Published on May 7th, 2021 | by Bibhuranjan

Are cryptocurrencies good for the world?

Ever came across the term ‘cryptocurrency’ while reading your morning newspaper? Ever heard your friends investing in bitcoins and wondered about the pros and cons? Where do Cryptocurrencies stand in the world of finance?

Cryptocurrency is a virtual currency in a decentralized blockchain issued outside the autonomy or authority of a central organization. It is not paper-based, documented by an electronic database secured by various cryptographic tools. Tapped with immense power and potential, Cryptocurrencies can be a double-edged sword.

Merits of Cryptocurrencies

Economic growth – It is undeniable that the finances of companies and individuals invested in bitcoin have boomed overnight. Bitcoin evolution login, the first cryptocurrency introduced in 2009, has allowed many entrepreneurs to flourish their businesses.
Remote access – Cryptocurrencies have the power to reach areas where the banks fail to. A chunk of the disadvantaged population does not have the privilege to participate in regular banking. Cryptocurrency provides financial aid to them through various apps with user-friendly interfaces and fair financial practices across oceans with the help of a network of a few computers.
Minimal cost – The virtual world of cryptocurrency does not recognize anything tangible. Therefore expenses that include infrastructure, wages of employees don’t count. The enterprise spends less and returns more.
Documentation – Since a ledger-based system carefully records the ownership of cryptocurrency there is more transparency and accountability. Every newly created block goes through verification from each node before getting confirmation which gives very little space to fraudulent transactions
Reliable – Its non-correlation with the market makes it a trustworthy idea to invest in like bullion, as it provides a strong barrier from risk.
Socially beneficial – Cryptocurrency can be a powerful tool in generating funds with its quick reach to the biggest names. Online voting can also be a part of its well-knit network of business leaders and entrepreneurs

Demerits of cryptocurrencies

Until now, the world has seen cryptocurrencies from a pigeonholed perspective. If its total capitalization in the market is less than that of big companies then we must realize that it does not have the potential to affect the economy massively.
Cryptocurrencies attract various security threats from all around the world. As it is based on a network of computers it is prone to hacks and illegal mining. Fraudsters promise unbelievable results to investors to rip them off all their money in the end.
As a unified database does not store cryptocurrencies they can easily be lost by misplacing private keys to the cold storage or simply through a crashed hard drive. Cryptocurrency exchanges also attract misuse by people using such sites to facilitate money laundering and tax evasions.
Your investment has the chance to fail not only because of cyber theft or fraudsters but simply because of the ever-present competition and fluctuations in the market. Some economists believe that cryptocurrency is just a trend or speculation playing from the sidelines that will soon die with rapid peaks and troughs.

With the changing world, cryptocurrency has shattered the conventional financial systems to create a much more heterogeneous economy that benefits the haves and the have-nots. It is still now at its adolescent stage to affect the global economy adversely. It has promising potential as another alternative to banking, stocks, and bonds for those who want a much more fluid transaction.

Photo by Executium on Unsplash

Tags: Bitcoin, bitcoin wallet, cryptocurrency

About the Author

Bibhuranjan Editorial Officer, technofaq.org I'm an avid tech enthusiast at heart. I like to mug up on new and exciting developments on science and tech and have a deep love for PC gaming. Other hobbies include writing blog posts, music and DIY projects.