There has been a lot of debate around cryptocurrency and whether people should invest or not. We hear about this debate every day — the same way we hear about sports news.
Join us as we take an in-depth look at cryptocurrency and what’s really happening so you can make an informed decision.
Cryptocurrency
There have always been questions about whether or not cryptocurrency is sustainable, and if so, where does it leave fiat currencies. The truth is that to get a clear picture of crypto you have to understand crypto first.
When we think of cryptocurrency we need to think of real money, the only difference would be that crypto is digital. This means there are no physical notes or coins attached to crypto. This also means that you can use it like fiat currencies in terms of transfers and receipts.
The issue of security has worried many people as ordinary money can be viewed and withdrawn instantly if needed. The truth is that cryptocurrency is protected by cryptography, which is the study and practice of specific techniques for protecting information within a network.
Blockchain plays a very important role in cryptocurrency and acts as a kind of ledger that records information about transactions. Not only does blockchain record transactions, it also helps secure the network. When using blockchain technology, it becomes difficult to hack, change or cheat the system.
What are the negative effects of using cryptocurrency?
There are many reasons why people are not particularly fond of using cryptocurrencies. Below we take a look at some of the reasons why people aren’t turning to crypto.
Lack of availability
Cryptocurrency can be a medium of exchange however it is not available everywhere in the world. While many businesses have embraced it through the exchange, there are still some that haven’t. If cryptocurrency is your only medium of exchange, it makes it difficult to make transactions and pay for things.
It is important to note that there are also some countries that have banned or restricted the use of cryptocurrency and some forms of it.
Ups and downs
The cryptocurrency market is highly volatile meaning things can change quickly. This means that it can gain and lose value very quickly which is very dangerous for some people. This brings the sustainability argument within cryptocurrency.
Many people believe that cryptocurrency is unsustainable because it is a digital currency. Even though cryptocurrencies like Bitcoin have been around for a while, many people are still not convinced.
Scams
Scams within cryptocurrency have played a major role in how the public views crypto. There have been numerous scams associated with cryptocurrency, which has led to a loss of confidence among consumers.
Scams or fraudulent activities have also come to light through the platforms used to buy crypto. Many people have complained that they are unable to access their funds or that their accounts have been locked out.
People love cryptocurrency
There are many reasons why people love cryptocurrencies. Below we take a look at why people love crypto.
Decentralization
Many people are attracted to crypto because it is decentralised. It simply means that no single person or institution is in power. This means that everyone involved in the network has to make decisions that promote equality.
Inflation
Many of us see this work because we associate it with a high cost of living, however it is good to use crypto. Cryptocurrency is said to be a good hedge with inflation which means it will increase in value over time. For those who invest they feel great.
The bottom line
Cryptocurrency has been called many things including a scheme but you need to decide for yourself. Like many things in life, there are risks involved in everything. Our job is to make sure we take calculated risks and do the necessary research.