In today’s world, one of the most exciting things to happen is the introduction of digital currency. One form of digital currency is known as cryptocurrency. A cryptocurrency is a form of digital currency that is becoming widely popular throughout the world. These are in the shape of virtual coins that are treated more like stock. However, with the cryptocurrency, you can always cash out and also use the virtual currency to buy things online as well as in stores. However, this feature is not yet readily available throughout the world. Rather, only a few countries have come out in full support of this. However, it must also be noticed that there are a lot of problems when it comes to cryptocurrency discord is making it more of a liability with each passing day. Some examples of different cryptocurrencies include Bitcoin, Litecoin, Onecoin, Xeniacoin, and XRP amongst others.
Cons of Cryptocurrency?
Enlisted and explained in detail below are some common disadvantages when it comes to cryptocurrency.
Probably one of the most concerning things with cryptocurrency is the fact that scalability is a big issue. Even though the number of virtual coins is increasing day by day, it is still not as accessible as the VISA, PayPal, Mastercard, etc. The speed of conducting the transactions is also a very important factor that is not favorable for cryptocurrency. For it to become a good option in the future, the infrastructural development for the digital currency is extremely important and therefore must be massively scaled.
Since cryptocurrency is a digital technology, there are great chances that such a technology will be subject to many different cybersecurity breaches, especially in the future. Mitigating the factor of security breaches is extremely critical moving forward since people need to be in full confidence if they are to save and use up the currency in the future. To keep up the security infrastructure, many different industrial giants are trying their best to get involved directly. However, the use of enhanced cybersecurity measures is still the need of the hour.
One of the most concerning things about cryptocurrency is that it is linked directly to very volatile pricing and also a lack of inherent value. Many industrial giants, for this specific reason, feel that the cryptocurrency is more of a bubble that will eventually burst in the years to come. However, the different currencies and the companies handling them must eventually come together and think of a way to link up their respective digital currencies directly to tangible and intangible assets. Such a step will not only decrease price volatility but also increase customer confidence in this process.
Cryptocurrency is definitely a force to be reckoned with. However, if it is to become as reliable and as useable as the normal currency, a few steps must be taken to overcome some of the disadvantages of the cryptocurrency.