Advantages And Disadvantages Of Cryptocurrency

With all of the negative aspects of cryptocurrency, it seems like it is a good way to throw away and lose money. On the other hand, there are some reasons why investing in digital currency is a good idea. Knowing that Bitcoin and other cryptocurrencies are completely digital, consumers are able to transport it anywhere in the world. “In contrast to gold, Bitcoin is easily transportable and does not need to transit through international borders as currency” (Baron 8). Consumers will find it easier to manage and in making transactions overseas, they will not have to pay an exchange fee, thus making it more appealing. Completely digital currencies also help consumers on a security level in many ways. “[Individual] cryptocurrencies are digital …show more content…
However, there are some solutions that could be integrated in order to solve these problems. To solve the problem of intermediation, fully accredited institutions based on legislature need to be established. Once consumers see that a regulated financial intermediary is created, they will feel more confident in investing their time and money towards cryptocurrency, knowing that if something happened to funds, they would be protected. To reduce volatility, if more larger, well-known companies integrated Bitcoin as a method of payment, it would appeal to the general public and prompt them to invest and use cryptocurrencies. The day larger corporations, such as Amazon or Starbucks, begin accepting Bitcoin as a valid method of payment, the general public will be convinced that Bitcoin is “sellable” and holds value, considering that there large businesses are the pillars of commercial structure in today’s …show more content…
Drawbacks towards growth include instability, increased volatility, dependency on other currencies, legal infrastructure, and lack of trust. Advantages for growth include waived exchange fees, less chances of fraud, and unbounded exchange rates. While consumers may see an assortment of flaws with cryptocurrency, there are solutions that can help alleviate the detriments of digital currency, such as creating financial intermediaries, integrating virtual currencies as a method of payment in reputable companies, and using current technology to the consumer’s advantage. By placing these solutions into effect, cryptocurrency will develop into an ideal and modernized payment method and investment opportunity for consumers to take advantage