Advantages & disadvantages of crypt...

Advantages & disadvantages of cryptocurrency

From here we will conclude what are the advantages of cryptocurrency:

● No inflation—the maximum number of coins is strictly limited (for example, 21 million in Bitcoin).Since there are neither political forces nor corporations that can change this order, there is no possibility of developing inflation in the system.

● Peer-to-peer cryptocurrency network—in such networks there is no master server,which is responsible for all operations.The exchange of information (in this case—money)is between two and three or more software customers.All installed by programmers-users who are part of the network.Each client stores a record of all transactions executed and the number in each wallet.Transactions are made from hundreds of distributed servers.Neither banks nor taxes, nor governments can control the exchange of money between.

● Unlimited possibilities for a transaction—each of the wallet holders can pay to everyone, anywhere and any amount.The transaction cannot be controlled or prevented, so you can make transfers anywhere in the world wherever a user is placed with a wallet.

● No borders—payments made in this system are impossible for cancelation.Coins cannot be forged, copied or spent twice.These opportunities guarantee the integrity of the field system.

● Decentralization—there is no central controlling authority in the network, the network is alluded to all participants, each computer crypto-valued member is a member of this system.This means that the central government has no power to dictate rules to cryptocurrency owners.And even if some part of the network goes offline, the payment system will continue to function steadily.

● Anonymity—completely anonymous and at the same time completely transparent.Each company can create an infinite number of crypto addresses, regardless of name,address, or any other information.

● Transparency—Bitcoin stores the history of transactions that have ever happened.It is called a sequential block of blocks or a blockhead.The block keeps information about everything.So, if the company publicly uses the Bitcoin address for example, then everyone can see how much Bitcoin is owned.If the address of the company is not publicly confirmed, then nobody will ever know that it belongs to this company.For full anonymity, companies use the unique Bitcoin address for each transaction.Bitcoin’s open digging code applies the same algorithms used in online banking.The only difference in online banking is the disclosure of information to users.All information about the transaction in the BTC network is shared (like, when), but there is no data for the recipient or the sender of the currencies (no access to the owner’s personal data).

● Transaction speed—the ability to send money everywhere and everyone within minutes after the network of the cryptocurrency processes the payment.

Cryptocurrency opponents argue that cryptocurrencies are highly unstable, can be used for money laundering or financing illegal activities.Some scholars note that Bitcoin is illiquid and has shown price volatility and that the discounted monetary value of Bitcoin is zero.Further, the currency does not have a central issuer, and that there is no financial or economic basis for its creation.The disadvantages are:

● Strong instability.

● Difficult to understand—crypto-valves are relatively new and come with a learning curve.People end up investing without proper knowledge and are losing money for something they have not learned.

● Lack of knowledge—people are not aware of how to use cyberattacks and hence be exposed to hackers.The technology is somewhat complex and therefore we need to educate ourselves before investing.

● There is no way to cancel the payment—if you’re mistaken for someone using the cryptocurrency, then there is no way to get a refund of the amount paid.All you can do is asking the person to return the funds and if your request is denied, then just forget the money.Major risks for investing in cryptocurrencies need to be considered in the medium and long term.

Many experts believe that the list of deficiencies is much longer and related to the risk of money laundering, terrorist financing and other illegal activities, the lack of a central publisher, which means that there is no legal formal guarantee person in the case of bankruptcy, and the like.Although it is very difficult to predict, many academics and professionals in this topic argue that the future of cryptocurrency is bright because it will remove trade barriers and intermediaries, reduce transaction costs, thereby boosting trade and the economy.