Digital currency is the future of traditional physical currencies and in this article, you will find the top 10 digital currency pros and cons.
The fast-growing of online purchasing, transactions, and internet usage for almost everything in our lifestyle was the main reason for the invention of digital currencies.
Moreover, since no one sees the actual physical money transactions, it’s better to use the digital currencies since they are much more environmentally friendly as well.
What Is Digital Currency?
The Main Digital currency’s idea came out because there are many online transactions happens in our day to day online transactions.
There are millions of transactions happening in our everyday lifestyles without seeing any physical currency transactions.
All those digital currency transactions are virtual and via the internet all around the world.
Who Invented The Digital Currency?
Since there was a limitation for using the traditional way of using the currencies the technology experts came out with an idea of creating the digital currency.
Online digital currency transactions are always much faster than regular online banking transactions.
Regular banking system transactions are time-consuming especially in online banking for international money transfers.
However, although the digital currencies are the better ideas, you should make sure the digital currency that you chose is backed up with valid actual and secure backup and it’s not bubbled’ based.
Investors should be-careful and do their research before putting their money toward investing in any type of digital currency.
Make sure to consult with an expert financial adviser in your area before moving forward in any type of investment.
Because the digital currency looks like a gold coin that doesn’t mean you should invest in them without any research or consultation.
However, the only actual gold value digital currency in the world is the KBC or KCB which are safe and secure.
If you need more information about the KCB please click here.
The Pros of Digital Currency
What Are the Advantages of Using Digital Currency?
1- Easier Transactions all Around The World
Since no government or bank is controlling the digital currencies, there are no transaction fees or limitations.
With digital currency, the purchase value of the item stays the same in the x-change market all around the world and the transactions happen via the internet within a few minutes.
There is no waiting time for international transactions, which takes time if you do any transactions with bank money transfer which takes days to finish the transaction process.
Digital currencies are all online and virtual with the great advantage of technology the transactions happen within a few minutes.
2- Digital Currency is Based On BlockChain Technology
Blockchain technology means when a transaction happens, you can keep track of your transactions and how it’s been delivered and where it goes.
You can keep track of your money investment and the digital form of your cash flow.
Soon you can use it in your bank account as the regular money and do your regular transactions.
A blockchain, originally block chain, is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a merkle tree root hash). By design, a blockchain is resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way 1
3- You Can Use Digital Currency as an Investment
There are many types of digital currencies in the x-change market and are in the stock market.
People can invest in a reliable and trusted digital currency or cryptocurrency and it is a very good source of investment.
Please note: you should do your research before investing in any type of digital currency, and make sure they are valid with trusted backup.
For example, investing in KCB Karat Coin Bank is backed up with actual 24k Gold and it’s a very good investment because gold never goes bad.
On the other hand, investing in Bubbles is a very risky decision, and you might lose all your money at any time.
You can’t just jump into purchasing any type of shiny coins, make sure you buy something valuable.
4- You can Invest and Do Transactions at The Same Time
Means, you can invest in digital currency and at the same time, you can make a purchase as well.
However, only a few companies are accepting digital currencies so far, and hopefully, the banking system will accept using the digital currency of their trust kind and offer it to their clients.
There is no waiting period to be able to use them in the market and make your purchase.
5- Transfer the Digital Currency into Traditional currency
The transformation between the digital currency into the actual money via the x-change market is easy.
All you have to do is to create a wallet and start purchasing cryptocurrency from the x-change market.
It’s like a regular stock market investment and you can cash it out at any time you want to or vise versa, just purchase more digital currencies with your physical money.
Cons of Digital Currency
What are The Disadvantages of Digital Currencies
6-No Actual Support or Law From The Governments
With digital currency, because there is no government support behind the digital currencies, there is a high possibility of fraud in the system as well.
There are many types of digital currencies in the x-change market, without clear backups.
Many of those cryptocurrencies are just keep going up and down in the exchange market and it’s because of the amount of buying and selling from the investors.
Investors that don’t care about the actual values of their cryptos and as soon as they see the price of the certain crypto go down whey just purchase some and then sell it later with a little profit.
That’s how the price of some cryptocurrencies goes up for no reason and it’s all because of investors’ competitions.
Saying that, if you don’t do your do-diligent properly before investing in any type of digital currency you might become a victim of fraud without any support.
7- Security Issues By Hackers
Since digital currency is an online transaction it’s always a subject for hacking.
The wallets are based on the unique security key, which there is no backup from the wallet company!
They always warn you to keep it safe and if you lose it, you can’t have access to your money anymore.
As a result, hackers are sending you messages and providing some bonuses to get your private key and empty your wallet.
Moreover, the digital currency’s wallet doesn’t have any actual and real banking system behind it in many cases, except for the only digital coins which are:
8- Not Much Information About All The Digital Currencies
People just look at the exchange market and buy whatever is keep going up without checking the backup of that cryptocurrency.
In general, digital currencies are shared from technology, agriculture, mines, and so on.
Moreover, investors should make sure to contact an investment adviser before investing in any type of digital currency to not lose all their investment.
Some of the digital currencies are unknown and no one can track the sources and they are based on nothing.
For example, Bitcoin has no clear backup and it’s just computer processors running to make bits! So What?
In my opinion, they are wasting a lot of electricity and has no real backup.
It’s a digital currency with digital bits as a backup!
However, just be careful with your choice of investment in any digital currency.
9- There is a Big Risk Of Governments Policies and Limitation In the Future
Since the virtual currency is new and the governments still don’t have any laws and regulations over any digital currencies, there is a big chance and risk that will be subject to tax and transactions limitation in the future.
So, you might not be able to cash out your digital currency freely without any law and policies to follow.
The governments might close some of the none valuable digital currencies to make sure people are investing in the right type of virtual currencies.
10- Not All the Banking System Support Digital Currency
It’s only a few companies that accept digital currencies. There is no actual banking system yet for any type of digital currency except the KCB Karat Coin Bank which has its banking system, apps, and bank cards.
Also, KCB has its credit card, apps, bank, and ATMs and you don’t have to create the wallet and you can purchase directly with your card.
KCB Karat Coin Bank is the only digital banking system all around the world which you can invest in it with trust.
The price volatility should be a concern as well since there is no banking system to control it and it’s all based on the amount of investment in each type of digital currency.
The future is not certain and no one knows what will be the future of digital currencies except the one that already backed with actual values such as Ethereum, ICO, KCB which we all know they have an actual real value.
The idea of digital currency is brilliant and it contains a lot of benefits in the ecosystem and helps with the pollution problem since everything is via the internet and all the transactions happen in digital format.
Very possible that digital currency will become globally and replaces the old traditional way of the money system shortly.
It’s the combination of digital currency which you can purchase your goods with it and also an investment and stock market x-changes.
However, if you are a risk-taker and think positively about the idea of digital currency and all cryptocurrencies, feel free to invest in such a new way of a global monetary system.