Cryptocurrency has been the talk of the financial town for quite some time now. We are seeing even business tycoons speak out on the matter of Cryptocurrency and even investing in some.
This is certainly giving us the hope that Cryptocurrency is, after all, a boon for us. But, why is it still getting backlash, and not just from the layman public but also from experts who have been in the financial world for years?
Why is it happening?
Is Cryptocurrency a real thing, or is it just a conspiracy which we are yet to discover? But, before we get into that, let us understand a little more about the concept and where it originates from.
What Is Cryptocurrency?
Cryptocurrency is a digital currency which only exists in the digital world. Unlike fiat currency (the paper currency which we widely use), Cryptocurrency does not have any physical form.
They are secured through a Cryptograph. Almost all Cryptocurrency platforms use a technology called Blockchain. This is where the whole system is decentralized, and several computers are connected. They all have the same set of information, and the transactional history of each Cryptocurrency is saved in the form of Blocks.
With each new transaction, there is one new Block added. No third party can penetrate the Blockchain and add or erase any data. This means anything saved in the Blockchain will remain there forever.
If you wish to start trading in Cryptocurrency, then begin with bitcoin evolution.
What Is Bitcoin?
Bitcoin is the Cryptocurrency which commenced the whole idea of digital currency. Now Bitcoin has received quite the following from Crypto mongers, and now it is known as digital gold.
However, things were not like this when it first commenced. Bitcoin was started by this mysterious individual called Satoshi Nakamoto, and his or her identity is still unknown to the world. It could be just one individual or a group.
When Bitcoin first commenced, everyone thought it to be a joke. There was no one who took it seriously. There was this gamer who won two Bitcoins on winning a match, and he ordered two pepperoni pizzas with them. Just imagining his regret now!
No doubt Bitcoin gave meaning to the term volatile. But, if something which has started as a joke is now being talked about by business tycoons, we call that progress.
Then why still the backlash? Well, let’s find out!
1. The Credibility
There are finance experts who still believe that Cryptocurrency is a hoax where people are precariously spending all their dollars, and one day it can just seize to exist. There could be a few reasons for this.
– First, no one knows who the founder is, and there has been no official testimonial of this digital currency being authentic.
– There are governments and banks who still despise the idea of making Cryptocurrency mainstream, and thus they are yet to accept Cryptocurrency.
– It operates through a decentralized body, which means there is no regulatory body which is authenticating everything.
2. The Scams
Cryptocurrency scams are increasing leaps and bounds with each passing day. When it commenced, the Blockchain technology gave us immense hope, understanding that nothing can penetrate this close-knitted technology.
However, when it comes to Cryptocurrency scams, there are some cyber criminals who are progressing toward stealing Cryptocurrency. Yes, a Blockchain is very secure, but they are able to steal Cryptocurrency with the help of glamorized advertisements and email phishing.
3. The Crimes
Keeping the cybercrime aspect aside, the crime rates are also increasing with the use of Cryptocurrency. Since there is no authoritative body authenticating the transactions, many criminal syndicates use this to uphold their illegal trafficking business.
Drugs and human trafficking transactions are like the new norms in the Cryptocurrency world. But, we all must agree that anything new will have its pros and cons.
4. No Physical Value
The fact still remains that Cryptocurrency only exists in the virtual world, and there is no physical value. Yes, there are paper wallets with QR codes which one can scan, but that being said, it still doesn’t have the solid value like a fiat currency.
Plus, there is still confusion about whether it is currency or commodity since the prices are still measured through fiat, and they are extremely volatile.
What Are Your Thoughts!
Whether you are a newbie in the market or you have been in the Cryptocurrency business for quite some time. We are sure that there must be something which has planted a seed of doubt about Cryptocurrency.
Let us know, and let’s see if we can quench that curiosity.