Cryptocurrency is not a physical asset its form of digital currency that is independent of any central bank or government regulations. These types of money uses encrypted cryptographic technology to perform operations on regular currency.Pros and Cons of Cryptocurrency

This encryption technique is used to generate more currency units and verify fund transfers and other operations. This is why its users are increasing because of its anonymity and privacy provided while doing the transactions.

Cryptocurrency can also be converted to general currency also called fiat currency but it’s not widely accepted globally. Though cryptocurrency has gained popularity worldwide its acceptance is also questionable.

There were one or two issues in the past with the websites using cryptocurrency for doing the black market or money laundering issues like. For example, the dark web marketplace Silk Road used Bitcoin, it encouraged illegal drug purchases and other illicit activities before it was shut down in 2014. But again along with the benefits come the drawbacks of the digital money, here are some insight on the pros and cons of cryptocurrency.

Pros Of Cryptocurrency


All the transaction regarding cryptocurrencies are stored in public ledger or open ledger. This can be viewed by anyone at any time from anywhere, transparency in cryptocurrency is attracting many digital currency lovers.

Anyone can see how the market is running and analyse the currency scattered. Cryptocurrency is the only financial system where business or exchange is done with complete transparency and no one can change it after its done. Each transaction are available for verification for anyone anytime. 

Incentive to Invest

Cryptocurrency is new to most of the internet users but is gaining its popularity among tech-savvy. As its popularity rises and investment on cryptocurrency benefits with profits, more people will use it for the payment of work and invest in it.

The more users and growth in the community will be beneficial as per its speed, its facility of payment, its digital nature and low transaction costs which may lead to new business model, financial opportunities and online business strategies.

Low Transaction Costs

One of the attractive features of cryptocurrency is it doesn’t charge much for transaction. Merchant do not need to worry about the added expenses, lowering the price for customers. Cryptocurrency is virtual money you just need to access the computer, connect to the internet and transfer without any cost.

The check, bills, transfer charges are not required as the banks, holder needs to bear the cost of converting virtual currency into real currency which is very minimal.

No Inflation

The traditional currency experiences inflation because of government issue, economy, world market. But in the other hand cryptocurrency are far away from the reach of government, central bank, world bank or any authority or organisation.

It’s the most significant advantage, it could not be manipulated or forged as it is secured by cryptographic technique. As well as limited coins are to be used and mined in cryptocurrency, therefore no possibility of inflation in the system arises.


The network is distributed to all the participants, each computer mining currency is a member of this system. This means even the creator does not have the authority to dictate rules. Cryptocurrency is not stored in bank or company or have given control to some high-level authority or depends on individual currency, including the person and the company that created it.

The hackers and thieves either of them are confused as no physical, as well as digital identification, are known it’s just seen and transaction are being held and is transparent. Its control is over to the cryptographic technique and the system itself rather than to the person, groups or company.

Easy Access

Instant transaction is the key feature of cryptocurrencies, unlike physical cash, crypto can be transferred easily without detection. It has no timing you can use anytime, anywhere whenever needed. Like in some cases third parties are involved while buying a real estate large about is involved and delays happen.

Cryptocurrencies module eliminates the third party, or future date can be fixed for the payment in less expense on reaching the agreement. The transaction which eliminates the use of computers. The real-time transaction can be performed through mobile devices in an instant and that just carrying the memory disk is enough to access the amount.

Creates Network

It provides a network between the users, exchange of information between client is easy. All records of transactions made and amount of currency is stored by each client.

As cryptocurrencies have no master server to manage all transactions, any user can get the details of how many currencies is in the wallet and carry out their further deal, plan or investment. The network creates the bond of trust between all the users.


The possibility of your money to be stolen if private key is identified, the password that only you know. Your assets can never be frozen by government or bank in either condition if bank fails still it’s unaffected.

While using online apps or cards your information is to be shared which can be harmful if the server is hacked, here that possibility is eliminated. It cannot be traced meaning no organization can monitor your source of funds.

Users are only allowed public addresses which secures your personal information from identity theft.

Cons of Cryptocurrency


Its popularly known among the users but other people are unaware that this word exists. So, they don’t understand how it works, and people tend to be mistrustful of digital currency, the businesses which accepts payment from it are few.

The people who use cash or cards ignore even to hear about the cryptocurrency they don’t want to know its concept. They find it difficult and confusing to go through the whole new process when they are already using and are comfortable with their way of transactions.

Challenges of Market Fluctuations

The majority of people using cryptocurrencies are investing using them. The price of the cryptocurrencies fluctuates sharply due to the optimism of the initial investors, which leads to rise in price until it collapses and leads investors facing loss of funds.

The value of cryptocurrencies are volatile its keeps on changing and sometimes by wide margins. This means when the price rises people made quite a money and others lost their funds when price went down. This market fluctuation hampers its credibility.

Cryptocurrencies Identity/Not Accepted Widely/Acceptance

The identity of cryptocurrency is itself questionable cause it’s physical existence and worth is nothing. The currencies used worldwide is given a legal status or have a value such as in the case of silver and gold.

On the other hand, crypt has no underwritten value, they are not assigned a value by the government. That is why they are not accepted in most countries and on online websites. It makes it unpredictable and impractical for everyday use due to lack of acceptance. 

Increased Regulation 

As we know cryptocurrencies are not accepted globally, today we hear some countries have banned it, on the other hand, some has legalized it. This increases the confusion between the holders or towards their investment and future plans.

Some government decreases the value of the currency when it’s in rise, so it’s not even sure if the government legalizes it. It will be risk until it’s been adopted by the federal government and regulated by their law.

Cannot be Recovered if Lost or Stolen

As we know its the digital currency it cannot be traced or tracked ones it’s lost, no procedure or method is currently available for recovering it.

The best way to keep it safe is to keep it in memory drive and far from internet, as only encryption identifies the currency, whoever has the code owns the currency.

Cryptocurrency Payment

The sudden fluctuation in the market makes it’s unacceptable for payment. As the company agrees the payment there might be wide margin fluctuation which hampers the company.

It means neither the payment can be cancelled once it’s made, the price of currency can vary within an hour. This hamper the business that is why many companies are avoiding the cryptocurrency payment but they still invest in cryptocurrency it’s only they would not accept it because of its fluctuation.

Lack of Regulation Facilitates Activity on Black Market

The biggest drawback of cryptocurrency concerns to facilitate the unlawful activity. Crypto are popular tools for money laundering, they convert many black money to white income as its sources are unknown.

Its privacy and anonymity attracts black market and money launderers. Since the identities are not revealed just seeing the misuses won’t help even the governments to seize or track which encourages criminals to operate with ease.