The Pros And Cons Of Cryptocurrency

July 17, 2020

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Many facets of our lives are now digitized––money is no exception.

Have you noticed that paper money is on its way to being obsolete because so many people receive direct deposit and love the simplicity of their debit card?

Not to mention, cash carries germs, as we’ve heard lots about during the pandemic. Many businesses have turned to card only options in light of this.

But what about cryptocurrency?

You probably heard everyone raving about it a few years ago, but the excitement’s calmed down quite a bit. That doesn’t mean that it’s not a viable option you should keep in mind.

What’s Cryptocurrency?

Let’s start with the basic definition of cryptocurrency so we’re all on the same page. Cryptocurrency utilizes cryptographic methods and complex coding systems to encrypt sensitive information during data transfers. This protects your funds and personal information on a whole different level.

These transactions are virtually impenetrable due to the combination of mathematical and technological protocols created and put in place. This aspect of cryptocurrency is what makes it safer. Also, the details of transactions are kept private. No one can see who sent what, etc., because those rigorous mathematical and technological protocols protect it.

The Pros:

Different From Traditional Banking Transactions

One thing people hate about traditional banks is the fact that they can lock you out of your account anytime they want. They can hold onto your money and send you on a mission jumping through multiple hoops to get the money that’s ultimately yours.

Cryptocurrency is different because it is decentralized.

The government is not involved in your banking affairs or transactions in any way. Still, some people think that this creates a higher risk for our government and economy. The government won’t be able to touch your cryptocurrency, even if they wanted to.

No Transaction Fees

Often, when we have transactions with our central bank, there are numerous fees involved. This is another difference between this type of currency and an ordinary account. You’re essentially cutting out the middle man, so you’re saving on those extra fees.

You’ll be able to make payments just about anywhere without a banking institution peering into your affairs and asking questions. You can also make international payments without high fees because an international transaction is merely the same as domestic transactions, in the eyes of cryptocurrency.

Protected Transactions

There are so many ways that identities are compromised these days. Who wouldn’t look happily on an option that offered more protection? Your transactions and identity are guarded sternly in comparison to your ordinary transactions. However, you’re still susceptible to hackers and cybercriminals.

Something to note about cryptocurrency is that the transactions are irreversible. Once the translation is initiated, the funds sit in limbo while entering the blockchain by the miners.

The Cons:

Black Market Involvement

Bitcoin and other forms of cryptocurrency are primary payment sources for dark web transactions. This type of currency is hard to track, but that also means that it’s easier for criminals and hackers to utilize dark web transactions.

Tax Evasion

Even though the government can’t see your transaction, they want to slap taxes on the transactions. There is something of a loophole, but you’ll have to stay on top of tax-related issues and make sure you’re not audited about your cryptocurrency holdings and transactions.

If The Data Goes, So Will Your Funds

If you think about it, a big computer is storing your funds, and you have no way to liquidate them. If the data is breached and disappears, so will your funds, and there is no one to hold accountable.

You Need To Be Tech-Savvy To Invest In Cryptocurrency

Let’s be real; if you don’t have some working knowledge of cybersecurity and cyber happenings, cryptocurrency will end up being a dead-end for you. This type of investment requires you to have some working knowledge of the cyber world, or you might be throwing money down the drain!

Parting Thoughts

All investments have possible pros and cons, so cryptocurrency is no different in that respect. If you’re thinking about investing some funds in Bitcoin, or any other type of cryptocurrency, make sure you make yourself familiar with the pros and cons.

You need to make sure you are fully aware of everything involved in the process and if you’re not clear on something, it’s helpful to have someone to turn to for assistance.

It doesn’t need to be a stressful research experience. Why not make the most out of the experience and combine it with your favorite CBD product? Maybe you haven’t tried some, but some CBD tinctures are pretty sweet!

Please sit back and relax, dig into some cryptocurrency knowledge and information, and see where it takes you. It might just be the best thing that ever happened to you!

Image by WorldSpectrum from Pixabay

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