You Can Do Unlimited Transactions.
In cryptocurrencies, you can pay using your wallet to anyone, anywhere and any amount. The transaction cannot be controlled or prevented, so you can make transfers anywhere in the world wherever another user with a crypto wallet is located.
Fast Transactions.
With cryptos, you don’t need to wait a couple of days for your business to receive the money. cryptocurrencies are based on the blockchain technology, it removes delays, payment of fees and a host of other third party approval that might have been present.
Transparency.
In cryptocurrency, every transaction recorded on the blockchain. The blockchain keeps information about everything.
If anyone has publicly used the crypto address, then anyone can see how much crypto is owned. If the address is not publicly confirmed, then no one will ever know that it belongs to someone
Anonymity.
In cryptocurrencies, you’re able to create an infinite number of wallets without reference to the name, address or any other information.
Highly Secured.
All your transactions will be secure as it is using cryptography. It is next to impossible for any person other than the owner of the wallet to make any payment from the wallet unless they were hacked, don’t worry there are many ways to protect yourself.
No Inflation.
Coins are limited to use and mine in cryptocurrencies therefore neither political forces nor corporations able to change this order, there is no possibility for the development of the inflation in the system.
Peer-to-Peer Cryptocurrency Network.
Cryptocurrencies do not have any master server to manage all transactions. Exchange of information is between 2-3 or more software clients. All installed by users program-wallets are part of a crypto network.
Each client stores a record of all committed transactions and the number of crypto in each wallet. Transactions are made by hundreds of distributed servers. Neither banks or taxes nor governments can control the exchange of money between.
Above are some Advantages of Cryptocurrencies, now move on and look at some disadvantage of cryptocurrencies.
Disadvantages of Cryptocurrency.
Lack of Knowlege.
Most people are not aware of how to use cryptocurrency and hence open themselves to the hacker. The digital currency technology is somewhat complex and therefore one needs to be mindful of it before investing.
Strong Volatility.
Since from the beginnings, cryptocurrencies having highly volatile nature. This is one of the main reasons mass adoption is taking longer than it should. Many corporations don’t want to deal with a form of money that is going to go through huge swings in volatility.
Large Risks of Investing in Cryptocurrency.
Crypto investments are involved high risk because of its volatile nature and terrorist and other illegal activity financings, lack of a central issuer, which means that there is no legal formal entity to guaranty in case of any bankruptcy.
Not Accepted Widely.
Still, cryptocurrencies are not acceptable in countries and online websites, Very few countries have legalized the use of cryptocurrencies. It makes it impractical for everyday use. Due to a lack of acceptance.
Not Able to Reverse the Payment.
If you mistakenly pay someone by using cryptocurrency, then there is no way to get a refund of the amount paid. All you can do is to ask the person for a refund and if your request is turned down, then just forget about the money.
Storing of Cryptocurrencies.
If you have stored digital currency on your phone or computer, you better remember your password and not lose those devices. Losing your coins means you won’t be able to retrieve it.
That’s why to use secure offline wallets like Ledger Nano.
There is always pros and cons to everything in life and this is why you need to weigh both actions thoroughly before making a decision.
Cryptocurrencies are here because of making our day to day transactions easy now as time passes technology usage also getting a wide range as well as more and more pros and cons added to the technology, it totally depends upon us how we use technology to make our lives better and easier.
Olalekan Ajimoti – Blogger, Content Writer, and Digital Marketer helping brands and retailers build 8-figure e-commerce since 2016.
As a corporate trainer, brand communications expert, and brand consultant, I help people start, stay and grow in business leveraging digital skills and traditional expertise.
