Cryptocurrencies are all the rage in today's times. Just like we had the dot com boom in the 2000s, the last decade has shaped up a crypto boom and led to the rise of many major cryptocurrencies.
Cryptocurrencies are attracting gen z investors and users more than the millenials, showing signs of being very popular in the coming decade. But, is it all hunky Dory? Are cryptos just a scam or do they have some real value behind it? Well today we are going to focus on the first and most popular cryptocurrency - bitcoin and follow its journey and learn our lessons.
This article is a short informative article about the advantages and disadvantages of cryprtocurrencies like Bitcoin. If you want us to cover it in detail, comment below and we shall cover it.
Table of Contents
Bitcoin was launched in 2009 by an anonymous person under the pseudonym Satoshi Nakamoto. It was introduced as the world's first cryptocurrency. Bitcoin became popular and was recognized as the first digital currency. It can be used for transferring, storing and exchanging money. However, the introduction of Bitcoin has faced a lot of challenges.
People are investing in bitcoins without even using it. Before investing one must know and research properly about cryptocurrencies.
Advantages of Cryptocurrency (Bitcoin)
Firstly, let us discuss the features and advantages of bitcoin. The main advantage is that you can use it as payment without a bank account. Also, you don’t have to pay a fee to the bank. All of these factors make it an excellent payment system. Bitcoins also have advantages in that they are not regulated by any government.
Also, with Bitcoin, you can buy anything without having a Visa or Mastercard. Cryptocurrency in a Controversial World Due to these features, it makes cryptocurrencies very popular. But this does not mean that they are without controversy. In fact, some governments do not accept it. For example, Iceland decided to ban it. While many other countries have banned it and claimed that it is a money laundering tool.
Disadvantages of Cryptocurrency (Bitcoin)
The term cryptocurrency can be found in the list of cashless economies. The consequence of Bitcoin in that aspect is that the people who do not accept it as currency can still use it, but no one else will accept it as payment. This is not a problem as some have said, and it is actually a strength.
Bitcoin not being considered a real currency has shown the world that it is not destined to be used by the common people as an equivalent of hard currency like the US Dollar or the Euro. The longer it is ignored, the stronger it will become. Currently, it is highly unstable and makes headlines when a certain level has been reached and then falls to a new low. The Case of Ripple Ripple is often used as the crypto currency of choice for most of the people who do not need the anonymity of Bitcoin.
Recent developments in cryptocurrencies
Bitcoin as a cryptocurrency has been doing remarkably well recently. However, the great popularity of Bitcoin has been marred by recent events, such as the collapse of the leading cryptocurrency exchange, blamed by some users on hackers.
The total worth of Bitcoins fell to $95 billion, down from the recent peak of $11.5 billion, as per Coinmarketcap. Recently a series of strange news also spread out, one of which is that a supposedly Russian Orthodox Church issued a statement that said it will issue its own cryptocurrency in the near future. The Church of All Saints, which is run by a former millionaire known as “Nikolai Murashchik”, declared that the coin is going to be used for charity purposes.
Looking back at all these points, we can see that cryptocurrencies have massive potential in the future, but the constant extreme volatility and no regulation might also turn it against the benefit of humans. It remains to be seen how this future is shaped for us - whether it leads to our prosperity or doom.