the saucy debate on the advantages and disadvantages of cryptocurrency has risen with the grand entry of crypto in India. cryptocurrency is that hot actress which has just made a debut and people are just going gaga over it. some say that these digital tokens come with a lot of red flags; however, some disagree because the number of green flags tends to be a lil bit more. you ask on which side we are? well, we’re teens and we are a bit biased about technology and modernity pretty much always, aren’t we? And not to forget the juicy returns that crypto promises. but today, we are goin’ to take a dive lil bit deeper and learn about cryptocurrency advantages and disadvantages.
list of advantages of cryptocurrency
list of disadvantages of cryptocurrency
cause we firmly believe in seedhi baat no bakwas, let’s get going.
advantages of cryptocurrency in India
why of course we are gonna talk about what makes crypto special first. (call us biased, cause we are :p) we’re in that time of life where everything comes with pros and cons. but not to forget that the prime motive of crypto was to make life easy. so how do you feel about taking a closer look at the 5 advantages of crypto? Lezzz goooo!
1. potential to give juicy returns
it is no doubt that cryptocurrency gives immense returns when you have invested in the right project. as a teen, it’s really important that you read a bit about the token that you wanna invest in. currently, that crypto has become the talk of the town, people are legit doubling and tripling their money effortlessly.
many of them say that investing in crypto is like investing in a gamble. well, we disagree. now it’s true that the risk might be the same but every token has a usage which makes it important. and we already know, higher the potential of the project, the higher is the price gonna get. advantages and disadvantages of cryptocurrency aside, the bull market is what makes crypto as special as it is.
2. pay for anything, anywhere
whether you are hiring a web designer for your website or a ghostwriter to complete your novel. payment becomes direct, quick and hassle-free when you are making/ accepting international payments. the process of remittance (sending money globally) becomes very easy if it is being made in cryptocurrency. usually, after making a global transfer, the receiver has to wait at least 4 to 5 days for the money to reflect in their accounts. however, in the case of crypto, say if the payment is made via bitcoin, the transfer would only take a couple of seconds.
3. aims to completely cut out the middle parties
every time you transfer an account, there is some fee that you are paying to the intermediary party such as banks, marketplaces etc. however when you are making the transactions via crypto, you do not have to pay any payment processing fee.
a small amount of token (literally negligible) may be used but that is charged by the wallet that you are using. there are ways in which you can make the payment without having to pay any processing fee. the benefit of completely eradicating the middle party is not just one. we mean, it’s always faster and better to talk to your crush directly than take the help of a friend, right?
imagine how fun would it be for us teens to use crypto as easily as UPI, cause well, duh! it is that simple. and we sure as hell are waiting for these days.
4. safe and secure way of paying
cryptocurrency is just as secure and password protected as teens these days keep their mobile phones xD. no one would be able to open it unless you provide your private key to it. crypto comes with a wallet or an account address that can only be accessed by you. no one else, in any way would be able to fraud and loot your tokens that easily.
institutions widely are using cryptocurrency to make payments for their orders. fund transfers are very safe and they can be done at minimal charges. advantages and disadvantages of cryptocurrency are to be debated upon while we are talking about the safety cause while some believe it provides more safety, others believe that crypto takes away the safety of a country or individual due to the anonymous payment system.
5. the rising acceptance and usage
cryptocurrency is used at least 5 times more today than it was used 2 years back. as crypto is taking steps forward, people are realising that this is the future. recently crypto has been started getting accepted at yo’ favourite food spots like- Burger king, Starbucks etc. in fact, you would be shocked to hear that there’s even an atm that allows you to withdraw cash via bitcoin.
cryptocurrency is marked to be more powerful than fiat money. To put it in simple terms- money sitting in your bank account would only depreciate (decrease) with every passing year. However, if you have that same amount of money, it is seen to fight inflation and increase with the value with every passing day. let’s say, the value of 10 rs was more than it is today. you could have bought things in 10 rs back then which are selling at 20-30 rs today. but if you keep that amount in any crypto, say BTC, the value would increase and now that 10 rs has turned to 20 or 30 rs. (so that means you can buy triple the number of whatever you wanted to buy a year back)
Disadvantages of cryptocurrency
now that we have taken a look at the brighter side of the crypto world, it’s almost time we take a round at the dark side too. although crypto comes with lots and lots of advantages, there are some downsides that come along with it. so without any further ado, let’s take a look at the disadvantages of cryptocurrency in India.
