Disadvantages of Cryptocurrencies

As cryptocurrency became widely known all over the world, many people get interested in it. Many well-known people show interest in crypto that they invest in it and got curious how this cryptocurrency will bring changes in the world.

Some well-known companies are accepting crypto and I am sure many of you, as crypto-enthusiast are aware of it. Some people who are a noob in terms of this crypto eagerly researching about it and even following well-known people on how to invest and make a profit out of it.

As cryptocurrency overtaking the world little by little, many people became interested in it. No doubt, cryptocurrency is now the new trend.

I, myself am getting curious about how crypto will affect society and the world.

I am not a crypto-enthusiast and I know I am far from that unlike any of you who are reading this article. I can't even label myself as a noob in crypto, but one thing is for sure, I am getting a step closer to being a noob.

I am earning well enough in this platform and noise cash. At first, I don't care about this cryptocurrency especially bitcoin cash, all I know is I am earning money. But now, the wind change, and I regret those times that I didn't save what I have earned for the past few months. (Please read my article Regret)

I get back my feet on the right track and started to think of saving what I am earning here and try to do the things that most of you are doing. My sudden interest in cryptocurrency specifically in BITCOIN CASH arose. As I am earning and saving bch, I get excited about how this BCH will grow if I don't spend it.

Will BCH be the answer to my prayers?

Well If you think I overreacting, you are free to say that. I have read many articles here about their journey in Bitcoin cash and I can't help to be excited about growing my bch earnings.

Every morning I have this "BCH SYNDROME" where every time I woke up, I check my wallet. Every time it rises I am at cloud nine and when it went down you can't paint my face. That's how BCH affects my system and my life.

(DISCLAIMER: THERE IS NO SUCH THING AS "BCH SYNDROME", I JUST NAME IT FOR MY EVERYDAY SCENARIO)

We all know that cryptocurrencies are volatile, they may rise or drop at any second. Bitcoin cash rise at its highest value this month which is $1600. Every BCH holders are very happy, and I am in the same boat.

As some crypto rises and some people are delighted, I can't help to think of its disadvantages. I know I am being a pessimist but that thought crosses my mind. So I ask, what may be the disadvantage of cryptocurrency?

So I did some research...

Disadvantage of cryptocurrency

• Can be used for the illegal transaction. The privacy and security of cryptocurrency transactions are high, it may be hard for the government to track down any user by their wallet address or keep tabs on their data. Cryptocurrency can be used as a mode of exchanging money in some illegal activities like buying illegal drugs.

• Data losses can cause financial losses. Developers wanted to create a virtually untraceable source code, strong hacking defense, and impenetrable authentication protocol. But if the user loses its private key to the wallet, there's no getting it back. This may result in users' financial loss.

• Decentralized but still can be operated by some organizations. Crypt currency is known for being decentralized but the flow and amount of money in some currencies in the market are still controlled by its creator and some organization.

• Some coins are not available in other fiat currencies. Some cryptocurrencies can only be traded in one or a few currencies. This forces the users to convert it to major currency and later exchange it to their desired currency. By doing this, extra transaction fees are added to the process.

• No refund or cancellation policy. If someone mistakenly sends money to the wrong address, the money cannot be retrieved by the sender. This can be used to cheat others out of their money.

Source: Advantages and Disadvantages of Cryptocurrency in 2020...

(Disclaimer: If you wish to know more about its advantages and disadvantages just click the source link.)

Those are the disadvantages I have read based on my research. I just read only one link because I think that would be enough to know and understand its disadvantages.

I know cryptocurrency will continue to grow. As it continues to grow, for example, sure it will face some obstacles and problems that need to get through.

As a beginner, all I hope and pray is for it grows even bigger and to be widely know and accepted by society.