Cryptocurrency has become a significant invention to the human history and opened a great opportunity to the future. Although cryptocurrency is such an excellent creation, nothing is perfect and it still has some negative aspects which need to be worked out. Let’s take some time to learn cryptocurrency’s potential cons as below examples.
Not all the banks or governments consider cryptocurrency is a legal way of funding transactions. Therefore, it creates a certain limitation to use cryptocurrency comparing to other methods of payment because not every place accepts this form of money.
Unfortunately, some criminals even have taken its advantage of anonymity to partake in the illicit activities like money laundering, terrorist funding, drug selling, etc. Therefore, cryptocurrency could possibly lead to any kind of usage for illegal purposes.
Cryptocurrencies are trading 24/7 and the values change frequently and wildly than other traditional flat currencies. Which means that it’s more like a gambling that you may face a big risk to lose a lot of money if the price suddenly drops down. The lack of influence of a central bank could lead to an instability of market place. Indeed, here is a very good example in December 2017, Bitcoin’s value reached to the peak of nearly $20,000 but rapidly dropped to $7,000 during 4 months of time and then even crashed down to $3,500 by November 2018. As a result, many investors had a massive wealth loss because of cryptocurrency’s extreme volatility.
Not everybody is capable to understand the concept of cryptocurrency and even has the difficulty to use it. Therefore, it can become quite challenging for some people to accept this method and feel uneasy to handle it.
There is no way to recover your lost cryptos if something happens to the system or wallet. In fact, cryptocurrency doesn’t provide the same protection as credit card or bank account in case of fraud or hacking.