The emergence of cryptocurrency is no less than a boon. As a matter of fact, the global cryptocurrency size stood at USD 754.0 million in the year 2019. And it is predicted to reach the mark of USD 1,758.0 million by the year 2027. So, if we are to consider these stats, then it seems that the phenomenon called cryptocurrency is the future that is here to stay for the long run.
However, there area couple of downturns and major challenges associated with the phenomenon. Now that you are eager to explore the bigger truth and know about the major downturns associated with the idea behind cryptocurrency, take some time to read this insightful blog.
Here’s everything you need to know.
1. Cryptocurrencies are always vulnerable to security risks
This is perhaps one of the major challenges faced by bitcoin investors. There is always a high risk of security breaches when it comes to dealing with cryptocurrency.
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- It is said that cryptocurrency, as a technology, is always at a high risk of being subjected to major cybersecurity breaches.
- According to reports, multiple ICOs got breached, which eventually costed investors hundreds of millions of dollars.
- In order to mitigate such threats, cybersecurity professionals will be required to up keep security protocols and infrastructures continuously.
This is the reason why different virtual security protocols safeguarding cryptocurrency essentials are being constantly reviewed and updated in accordance with the latest privacy trends.
2. Issues concerning government regulations and the likes
Even though the idea behind cryptocurrency appears to be ground-breaking and smart in every crucial aspect, the technology is yet to be adopted by different governing bodies.Unless the regulatory executives of different nations come together to accept and spread the word across every corner of the nation, the technology will always suffer in terms of mass acceptance.
Here are a couple of more points that will provide you with further insights into it.
- It is said, even if we hone the technology perfectly, until the idea is accepted and regulated by the federal government agencies, there will always be a risk in investing in this technology.
- In addition to these, there are other concerns associated with the phenomenon, in terms of logistical derivations and the likes.
- Unless the government or the government agencies are fully aware of the whereabouts and other key functional areas associated with cryptocurrency, things will remain complicated.
Thus, considering each of the points, as mentioned above, it seems that the changing protocols should be constantly intimated and make known to the concerned authority.Unless the idea of cryptocurrency is clear to one and all, things won’t be streamlined in a way it is expected to be.
3. Lack of inherent value is a serious concern as well
This is again one critical point to be acknowledged when it comes to talking about the global challenges faced by cryptocurrency. Odds such as lack of inherent value and price volatility go hand in hand, especially if we are to talk about the context of cryptocurrency and bitcoin.
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- Inherent value is the primary concern here. If there’s a lack in the inherent value of cryptocurrency, then the rest of the other applications are associated with it.
- Thus,to fix these issues, one needs to look for every other alternative, which might make the entire process tedious and a tad convoluted.
- However,it is also said that if we are successful in overcoming these hurdles and embrace the concept of cryptocurrency globally, then it will decrease volatility in the long run.
- This,as a result, will increase consumers’ confidence in the long run, thus,normalizing the idea of bitcoins and cryptocurrencies among every individual.
4. Cryptocurrency payment is an equally critical concern
Payment is one criticality if we are to talk about the major downturns associated with cryptocurrency. Here are some notable aspects for you to explore in order to dig deeper into the concerned topic.
- It is said that the functional areas of cryptocurrency are directly related to the aspect of wild fluctuations in market price.
- Asa result, it could simply give rise to investors’ concerns, as they would think or probably like to reconsider their decisions of investing in cryptocurrency.
- Also,the market price fluctuations make it way too difficult for companies to embrace cryptography as a reliable gateway for payments for goods and services.
In a world where students can get assignment help easily, advancements in payment gateways in the form of virtual currencies is certainly not a surprise. However, considering the rising concerns regarding the reach and potential of cryptography on a global scale, we should put forth serious efforts in overcoming the obstacles.With each passing day, as technology tends to get better and feasible across multiple domains, we should come together in an endeavour to embrace what’s new for a smarter tomorrow.