Just like any other transaction, crypto currency provides the basis for the digital transaction across the world. These are the assets where an individual has a coin ownership and the records of the transactions are saved in a computerized ledger through cryptography to secure the transaction records and to maintain the issuance of the additional coins etc.
Cryptocurrencies like Bitcoins, Altcoins have either a centralized system, controlled by the economy or the government or the decentralized system, controlled by a distributed ledger technology known as blockchain. Over the years, cryptocurrency has reaped its benefits across different countries and in some countries it has been banned because of the challenges it faced over security, regulation etc.
One of the major advantages cryptocurrency pose is that these digital technologies don’t have any middleman present which is allowing small countries to stabilize and grow their economies as a start-up businesses. These transactions are faster, easier and require less to no additional fees. Cryptocurrencies provide the fastest mode of transactions even for any international exchanges as these currencies are exchanges over the internet which requires very less to no time in completing the desired purpose. They provide confidentiality with their transactions as they have a decentralised system- blockchain where there is almost less to no possibility of identity theft. The advantage of decentralization itself becomes a disadvantage for the currency as these are still being organised and regulated by the creators and the organisation behind these currencies. The surge of bitcoins have led to the surge of illegal transactions on sites such as called darknet. Since these transactions are very difficult to track because of its high confidentiality government cannot track them leading to prohibitions of the same leading to ban in several countries including Egypt, Pakistan, China Iran and several others. Some countries have put a banned on the bitcoin advertisement. Bitcoins though run on the digitalised ledger, if by any chance the data is lost, then any kind or transaction will lead to the financial loss of the party. These cryptocurrencies have no policy of cancellation and refund and the parties will suffer even in the cases hacking crores of rupees.
Studies have shown that cryptocurrency have the potential to eradicate poverty since many underprivileged people have the access to internet these days as compared to any banks and financial institutions. With all its benefits to provide for the society and especially diminishing the gap between haves and have not and have adverse effects on the environment as it requires high amounts of energy to harness them which does not sit well with environmentalists.
