Blockchain has blessed us with many spectacular gifts, among them stars the fascinating cryptocurrenciesCryptocurrency Market has been looking to integrate into the world of investments for quite a whileHowever, despite its innumerable and unique features, it has struggled to be a common part of the real world.

It can be due to their volatile nature, as prices never stabilize, which makes users shy away from the new crypto marketExperts still believe that it would be some time before cryptocurrencies are accepted as a currency worldwide.

We can see the erratic progress of cryptocurrency; in 2018 it reached an all-time high record of $800 billionHowever, the situation dramatically changed and prices began to dropSo now cryptocurrencies are valued at $200 billion.

What is Cryptocurrency?

As the internet has become more affordable and ultra-fast, courtesy of providers like Windstream Internet Service, more people are utilizing the web to get their daily tasks doneSo it’s no wonder that a digital currency entered the fold to match the digital nature of commerce and trading.

Cryptocurrencies are known to function as Digital Gold since they are independent of any political clout and are secure investmentsThe cryptocurrency market is based on peer-review tradesCurrently, cryptocurrencies are being utilized in crowdfunding for startups through Initial Coin Offerings (ICO).

Key Characteristics of Cryptocurrencies

To understand why people love cryptocurrencies, we must study their transactional characteristics, which are singularly unique.

Anonymous: No one can determine the parties involved in the transaction despite the transparent process in the marketHowever, this feature has gained the attention of U.Sfederal agencies such as the Securities and Exchange Commission (SEC) and the FBI, who are worried about its ability to cater to money laundering activities.

 Secure: Its cryptograph only allows the owner of a key to unlock cash from devices and exchange cryptocurrencies.

Fast and Global: Cryptocurrency is a global system, surpassing all bordersIt only requires a few minutes for a transaction to be approved and mined, which makes them the fastest form of payment as opposed to the traditional accounting system.

Irreversible: Once a transaction is verified and added to the blockchain, it’s then irreversible and its record cannot be erased.

Cryptocurrency does away with the time-consuming and tedious red tapeNo one requires special permission or additional fee to use cryptocurrency, download, and use its application.

What is Initial Coin Offerings (ICO)

Initial Coin Offerings (ICO) have become quite popular in bypassing the controlled yet unpredictable method of raising investment capital from banks and investorsICO is an unregulated process by governmental entitiesICO Wallet is akin to crowdfunding, where a new business offers interested parties an Initial Public Offering (IPO) exchangeInterested investors buy into the offering and receive a new cryptocurrency token provided by the company.

Pros and Cons of Cryptocurrency Market

Many expect cryptocurrencies to become the future of currency and globally accepted medium of exchangeBefore that happens, a cryptocurrency needs to go through a continuous process of improvementIn an ideal world, cryptocurrencies have quite a few advantagesHowever, in the realistic scenario, we must contend with its disadvantages as well.

Advantages of Cryptocurrencies

High-Level Transparency

The concept of cryptocurrency is based on blockchain, and the said blockchain lets us view every transaction that has occurredAs we make any transaction, it is recorded in the blockchain and cannot be removedTransactions can be checked and verified anytimeWe cannot change or edit the records and showcases accurate statisticsNot even an organization or an influential individual can change itAnyone can work it and look it up anytimeThus, this makes cryptocurrency the most transparent currency system and the most secure as well.

Independent of Inflation

Regular currencies are riddled with inflation as governments print a lot of moneyFortunately, cryptocurrencies are free of any such hindrancesUpon the issuance of a new cryptocurrency, it is decided beforehand how much amount to generateOnce it is fixed, no one can reverse itFor example, it has been decided that only 21 million Bitcoins can be mined into existence, and no entity can increase or decrease its amountThus, you don’t have to worry about inflation with cryptocurrency.

Easy Transference

As we transact through traditional accounting mechanism and transfer funds across countries, we have to face tedious red tape, courtesy of unique laws and policies for each countryA lot of restrictions are placed on the type of transaction made, which takes a transaction longer than it shouldCryptocurrency bypasses such laws, policies, and red tape that hinder a speedy transfer of funds internationally.

More Secure

As blockchain is completely transparent, it makes for a more secure transaction environmentDespite anonymity of parties involved in the transaction, we can track down any thefts or fraudulent activities via blockchainMaking it more secure than real world money.

Disadvantages of Cryptocurrencies:

Lost is Irrevocable

If you lose, you lose irrevocably with a cryptocurrencyIf you lose your private key, there is no customer support or an organization in the crypto world that can get you another private keyTill now no one has been able to access their lost cryptocurrenciesBetter store your private key in a drive disconnected from the internet, so you  do not lose the passwordOnce you lose your private key, you cannot access your crypto funds.

Huge Market Fluctuations

A lot of people are more interested in cryptocurrency investments rather than actually utilizing them for transactionsIt’s easy to buy and sell a cryptocurrency, which fluctuates its price all the timeThis makes it as risky as the stock market world.

Transactions Cannot Be Traced

This factor has its pros and cons depending on the situation’s perspective.No one can track a transaction, courtesy of the decentralized nature of its networkMoreover, no central bank, organization or any other entity can regulate itThis opens avenues for criminals and drug dealers to perform shady transactions and hide illegal money, which is why it is considered a huge disadvantageOn the other hand, regular citizens can conveniently transact, buy, and sell it without being traced.

All in All…

Since its pros outweigh its cons, cryptocurrency is loved by mostAs with everything new, we would probably deal with cons over time and once we do, cryptocurrency would be our next generation currency.

Baldwin Jackson is a successful digital marketer with expertise in search engine optimization and content marketingThe perfect balance of his analytical ability and creative thinking is what sets him apart from other practitioners in the digital marketing realmHe has helped a lot of small and medium-sized businesses in crafting their digital marketing strategies that are not only cost-effective but delivers results as well.

Baldwin is also a proud father of two kids and a Sports enthusiastWhen he is not working, you will find him watching ESPN and NFL networkHe has been able to get an amazing package on his favorite channels from Buytvinternetphone.com.