“Cryptocurrency – A Blessing or Burden?”
What is cryptocurrency?
Advantages:
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Protection from inflation: Inflation causes a decline in many currencies. It has happened pretty much in past, take the example of zimbabwe or Venezuela. This is not the case with Cryptocurrency. They are released with a fixed amount but as the demand increased, the value of crypto also increases, thus in a long run prevails inflation.
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Crowdfunding: Many start-ups need investments to operate, they could depend on a few investors that are investing a hefty sum or with many investors with little sum. Crowdfunding is when a large number of people invest little in some app or start-up. It is an increasingly popular way for entrepreneurs to raise money for their concepts and/or products.
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Could make foreign money transfers and transactions safer: Cryptos can make our in-home as well as foreign transactions safe. When you go to other countries, carrying cash and money card is pretty dangerous.
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Cost-effective: With the help of cryptocurrency, the transaction fee paid by the user could be reduced to negligible to zero. Thus you can send money overseas in form of crypto without paying hefty charges. It eliminates third parties such as Paypal which charges a large sum to verify the transactions.
Disadvantages:
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Data loss can cause Finacial loss: The platforms and wallets of these crypto platforms are made such that they’re super secure against any hacker attacks. This gives it an advantage over the cash or bank vault. But if you lose your private key of wallet, then you cant access the wallet, hence no matter how many coins you have are all gone or we could say become dormant.
