Governance and maintenance are handled by miners, ensuring accurate and decentralized transaction records.
Decentralized:
Cryptocurrencies operate without centralized control, preventing monopolies and maintaining stability.
Cost-effective mode of transaction:
Cryptocurrency transactions across borders incur minimal or zero fees by eliminating the need for third-party verifications.
Currency exchanges finish smoothly:
Cryptocurrencies can be converted across various fiat currencies with minimal transaction fees.
Secure and private:
Cryptocurrencies offer enhanced security and privacy through blockchain technology and pseudonymous transactions.
Easy transfer of funds:
Cryptocurrency transactions, whether domestic or international, are fast and efficient, requiring minimal processing time.
Disadvantages of Cryptocurrency:
Illegal transactions: The high privacy and security of cryptocurrency transactions pose challenges for governments in tracking and preventing illegal activities.
Risk of Data Loss:
Losing the private key to a cryptocurrency wallet results in irreversible loss, making recovery impossible.
Power lies in few hands:
Despite decentralization, some cryptocurrencies are influenced by creators and organizations, allowing manipulation and price volatility.
Buying NFTs with other tokens:
Limited trading options for certain cryptocurrencies may lead to additional transaction fees and inconvenience.
No refund or cancellation:
Disputes or mistakes in transactions cannot be rectified, potentially leading to fraudulent activities.
High consumption of Energy:
Cryptocurrency mining, especially for Bitcoin, demands significant computational power and energy, contributing to environmental concerns.
Vulnerable to hacks:
While cryptocurrencies themselves are secure, exchanges may be susceptible to hacking, risking the loss of substantial amounts of funds.
