Cryptocurrencies are bringing evolutionary changes in the payment system. It is a virtual or digital currency, which was created and introduced by Satoshi Nakamoto in early 2009. There are other types of cryptocurrencies that include Ethereum, Dash, Monero, Litecoin, Ripple, PPCoin, Namecoin, and Zcash among others, The most famous one being the Bitcoin.
Advantages of Cryptocurrency
Cryptocurrencies ensure that transfer of funds between business or people is safe and exceedingly easy. Private and public keys are utilized to ensure transactions secure, They don’t use any identity of the users. They will only use the wallet address of the sender and receiver, all other information is securely hashed and no one can retrieve it back.
With cryptocurrencies, you don’t need to wait days for your business to receive the money, compared to bank transfers that can take a few days. They are based on the blockchain technology, It offers very fast transaction. Bitcoin takes a maximum of 10 minutes for validating a transaction and it is about 10 seconds in Ethereum.
3- Low Cost
The cryptocurrency transactions fee is much less than present financial transaction charges. In bitcoin, anybody can do transactions without paying any transaction fees. The user also has the option to offer transaction fees for speeding up their transaction.
In cryptocurrencies, you’re able to create an infinite number of wallets without reference to the name, address or any other information.
5- No restriction
There is no restriction on transactions. The user can send the currency at any time from anywhere to everywhere. That means no time boundaries like bank holidays.
The cryptocurrencies have no central authority to control. It works as a decentralized system and its exchange rate is fixed dynamically according to the demand-supply factors. No government regulation or anything can stop or influence such independent cryptocurrencies.
7- Global with no limit
In cryptocurrencies, you can pay using your wallet to anyone, anywhere and any amount. The transaction cannot be controlled or prevented, so you can make transfers anywhere in the world wherever another user with a crypto wallet is located. Also, most of the cryptocurrencies have a fixed number of currencies in their exchequer. In the case of bitcoin, it is 21 million.
Disadvantages of Cryptocurrency
1- Lack of knowledge
The problem lies in that, most people are not aware of how to use cryptocurrency and hence open themselves to the hacker. Really, it is somewhat complex and therefore requires understanding before we make a mind to invest.
2- Limited Acceptance
Until now, cryptocurrencies are not acceptable in some countries and online websites, Very few countries have legalized the use of cryptocurrencies. It makes it impractical for everyday use. for this reason, its usage is very limited confining to only some specific domains.
3- High variability
Cryptocurrencies having highly variable nature. This is one of the main reasons mass adoption is taking longer than it should. Many corporations don’t want to deal with a form of money that is going to go through huge swings in variability.
4- Not Ability to Reverse the Payment
There is no way to revert the transaction, If you mistakenly pay someone by using cryptocurrency, then there is no way to get a refund of the amount paid.
5- No stability
Although there is a strict demand supply rule to define the exchange rate of cryptocurrencies, present market trends indicate an uncommon surge in the exchange rate of cryptocurrencies, especially that of Bitcoin. But it is believed soon that it will attain the normal pace.
6- Government can Ban
Although the government can’t control cryptocurrencies, they have the power to ban the transactions. The latest news indicates that the governments may soon get along with the way of cryptocurrencies for running their economic system in more transparent.