Advantages and Disadvantages of Cryptocurrency

Advantages

  – Cryptocurrencies are not affected by inflation, as are the various national currencies, nor do they follow the movements of traditional assets such as stocks.

–  You can make bitcoin payments 24/7 worldwide, even when there is no banking system.

  • International payments with bitcoins can be faster and cheaper than with traditional banking.
  • You can spend bitcoins in the same way you spend traditional digital currencies – from a desktop computer, mobile phone or debit card.
  • Bitcoin also has valuable features for business, such as accounting transparency and the “signature from more than one country” function, for more security. The very nature of the blockchain, where all transactions are public, improves business transparency.

Disadvantages 

However, cryptocurrencies are not immune to the threat of hacking. In the short history of Bitcoin, it has been the subject of numerous thefts. Thefts from specialized cryptocurrency exchanges, where the damage amounts to hundreds of millions of dollars, have recently become more frequent.

Bitcoin, for instance, is a relatively poor choice for conducting illegal business online, since the forensic analysis of the Bitcoin blockchain has helped authorities to arrest and prosecute criminals. More privacy-oriented coins do exist, however, such as Dash, Monero, or ZCash, which are far more difficult to trace.

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