Cryptocurrency is digital currency. It can be exchanged online for
various goods and services. This virtual currency is secured by
cryptography, which is where cryptocurrency gets its name. They work
through blockchain, a highly secure database that keeps record of
transactions in the form of a chain.
There are over 10,000
publicly traded cryptocurrencies, and as of August 2021, the total value
of those cryptocurrencies are more than $1.8 trillion!
"Should
I start using and trading crypto?" you may be asking. Well, let's look
at some of the positives and negatives.
Pros
Cryptocurrency trades typically operate on a peer-to-peer
networking structure. Traditional business deals usually involve
paperwork, agents, representatives, commissions, and just overall
confusion. Crypto transactions eliminate that by "cutting out the
middle men".
Unlike traditional bank/credit transactions, arrangements using
cryptocurrency often involve little to no transaction fees. This
is beneficial for heavy shoppers, as fees can definitely stack up.
International trade is made less complicated through the use of
cryptocurrencies. Not only is crypto not currently recognized as
legal tender, but the peer-to-peer structure of the trade makes
overseas transfers and transactions much less overwhelming for the
users.
Cons
The mining done for cryptocurrency consumes a large amount of
energy, which heavily impacts the environment. Bitcoin mining
alone produces over 39 megatons of CO2 annually, and
was estimated to raise global temperatures by 2°C (around
35°F) in the next 20 years.
Because cryptocurrency is not considered legal tender, the number
of businesses (both online and real-life) at which they're
accepted is still very limited, despite its growing acceptance
within the past few years.
Cryptocurrencies are assets of private sectors (some more private
than others) with no official regulation or governmental oversight
on these assets. Some may use this to their advantage by
exploiting or scamming unsuspecting users.
Use this information (and the plethora of information throughout this
website) to make the decision. Enjoy!
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