Many people praise cryptocurrency and digital currency. However, many individuals are suspicious of cryptocurrency in India. Cryptocurrency disadvantages have been cited by the rich and famous, and successful investors like Warren Buffet have referred to digital currency as “the next bubble”. Considering that bubbles burst, it is vital to know what these drawbacks are so we can make informed investment decisions. Below, we have jotted down the cons of cryptocurrency you need to know.
Scaling Problems
One of the largest problems with cryptocurrencies has to do with scalability. The adoption of digital coins and the sheer number of these are on the rise. While viewing the advantages and disadvantages of cryptocurrency, this may be seen as an advantage to the crypto fans who welcome the variety. Also, the speed at which transactions in crypto are made is no match for players like MasterCard and Visa. The problems of scale in cryptocurrency lie in their infrastructure and technology.
Crypto Exchange Security
As known, Cryptocurrency relies heavily on digital technology. As a result of this, it is open to violations in cybersecurity. Among some worries over dealing with any crypto exchange is the fact that accounts can be hacked into. Further, Traditional banking security criteria are not going to cut it for digital currency safety maintenance.
Cryptocurrency Value and Volatility
Another point is Cryptocurrency in India has taken over young and old inveinvestors’ds with colorful thoughts of making promising returns. Many investors are riding the wave of cryptocurrency, there are several who are finding out that cryptocurrency prices tend to be prone to a degree of volatility. This is because cryptocurrency displays some lack in its innate value, as digital currency is not connected to any tangible assets.
Lack of Proper Regulation
Well, due to the obvious lack of any supervisory management, the system is bound to “implode”, to quote the word that Buffet used. You may perfect the inherent technology, but unless a regulatory entity does not adopt cryptocurrency, there will always stand to be a risk looming large.
Worries About Changing Technology
In India, there are specific logistical problems with trading in cryptocurrency. These are largely connected with the technology that digital currency involves. For instance, when the technology related to cryptocurrency needs to be altered, the changing of protocols is required.
Summing up the lack of understanding of concepts surrounding the new currency is the greatest disadvantage. Cryptocurrency may take a while before you can get your head around it.