FOR CRYPTOCURRENCIES

AGAINST CRYPTOCURRENCIES

1. A NEW ALTERNATIVE

Critics of cryptocurrencies have to acknowledge that our current system is not so rosy. Just look at what happened in 2008: we placed our money in banks and they failed us. What’s to prevent that from happening again? Do you have a say in the European Central Bank’s (ECB) or the US Federal Reserve’s monetary policy? We are already living with a highly volatile system, which could be pushed to the brink should another financial crisis occur. Cryptocurrency offers a possible alternative to our failing financial system. Is it not wiser to start placing trust in algorithms rather than fallible individuals?

1. A NEW DANGER

You thought the Weimar Republic was bad? A cryptocurrency like Bitcoin fluctuates like crazy. Such extreme volatility does not allow for regular use. If you bought something with a single Bitcoin back in December 2017, it was worth 17,000 EUR. At the time of publication, it was worth a little over 5,200 EUR. By the time you read this, that number may have wildly changed. It’s impossible to use a currency if you can’t reliably determine its long-term value. And, of course, speculators are doing everything in their power to make sure that the value changes as much as possible.

2. ANONYMITY

IYour name is not connected to your account. You are free to use whatever pseudonym you want to manage your cryptocurrency wallet. What’s more, the identities of coin owners are always encrypted. This is a level of privacy that no other currency can promise.

As the currency is completely decentralized – a peer-to-peer system, you are its master. You own it. Neither governments nor banks have control over it.

Critics may point out that it is not completely private as criminals have been tracked using Bitcoin. That’s true but Bitcoin is not the only cryptocurrency on the market. You could opt for Monero, DASH, or Verge instead, which place an even stronger emphasis on privacy.

2. INSECURITY

How can you trust that which has no rules? As supporters of cryptocurrency proudly flaunt, it is completely unregulated and decentralized. As of yet, there is no central power dictating the rules of cryptocurrency. When we interviewed ECB President Mario Draghi on the subject, he warned: while the euro is backed by the ECB, no institution backs bitcoin. That is not reassuring.

Also, if you buy something with Bitcoin and get ripped off, don’t expect anyone to help you. If someone hacks into your wallet, no one is coming to your aid. Think it’s unlikely? Think again. This has happened before. If it happens to you, you’re on your own. Such is the risk of an unregulated system.

3. CONVENIENCE

Cryptocurrencies are perfect for small businesses. Just set up an address and it allows you to receive money from across the world, without having to deal with the hassle of bureaucracy, government regulations or bank fees.

While cryptocurrencies are still in their infancy, many services already accept it as a method of payment. In 2013, consumers spent an average of $9.8 million a month on merchant services. Last year, that number ballooned to $190.2 million. Nowadays, apps like Yelp even tell you about services that use it. As more people learn about cryptocurrencies, its adoption is bound to grow.

3. INCONVENIENCE

If you ever get irritated waiting in a line at a grocery store, then you’ll want to stay clear of cryptocurrencies. A 10 minute wait for a simple transaction is not exactly ideal, yet that’s exactly what’s in store if you sign up for a cryptocurrency like Bitcoin. All payments take a minimum of 10 minutes to be verified. And that’s assuming it works on the first try.

Of course, before you even pass that hurdle, you have to be sure that the company even accepts cryptocurrency in the first place. As it’s still relatively new, this is not something that can be assumed. What’s the point of having a currency if you can’t use it?

IMAGE CREDITS: (CC) Flickr – Crypto 360