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Cryptocurrencies: advantages and disadvantages – MuyPymes

Cryptocurrencies continue to boom. It is something indisputable. More so when the volume of people who make use of digital currencies is increasing. In just two years, these currencies have experienced a growth of 11 percentage points, being India, South Korea, USA and Germany the countries in which interest has grown the most, according to Statista. But, how could it be otherwise, cryptocurrencies have their positive and negative sides.

Among the advantages of cryptocurrencies, it stands out mainly its decentralization. In other words, there is no government institution that mediates in their control. In addition, cryptocurrencies have another series of benefits such as:

  • They can be sent quickly to anyone connected to the internet, regardless of where they are.
  • They offer greater anonymity when making transactions.
  • It favors the advancement of technology such as the blockchain, which can be used in more areas.
  • Thanks to blockchain technology, they cannot be duplicated or falsified.
  • They are a good product for those investors who like risk, since the stock market is usually more stable.
  • Cryptocurrencies like Bitcoin can serve as a shelter value in countries with high inflation. For example, in cases like Russia and Ukraine, where right now, due to the current war, the local currency is rapidly devaluing.
  • It is becoming easier to make purchases with these digital currencies both online and in stores thanks to the increasing commercialization of cryptocurrency cards.

On the other hand, cryptocurrencies present drawbacks What:

  • Great ignorance of people about cryptocurrencies, their operation and other issues related to them.
  • Inexperienced people can easily lose money by investing in them.
  • Greater risk of scams and being decentralized, you cannot claim the bank, you can only report it to the police. There is still no clear regulation around cryptocurrencies.
  • High volatility by which they are characterized, increasing or decreasing their value considerably in a short time.
  • The process of trading with cryptocurrencies is complex compared to banking.

We can’t forget either of commissions when sending cryptocurrencies. And this is already linked to each type. In some it is free; while in others, on the contrary, it is more expensive.

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