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cryptocurrency future

Future of Cryptocurrency & its Advantages and Disadvantages

Cryptocurrencies are digital currencies created using cryptography on blockchain technology that are decentralized and not controlled by any central authority or any government. Some examples of cryptocurrencies are Bitcoin, ETH, TETHER, BNB and DOGE.

Cryptocurrency craze is increasing every day globally, the returns investors get from cryptocurrencies are crazy, but it also comes with high risk because investors are worried to a certain extent, but many big investors Bullish on cryptocurrencies because they believe the future of cryptocurrencies is positive for cryptocurrencies and blockchain.

So let’s discuss some perspectives on cryptocurrencies that will give a clear picture of the future of cryptocurrencies.

Cryptocurrency future acceptance

The first question that comes to an investor’s mind when investing in a cryptocurrency is whether it is legal, as many countries have no fixed side to cryptocurrencies, which means that countries have not yet declared trading cryptocurrencies legal but have not given them illegal status.

Such as India tax the profits made by cryptocurrencies, they do not clearly state whether it is legal or illegal, but many countries such as US, Canada, Germany, UK, Japan, Australia etc have adopted bitcoin as legal tender, these countries Many companies have started accepting Bitcoin as a payment method, which bodes well for the future of cryptocurrencies.

Supply of Cryptocurrency

The supply of physical currency is infinite, the government can print any number of paper money, but in the case of cryptocurrencies, the supply is limited.

Such as Bitcoin, its total supply After this mark 21 million bitcoins can be mined (created), which makes them rare because they have value, and economic rules say that limited supply will create more demand in the market, another aspect of cryptocurrencies A positive sign, Bitcoin currently has a circulating supply of $18.9 million.

Considering the supply of bitcoin, many big investors have already invested a lot of money in bitcoin.

Number of Investors

The number of investors investing in cryptocurrencies is increasing every year as good interest rates are attracting them. Not only retail investors, but institutional investors are also entering the crypto industry, with more than 300 million people investing in cryptocurrencies and this number is increasing every day, which is a positive sign, the most are none.

These crypto investors are from India with over 100 million users, followed by the US with over 20 million users. Numerous celebrities and billionaires are heavily invested in Bitcoin, such as Barry Silbert, who holds $25.3 billion worth of Bitcoin as of April 23, 2022, and Michael Silbert, who holds $84 million worth of Bitcoin as of April 23, 2022. Thaler, Elon Musk, who holds $1.5 billion worth of bitcoin, these values ​​must have changed due to current market prices.

Advantages of Cryptocurrency

Protection against inflation: Inflation makes the value of a currency decrease over time, but the supply of each cryptocurrency is fixed at launch, e.g. Bitcoin has a total supply of 21 million, which creates a demand and help prevent inflation in the long run.

Decentralized system: One of the main benefits of cryptocurrencies is a decentralized system, which means it is controlled and governed by many teams or groups rather than a single authority, which brings transparency to the system.

Smooth transactions: Another benefit of cryptocurrencies is that it is a peer-to-peer system, as it can be sent to anyone in the world, eliminating third parties like visas, MasterCard, etc., which makes them cost-effective as users don’t need to pay anything extra Fees Fees when making a transaction.

Disadvantages of cryptocurrencies

Illicit Transactions: The main reason why governments around the world do not adopt cryptocurrencies is illicit transactions, because the privacy and security of cryptocurrencies are so high that it is difficult for governments to keep a close eye on illegal transactions that are taking place. Users cannot be found by their addresses, and cryptocurrencies have been used as payment methods for illegal activities such as buying drugs, weapons, etc. on the dark web.

Data Loss: The wallets where users store their cryptocurrencies are not protected by any password, but they are protected by a private key that contains a bunch of words, if the user loses their private key, the wallet cannot be accessed, it will be lost forever There are many cases, People lose a lot of money by losing their private keys.

No refunds: Another disadvantage of cryptocurrencies is that users have to be very careful when sending cryptocurrency to someone, if someone sends cryptocurrency to any wrong address, the user will not be able to cancel the transaction or make any complaints to get a refund.

Conclusion

There are two kinds of people, those who believe in the positive future of cryptocurrencies and those who oppose it. More recently, Bitcoin’s success since 2009 has led to the emergence of many other cryptocurrencies such as Eth, Lite, and Ripple, which are backed by million-dollar companies, suggesting that cryptocurrencies have a bright future.

But it’s volatile, so should we invest in cryptocurrencies? The answer is that you have to manage the risk according to the market, if you don’t want to take the risk, you should not invest in crypto and look for some safe investment options. ​

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