BUSINESS & TECHNOLOGY

Cryptocurrencies and their future: Let’s not gamble with it

bitcoins (©Dmitry Demidko)

bitcoins (©Dmitry Demidko)

Recently, Tether, a controversial cryptocurrency that has experienced problems with the U.S. government, has outperformed Bitcoin in monthly transactions. Although its market share is many times smaller, people have quickly adopted its usability.

At the same time, China and Iceland are finalizing their cryptocurrencies that will be rolled out soon into the global market. Additionally, there is Libra, which is owned by Facebook. In some ways, Libra attempts to replace banks. This move has not been received well by many states because Libra may be a big blow to banks.

Why cryptocurrencies are coming up everywhere

On top of the common cryptocurrencies like Bitcoin, Litecoin and Ethereum, to mention a few, there are many other digital currencies that are about to hit the global markets. Experts claim that there are reasons to explain this. Let us have a look at the common ones below.

  • Stability: It is a no-brainer that cryptocurrencies are stable. Most major cryptocurrencies have performed well in the market, and past trends can show this. The pioneers of each cryptocurrency are hoping to achieve this success.
  • Well-designed system: When making transactions on the blockchain, the fairness and accuracy of the system are excellent. Each blockchain has set limits for the most that you can transact in a day and also per address to avoid fraud.
  • Safety and security: According to Nakitcoins experts, blockchains are the safest and most secure platforms to transact on. In fact, many other financial industries and concepts have already started adopting this technology to increase the safety and security of financial resources. For this reason, cryptocurrencies are becoming very popular.
  • Efficiency: Another big reason why cryptocurrencies are becoming popular is that they are efficient. From transacting across borders to speedy transactions, investors can now trust this system to be the best for driving the economy forward.

The dangers of moving to digital money

According to the trend in which new cryptocurrencies are quickly being developed, there is a major possibility that this is the future of money. But there is a significant outcry over taking this step too fast. Many central banks from different states have cited the danger this creates for the global banking industry. Innovators are gambling with cryptocurrency in an attempt to change the future of money.

At the moment, Tether Ltd has been involved in a big controversy with the US government after claiming that it is the stablecoin that is equal to the dollar. But there are no legal rights for the inventors to maintain this status, which may make investors think twice.

Libra is already surrounded by controversies. It is considered to be in the wrong hands, although Facebook has disputed this claim by experts. Thus, if they go ahead and put this digital money into circulation, there is a great likelihood that there will be problems both internally and in the global economy.

The takeaway

Global analysts have cautioned against gambling with cryptocurrency. China, Iceland, Facebook and even Tether Ltd are in the spotlight and should avoid rushing too quickly without considering both the positive and negative effects of digital money. Although we will eventually move towards the increased use of cryptocurrency, it is important to take baby steps to this destination.

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