The jury is still out on whether or not cryptocurrency is the new sliced bread of the financial world, or a failed fad like sugar-free gummy bears. It’s all up in the air, but since cryptocurrency shows no signs of stopping yet, let’s have a look at some of the pros and cons:
Aficionados are excited about cryptocurrency’s lack of real-world government and financial institution involvement. Banks have the unfortunate tendency to reduce the value of money over time thanks to inflation, which doesn’t happen to cryptocurrencies. Rather than having to keep track of a bank account, cryptocurrency accounting software does the heavy lifting for us, so we can put the calculator back in the desk drawer.
Another great thing about cryptocurrency is that the blockchain technology backing it is much more secure than traditional methods of payment because of its decentralised processing and recording features. Crypto coding is impossible to crack, which keeps your investment safe.
Another fun feature is the ability of investors to earn passive income via crypto staking, which uses your cryptocurrency to assist with the verification of blockchain protocol transactions. Although there are some risks involved, it can let you grow your crypto wallet without having to make a new purchase.
Where there are pros there are cons, so let’s look into them next:
The entire crypto ecosystem operates with a level of uncertainty, lacking a clear trajectory, causing unease among long-term investors who acknowledge the possibility of falling short of their anticipated substantial gains. The enduring nature of crypto remains uncertain, rendering it premature to ascertain its permanence. Consequently, what appears as a promising investment presently may ultimately diminish to mere low value digital assets in the upcoming year.
There are also risks for investors in it for the short-term. Prices have a tendency to fluctuate very rapidly, which means that some lucky folks got rich quick by buying in on the right day, whilst others lost their shirts because they entered just in time for a nasty crash. This does not bode well, as following these erratic shifts people become wary of accepting crypto as a form of payment that might become worthless at any time.
Nothing is gained without risk, let’s hope crypto is worth it.