Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Today cryptocurrency Has become a global phenomenon known to most of the people.
There were many airports made in creating the digital currency like digicash,Flooz etc, But they all prove to be a failure. There were many different reason for their failure such as fraud, financial problems and even the friction between the employees of the company. Then, in early 2009, an anonymous programmer or a group of programmers under an alias Satoshi Nakamoto introduced Bitcoin. Satoshi described it as a ‘peer-to-peer electronic cash system.’ It is completely decentralized, meaning there are no servers involved and no central controlling authority. There are certain tax to be known about cryptocurrency. Unlike the US dollars in your bank account or any other currencies in your bank account. The digital cash do not have any control over them like government or any controlled body. Digital cash do not have any particular fundamental tie. Also, there are more than 1300 cryptocurrency in the world. But Bitcoin is the king. It was the first tradable cryptocurrency that was brought to market, and it currently makes up 54% of the aggregate $589 billion market cap of all cryptocurrencies. Cryptocurrencies are banned in a number of countries. Sure, cryptocurrencies might be the hottest thing since sliced bread, but they're not accepted everywhere. Because of their unregulated and decentralized nature, some countries have chosen to outright ban the use of, and/or trading of, digital currencies. The researchers found that 2.3 millionpeople use bitcoin to make payments while 4.8 million users will hold bitcointo facilitate speculative trade of the cryptocurrency to turn a profit. Those who use bitcoin for payments come up to 11 percent of the total bitcoin users, while speculators make up 23 percent.
Now we Will discuss about the advantages and disadvantages of cryptocurrency.
Drawback #1: Scalability
Probably the biggest concerns with cryptocurrencies are the problems with scaling that are posed. While the number of digital coins and adoption is increasing rapidly, it is still dwarfed by the number of transactions that payment giant, VISA, processes each day. Additionally, the speed of a transaction is another important metric that cryptocurrencies cannot compete with on the same level as players like VISA and Mastercard until the infrastructure delivering these technologies is massively scaled. Such an evolution is complex and difficult to do seamlessly.
Drawback #2: Cybersecurity issues
As a digital technology, cryptocurrencies will be subject to cybersecurity breaches, and may fall into the hands of hackers. We have already seen evidence of this, with multiple ICOs getting breached and costing investors hundreds of millions of dollars this summer alone (one of these attacks by itself resulted in the loss of $473 million). Mitigating this will require continuous upkeep of security infrastructure, but we are already seeing many players dealing with this directly.
Pro #1 Unparalleled Transparency
This is one of the major reasons why digital currency offers much more potential for societal change and accountability. While the use of cryptocurrency is anonymous, the transactions themselves are all stored on an open ledger. This means that the data is available to view by anyone at any time, and that’s a major boon for those wishing for a more transparent banking system. It is because of this transparency that bitcoin is considered one of the hottest topics in world currency.
Pro #2 Instant and 24-hour accessibility
It is possible to spend or buy wherever you are, and you don’t even need a computer to use it. Everything can be managed on your mobile device, meaning that even for those with little in the way of technology, they are still able to access their finances and make decisions in real time. This accessibility is a key feature for the adoption of bitcoin, and is being used across the world to provide opportunities for those who would previously have struggled to become online consumers.