Cryptocurrency was first started in 2009, by an anonymous programmer that is only known as Satoshi Nakomoto. The first cryptocurrency invented is Bitcoin (BTC) and that is why the name Bitcoin is so famous until it is used to refer to any other cryptocurrencies by people in general.
While many people were apprehensive about digital assets competing with traditional assets at first, cryptocurrencies have grown in popularity. The movement began with a few well-known names in the cryptocurrency industry, but new currencies are being created every year. The rapid introduction and popularity of new currencies, on the other hand, has far-reaching repercussions, beginning with banks and ending with customers like yourself.
Before you start using cryptocurrency, you should at least read the Bitcoin, Ethereum, Litecoin and Doge mama review to know the things that people have been experiencing with the cryptocurrency. Here are the advantages and disadvantages of cryptocurrency that you can take into consideration before making any investment.
Advantages
- Limited supply
The main reason for cryptocurrency having a limited supply is because the mining process can be hard. The maximum number of coins that may be generated or “mined” is 21 million. At the moment, around 18.5 million bitcoins have been mined, leaving fewer than three million to be created. Not all cryptocurrencies are hard to mine but when one is not as easy as the others, it increases the value and give a great benefit to the user.
- Growing acceptance and usage
Since there are a lot of cryptocurrencies that have been introduced, people started to accept the truth and advantages of using cryptocurrency. Nowadays, a growing number of investment firms are interested in investing in cryptocurrencies. When people started to believe and use cryptocurrency, the value also increased as it is now something that people invest their money on.
- Fast and inexpensive
Moving to a different region of the world through your bank may be quite costly. Regardless of the sum or the location, with cryptocurrency, any quantity of money may be sent in a matter of minutes. Because blockchain (that is used in the establishment of cryptocurrencies) promises to eliminate gatekeepers such as banks and internet marketplaces, there are no payment processing costs.
Disadvantages
- Exposed to cybersecurity issues
We all know that cybersecurity issues or cyber crimes are common these days. Cryptocurrencies are virtual money that works fully on the internet. Cryptocurrencies, being a digital technology, will be vulnerable to cybersecurity threats and may end up in the hands of cybercriminals.
- Scalability
While the number of digital currencies and usage is growing quickly, it is still related to the number of transactions processed by payment giant, VISA, each day. The key measure is transaction speed, which cryptocurrencies cannot compete with on the same level as companies like VISA and Mastercard unless the infrastructure supplying these technologies is significantly expanded.
- Endless potential supply
I agree that some cryptocurrencies such as Bitcoin and Ethereum have limited supplies which make their value increase but there is also high potential for endless supply for other types of cryptocurrencies. Nowadays, nothing can stop an ever-increasing number of new cryptocurrencies from being established.