Table of Contents
Advantages
- Fund transfer between two parties will be easy without the need for third parties like credit/debit cards or banks.
- This is a cheaper option than other online transactions. Payments are secure and offer an unprecedented level of anonymity.
- Modern cryptocurrency systems come with a user “wallet” that can only be accessed by a public key (KEY) and a pirated key. The private key is known only to the owner of the wallet. Fund transfer is completed with minimal processing fees
Disadvantages
- The almost hidden nature of cryptocurrency transactions makes them easy to be the focus of illegal activities such as money laundering, tax evasion, and possibly even terror financing.
- Payments are not irreversible Cryptocurrencies are not accepted everywhere and have limited value elsewhere. Like bitcoins are not contained in any physical object.
- However, some research has identified that the cost of producing bitcoin, which requires a high amount of energy, is directly related to its market value.
