The Dark Side of Cryptocurrency

November 21, 2020

Sayan Mitra
48
Cryptocurrency is rising high in 2020. Since March this year, Cryptocurrency is on an upward trend. The current price of one Bitcoin is more than $18,000. It may touch $20,000 by December end. Experts are predicting the value of Bitcoin may reach $100,000 by 2025.
 
Cryptocurrency is a Blockchain-backed digital currency. It uses cryptography that ensures secure transactions. It is a decentralized peer-to-peer system. Bitcoin is the most popular Cryptocurrency in the world. Several other Cryptocurrencies are in use. It is not under any regulatory framework. Hence, there is a market risk in Cryptocurrencies.
 
We have always seen the rise and fall of Cryptocurrency throughout its history. Many big companies and organizations are entering the crypto market. Several financial institutions especially banks are embracing crypto in the last few years. Amazon, Microsoft, Square, BMW, Google, Citigroup, PayPal, have one thing in common. They all have already joined the crypto market.
 
Since its start in 2009, the first Cryptocurrency of the world, i.e. Bitcoin has seen a mixed fate. Crypto enthusiasts are very optimistic about it. They feel it has the potential to be the numero uno currency of the digital finance world. Amidst accolades, it has also seen resistance. Many skeptics are apprehensive of Cryptocurrency. Besides that, we have also seen illegal and criminal activities using crypto. Therefore, let us discuss the dark side of crypto.

The Dark Side of Cryptocurrency

Nobody talks about the darker side of Cryptocurrency. Mark Twain once said, “Every man is a moon and has a side which he turns toward nobody. You have to slip around behind it if you want to see it.”
 
Cryptocurrency has the following dark sides that need to watch for:

Lack of Security In Case of Any Loss

Bitcoin is a very safe and secure investment. Tampering with information is impossible. Blockchain and other technologies are behind the success of Cryptocurrency. But, if any hacker by chance steals your money then there is no way to get it back. Unlike physical currencies, crypto is not managed by any central authority.

The market is not regulated

Crypto trading is not under any central controlling authority. Till now, there is an absence of legal market regulations to handle Cryptocurrencies. Most governments of the world are skeptical about its feasibility. Except for Mexico, no other government has shown much interest in it.

Crypto Market is Fluctuating

The price of crypto is very fluctuating. We have seen a sudden collapse in price after continuous accent for months. This kind of trend is happening time and again. For some people, it is an avenue for investment. But for the majority of people, it is still an “unofficial currency”.

Difficult to Understand

Many small individual investors don’t have a clear understanding of Cryptocurrency. The functioning of crypto and Blockchain is not easy for many.
 
The currency was used for money laundering, terrorism activates, and many other illegal activities. The US authorities closed AlphaBay in 2017. AlphaBay was responsible for the illegal trafficking of drugs, firearms, hacking tools, etc.
Sayan Mitra
Sayan Mitra

Sayan is a writer by choice or rather by instincts. He had started as a content writer for an infrastructure development website. Over the years, he has been involved in several versatile projects, ranging from blogging to creative writing, penning down web content to site reviews. Tourism, fashion, real estate, gambling, sports, politics, business proposals, presentation work, technical writing, generalized topics – Sayan has done it all, with his words.

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