1. high chances of volatility & huge loss
one common factor that can be counted in both advantages and disadvantages of cryptocurrency is this. although there are hugggeee chances of high returns, you cannot neglect the high risk. cryptocurrency is decentralised, meaning we are the ones who are responsible for pumping and dumping it.
so one fine day when you wake up and find your 500 INR to be lying at 300 or even 250 INR, do not be surprised. It’s just crypto playing its games. yet, the key here is to wait. do not panic and sell your entire portfolio at a loss just because you are predicting the price to run even lower. In the bigger picture, crypto will ALWAYS prove to be beneficial. so folks, you just gotta hold on to what you have. keep a close watch on the timing you are buying or selling your crypto.
2. high chances of getting misused
the fact that we have the power to control crypto makes it unbacked and unregulated which means, the chances of it being used for the crime purpose are extremely high. Many illegal activities have been done in the past via bitcoin because of the fact that you do not need any identity to transfer the money via crypto. crypto can also prove to be vulnerable to cyber attacks, meaning one might end up losing all the tokens if the hacker is strong enough to get access to your private key.
3. limited acceptance and no refund
if you have reached here you already know that the advantages and disadvantages of cryptocurrency relate in some way or the other. on one hand where the acceptance is increasing for crypto payments, right now it is very very limited. you cannot make all the payments via crypto if you are living in India. people are still adapting to the idea of crypto. Even today, you would not find everyone staunchly supporting the idea of digital currency.
not to forget that you would not be able to get any refund via crypto major reason is the highly fluctuating prices. so if you have made a payment via crypto, there is no possible option of getting a refund in crypto itself.
4. chances of losing your virtual wallet
well, to be fair this doesn’t always happen, especially now that India has many many apps allowing people to create their wallets. but if you are using a decentralised wallet, you would have to remember your private key AT ALL COSTS. if you forget about your private key, chances are you would never be able to retain your money.
but if you are using a centralized wallet like wazirx, zebpay, coinswitch etc you can simply login to your account by entering your phone number. You may have to go through some process but you would most definitely not lose your wallet. Not to forget, again advantages and disadvantages of cryptocurrency move along, it’s in your hand how you can turn those cons to be pros
5. can lose value and become worthless
although we staunchly believe that the chances of crypto losing all its value and becoming worthless are zero, it might be possible. why? maybe if institutions start backing out from using good crypto projects for the company, chances are that there might be a huge fall in the demand and of course price of crypto.
or if in the future if companies find something more exciting than crypto and they decide to take a shift in that direction, the digital tokens would lose all their value. but as we said, we do not see that happening anytime soon because crypto is just the tip of an iceberg right now. there is a lot that we need to discover, a lot of profits that we gotta cut from crypto before we take a turn towards something different.
we believe teens nowadays are smarter than teens ever were and teens ever would be. do you know why? that’s because we are in the transition period. We have the smartness of the old days and the modernity of the future. crypto is a revolution, for sure. to miss out on such a legendary thing would be nothing less than missing out to be a part of the future.
one more factor that can be counted to be in the advantages and disadvantages of cryptocurrency is that they are limited. so if you are running behind in the race, you might not have your hands on the future gem.
so, fellas, that was all about the advantages and disadvantages of cryptocurrency in India. do not forget to do your research before you go and buy some of the booming tokens. if you’re someone who starts having FOMO about every popular thing, then we think you should run and grab some coins as soon as possible.
till then, stay smilin’ stay richie rich.
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