Cryptocurrencies, being as new as they are, are still an uncertain technology. As such, they have their balance of benefits and disadvantages. Here, we will discuss some of these.
Advantages of cryptos
There are several advantages one can list in connection to cryptos. For one, they are finite in number. This means that they will not lose all their value all of a sudden. People cannot keep producing them out of thin air.
The main benefit, however, is the lack of regulation. The decentralised nature of cryptocurrencies means that large banks and governments have less control over them. Over time, these sorts of institutions have become increasingly controlling over the world economy. Especially with the rise of technology. Cryptocurrencies should be able to lessen this effect. People will be less dependent on fiat currencies and can have more anonymity overall. Cryptos are also a great place for investment in times of economic struggle.
The blockchain gives a great amount of anonymity to their users, and they are quite secure. As long as one is careful with where they store their transfer data, there should be no problem.
The lack of centralisation also means less hoops to jump through. People have to pay less when it comes to banking costs, whether abroad or domestically. They will no longer need banks to keep all their transactions secure, as the blockchain already does this for them. There will also be a lack of companies like Visa or PayPal taking a cut of every transaction. Essentially, the online community works in the stead of corporations.
Another thing is that, through crypto mining, these currencies are self-perpetuating systems. As long as people have compensation for participating in blockchains, this will continue.
There are the main advantages one can point to when it comes to cryptocurrencies. We shall continue with the disadvantages in the next article.