Cryptocurrency is a type of digital currency that you can use for the payment of goods and services. It works on the technology of Blockchain, which is a digital ledger of all the transactions. Is cryptocurrency good or bad? Many investors have been trying to answer this question for a long time. There is no right or wrong answer for this since it is a grey area. Here are some arguments in favour of cryptocurrency and some against it, which can help you decide what works for you and what does not.
Why is cryptocurrency good?
- Cryptocurrency is completely decentralised, which means any autocratic leader or government-backed organisation does not control it.
- Since it is a digital currency that does not recognize sovereign borders, there is no requirement for taxation conversions.
- Cryptocurrency is free from any economic cycles such as recessions or depression.
- It can become the world currency that is free from any significant challenges.
Why is cryptocurrency bad?
It is a high-risk and highly volatile digital currency that is prone to scams. They are risky as compared to traditional stock or bond markets. Cryptocurrencies are traded on crypto exchanges, which have been vulnerable to hacks as well as criminal activities. Besides, many investors have also had their digital currencies stolen from wallets. Wallets are the places where your crypto coins are stored in a digital format. Many people shy away from investing in cryptocurrencies due to the threat of such thefts and cyberattacks.
Cryptocurrency trading should be opted for only by taking professional advice, especially if you are a risk-averse investor.
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