With the involvement of technology and industrialization, the world of Crypto is gaining an upper hand over traditional currency. Hence, many people are leaving the general route and opting for the same.
However, here’s the thing.
Like some of us, Cryptocurrency suffers from split personality as well. Therefore, sometimes, you may find it to be suitable for investment, while, other times, it’ll be too volatile to look at. Please keep reading this article till the end to know more about it.
Cryptocurrency – The “Good” Personality
It’s been quite a while since the first Cryptocurrency, Bitcoin, was released. And, since then, it has come quite a long way. That has only happened due to the “good” personality of it. Here’s what you need to know about the same.
Advantage – 1: Inflation Resistant
Whether you believe it or not, inflation can sometimes lead to a massive decline in price for almost any currency. However, this doesn’t work in the case of Cryptocurrency.
For example, around 21 million BTCs have been released throughout the world since 2009. Hence, if the demand of the same increases, its overall value will boost as well.
This, in turn, will keep up the Cryptocurrency market and prevent the risk of inflation in the long run. But, external inflation might affect the price of the same.
Advantage – 2: Self-Managed And -Governed
Maintenance and governance of any currency can be a huge factor to its overall development. And, for the same, you may have to pay additional money in the name of “taxation.”
However, Cryptocurrency is made on the blockchain technology, which can maintain the core platform automatically. Therefore, there’s no need to pay anything extra here.
Also, it can keep each and every transaction record up-to-date and accurate. Thus, you don’t have to worry about losing any information anytime soon.
Advantage – 3: Private And Secure
The blockchain technology, in essence, is quite secure. As per experts, no one can steal from you, especially if you’re using a platform like Bitcoin Era Software.
And, even if they do, they won’t be able to use the same, as they don’t have the ownership of the stolen Bitcoin or Cryptocurrency.
Additionally, the whole transaction procedure will be done on a secure network as well. Thus, it will be even more difficult for someone to track the same in any manner.
Cryptocurrency – The “Bad” Personality
Now, let’s talk about the dark side of the moon and see how Cryptocurrency might affect your dream of integrating technological evolution in your business.
Disadvantage – 1: Illegal Transactions
As Cryptocurrency is quite private and secure, it’ll be almost impossible for the government or any other authority to track down the same. Thus, in some cases, it can be used to perform illegal transactions and delve in the dark web as well.
Disadvantage – 2: The Risk Is Much Higher
Any Cryptocurrency profile comes with an untraceable source that can be utilized by a single person. Now, if you end up losing the same to your wallet, there’s no way you can get it back. This might result in a massive financial loss for you depending on how many coins you had.
Disadvantage – 3: Adverse Effect On The Environment
The practice of mining Cryptocurrency requires quite a lot of electricity and power input. So, the procedure becomes massively energy-intensive from almost every viewpoint. It, in turn, can cause adverse effects on the environment and increase your carbon footprint too.
So, What Should You Do?
Honestly, the Cryptocurrency market does look quite alluring to everyone due to the massive potential it has. Nonetheless, it’s quite vulnerable and volatile as well. Therefore, if you’re not careful enough about your approach, you may end up losing everything.
Due to this reason, it’s always best to talk to a professional before entering the market. Also, while you’re at it, you’ll need to create a roadmap for your future. This way, it’ll be easier for you to stick to the plan till the end and work accordingly.
Anyway, now, we’ll conclude this article. If you need any help or assistance, don’t forget to comment below. We’ll help you out as soon as we can.
Read more:
Taking A Closer Look At The Split Personality Of The Cryptocurrency Market