The Pros And Cons Of Cryptocurrency

The Palm Beach Letter Newsletter has gained a well-deserved place among investors as the reliable source of investment picks and guidelines when it comes to cryptocurrency. Today, instead of diving into the world of investment, we Review the advantages and disadvantages of cryptocurrency. Gaining a clear understanding of the pros and con of this new currency has become even more crucial in the past year or so.
There was a time when its value hovered at a single price point. It jumped high about two years back and then dipped down again. The constant fluctuation in its worth proves that an investor is aware of the benefits it can offer and the risks it entails. We begin by taking a gander at the rewards it can reap.
• The founding technology of cryptocurrency – blockchain – is its most significant advantage. A distributed database that is open to all, Blockchain records any transaction that takes place between two parties. Their records can be verified and are absolute. A few blockchains and hence cryptocurrencies are even programmed to transact automatically.
• Cryptocurrency is one financial ecosystem that can be audited and verified while being completely transparent. It means stealing cryptocurrency is near impossible and forging them equally hard. When compared to traditional currency, these qualities make cryptocurrency foolproof and far better.
• Conventional money is controlled by central banks and governments. Additionally, they are stored in a single location. Therefore, it is easy for hackers and thieves to either steal the money or the information used to control it. Cryptocurrency is not controlled by a single piece of data or kept in one location. Thus, it can’t be stolen or hacked into.
• Cryptocurrencies are monitored by everyone who owns them. Therefore, it is indeed a democratic system of finance.
• Since access to cryptos is universal, it ensures that even citizens of developing countries have a say in the economy. Fait money causes the exclusion of a lot of third world countries from the global market. Cryptocurrency gives even those individuals a say in it.
It is apparent that cryptos have a leg up on conventional money. But many still see its disadvantages weighing heavily on its pros. Let’s take a look at the cons of virtual currency.
• The first point of contingency is that cryptos are not worth anything. The currencies people use around the world, at present, are either given a legal status or have a high value such as in the case of silver and gold. Cryptocurrency, on the other hand, has no underwritten value. They are not assigned value either by a government or because they are precious materials. Their only value comes from the fact that a particular group of people has accepted them as a token or virtual money. This is the major negative.
• The second disadvantage of cryptos is that processing them is a slow process which makes them virtually unusable for everyday transactions. A Visa card can make almost 25000 trades in a second while Bitcoin can only do 7, at the max.