Cryptocurrency Concerns: Issues Slowing Its Growth

Cryptocurrencies are all the rage right now. And why not? It is believed that it will shake up the financial landscape in the coming years and slowly, but surely, redefine how we view monetary transactions. However, while it brings with it umpteen benefits and ease of use, there are many drawbacks to going completely crypto too.

Financial analysts have shared their concerns regarding blockchain and crypto at various annual tech conferences such as the Internet 2.0 Conference, given the glaring security issues and the volatility of the market. By means of this blog, we will highlight some of the top concerns:

The question of cybersecurity

Going digital brings with it a set of novel risks and security threats. Crypto is no different, and we already have ample examples before us of ICOs getting hacked. These show us that attacks to capture crypto assets may be difficult but are quite possible. For instance, a crypto exchange can be the target of hackers and spammers who wish to steal information and obtain access to digital wallets. Therefore, to keep data safe, it is important to ensure that the security infrastructure of a crypto exchange is always up to date. This can go a long way in keeping fraudsters, hackers, and scammers out.

Substantial market risk

As you are aware, the cost and value of crypto can go up or down at any time. Crypto is especially vulnerable to sudden lows caused by negative news and too many restrictions being announced about crypto exchanges.

Then, there is also the concern around inheritance. Since there are no clear laws around cryptocurrency inheritance after the holder passes away, the people involved may have to pass through numerous hoops even to find out the actual amount of cryptocurrencies held by them. This may also spur malicious people to come forward and make fake claims.

Government regulations

Many federal governments have not reacted favorably to the crypto revolution. They continue to keep an eye on the developments, and many experts believe that stricter regulations may soon be around the corner. As the decentralized systems of cryptocurrencies do away with the need for middlemen or intermediaries to supervise transactions, cryptocurrencies may soon render central banks unnecessary, which is a key concern for federal governments.

In addition to this, the crypto world presents itself as an alternative and somewhat undermines the prominence of cash-based transactions in an increasingly digital economy. Thus, it has the potential to become a favorite of criminals who wish to avoid coming under the radar. Because of these reasons, a few countries, such as South Korea, have already put slabs on bitcoin trading.

Final words

The time is ripe to bring together bitcoin traders, cryptocurrency analysts, policymakers, investors, and cybersecurity experts to look for solutions to these concerning problems. Cryptocurrency and blockchain have a lot of potential; but if the fraud and cybersecurity issues are not addressed soon, then restrictions may pile up and affect its popularity and reach. Its growth primarily depends on the readiness of tech experts to bring about rapid and overwhelming changes in this realm. To explore this subject further, do make it a point to register for top technology conferences!