Crypto

Will cryptocurrency last? Here’s what we know

With all these disadvantages and concerns in mind, the future of cryptocurrency is still uncertain.

by
Chris Smith
August 25, 2020

cryptocurrency bitcoin price fluctuations

Image: Unsplash

If you frequently visit the online world, then chances are you know about cryptocurrency. This digital money cannot be seen or held physically but has become an increasingly popular investment type. However, many countries have differing views on the subject, with some places banning it altogether. So, will cryptocurrency last? Here’s what we know so far.

Increased Illegal activities

One of the main reasons why many governments aren’t accepting digital currency is a significant increase in illegal online activities. Since cryptocurrency can’t be tracked through banks or statements, many cybercriminals are starting to take advantage of it. Drugs can be bought easily on the dark web, and transactions can be made without being able to locate the source. This untraceable currency then makes it extremely difficult for government officials and law enforcement to track down the criminals.

Risky business

Like most investment types, there will always be some sort of risk involved. Cryptocurrencies, however, can be one of the most dangerous, as they are very unstable. Many kinds of the digital currency have already flopped, leaving many to lose their finances. Take bitcoin, for example, its rates fluctuate multiple times a day, causing confusion amongst buyers and sellers. This can then lead many to forget about investing altogether, to avoid financial havoc.

Cybersecurity concerns

While blockchain technology is very secure, there will always be a concern for cybersecurity breaches. Crypto scams are popping up all over the web, taking advantage of vulnerable individuals. Since it’s up to the owner to take care of their finances, they must be prepared to manage their funds. Instant bitcoin wallets can help you track your cryptocurrency, and provide you with a sense of security.

The future of banks

Another one of the main reasons why countries are not accepting digital currency is the impact it is having on banks around the world. At one point in 2016, some banks reported seeing a 40% decrease in customers. Since not all banks have the equipment to handle the rise of cryptocurrency, they could become obsolete altogether. However, there are different opinions on this, with some countries stating that instead of banning it, they should assist banks with managing it.

Not widely accepted

Lastly, one of the main reasons why cryptocurrency may not last is that it is still not widely accepted. While some places are starting to recognize it as legal tender, it is still in the minority. Bans are continued to be placed in countries all over the world. However, this hasn’t led to a decrease in bitcoin investments just yet.

With all these disadvantages and concerns in mind, the future of cryptocurrency is still uncertain. While the value of a particular digital currency like bitcoin is still rising, many others have already failed. This may result in only a few cryptocurrencies being widely accepted, with many others dying out over time. What do you think? Will cryptocurrency last?

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