Criticism of Cryptocurrency

There are many things to consider before deciding to enter the world of cryptocurrencies. 

In particular, you must take appropriate safety measures. Some people are scared at this point because everything seems too complicated and risky.

On the one hand, such fears are justified, but on the other hand, everyone can take care of their safety in a relatively simple way.

The prices of cryptocurrencies change often and sharply, which makes predicting the profitability of digging very difficult.

In 2017 the price has risen nearly 20 times to about $ 20,000 speculatively, as a result of the dominance of individual retail investors attracted by the shortage of bitcoin and the fact that it is outside the global financial system. 

The bitcoin market for 2017 had all the hallmarks of a classic financial bubble and investors buying in “fear of not missing” (FOMO).

In 2020 The situation is different, despite strained US-China relations, Brexit and the global CoViD pandemic and crisis, which suggest rather a caution. 

One reason is the influx of investors from large institutions such as pension schemes, university funds and investment trusts.

There is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.

Cryptocurrency theft and fraud have become much more lucrative for hackers over the past years.

One of the reasons for the big rise in hackers’ profits is the entry of many inexperienced people. 

They entered the cryptocurrency segment after the euphoria in 2017. However, most of them are not familiar with the technology and are not interested in it, but only in the rapid exchange of assets for big profits.

This makes them a very easy target for hackers, especially through fake exchanges and ICO procedures. Also, very often insiders in these projects are tempted and become accomplices of hackers for a share of the profits.

Moreover, no matter how much they are accepted by raising eyebrows by official authorities and the old conservative institutions, more and more of them are starting to comply with the new realities. 

Increasingly, governments, universities and various organizations are seeing the potential in technology. And it can bring change in different areas – the way payments are made, data management, education, commerce, information storage, even voting.

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