Crypto currencies are the new frontier in digital finance. Possessing numerous benefits such as anonymity, fast transactions, and global reach, they have revolutionized the way we perceive economy and transactions. Yet, they’re not without their flaws. The same anonymity can be a breeding ground for illicit transactions, they are subjected to wild fluctuations, and not universally accepted.
How It Works
Crypto currencies, as the name suggests, leverage cryptography for securing transactions. They operate on a technology called blockchain which is a decentralized technology spread across several computers managing and recording transactions. This technology is not controlled by centralized banking systems, and is hence devoid of any geopolitical influence.
Pros
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Anonymity: Cryptocurrency transactions can be made without any personal details attached, maintaining the privacy of the users.
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Fast and global: Transactions operate on a global scale and execute within minutes irrespective of the geographical location.
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Secure: Leveraging blockchain technology, they are secure against fraud and theft.
Cons
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Used for illegal transactions: The anonymity pro can become a con here, as it can be used for illicit activities.
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Not universally accepted: Not all vendors and institutions accept cryptocurrencies.
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Volatility: Cryptocurrencies are known for their wild fluctuations, introducing risk in investments. Read More
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