There are always two sides to the coins – and the same rule applies to cryptocurrencies. While the whole world is gushing over how fantastic the returns of cryptocurrencies are, there’s a downside to it too. Not many really talk about it, as the world of cryptocurrencies is super glitzy. Here we have listed a few cons of cryptocurrencies which you should keep in mind before taking a step ahead and investing in them:
No government control:
While the crypto world considers being a significant benefit, no government control means no one really knows what’s happening in the crypto world. This leaves people to do whatever they wish with no ruling authority to question their actions. This is a major drawback as the privacy of the transactions, which is super guarded in cryptocurrency transactions, can be misused for clandestine activities too.
Not acceptable everywhere:
You may wish to use cryptocurrency to carry out multiple transactions whenever you step out to shop – but it isn’t possible as many vendors don’t accept payments in cryptocurrencies. This means that the accessibility of cryptocurrencies is not yet widespread and is limited- at least as of now.
You cannot see, feel or touch the cryptocurrency – it is entirely virtual and software-based, which makes it vulnerable to the bugs that are a common feature in software. Although such an incident hasn’t really occurred in the world of cryptocurrencies, the possibility of such a thing happening cannot be denied entirely. And the fact that cryptocurrencies aren’t covered under any law makes the investors even more vulnerable in case of any untoward happening.
Lose your key, lose your coins:
There is no way at all to recover the cryptocurrency coins you have purchased if you happen to lose them in any way. Also, most o the cryptocurrencies don’t really offer any copies of transactions made and investments held (it’s all virtual) makes it difficult for you to prove that you actually owned some cryptocurrencies which are now gone. If you lose the private key to your crypto wallet, it’s money gone – forever.
Although cryptocurrencies have fetched many people tremendous returns, it cannot be denied that the currency values waver like no one’s business. Take an example – in the year 2014, the value of Bitcoin ranged from between $30 to $1000! Imagine the gravity of fluctuation. This also means that one who is well versed with investing in cryptocurrencies is better off understanding the tricks of this trade.