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Cryptocurrencies: The truths and lies of cryptocurrencies3 Minutos De Lectura

The truths and lies of Cryptocurrencies

Cryptocurrencies are still one of the most used and studied currencies, but it is still a digital currency. This means this coin has the same use as many other physical coins. In this way we have the possibility of making different types of payments between people or even businesses. Companies such as Microsoft, Destinia, WordPress, and many others allow within their platform, the purchase of their products with bitcoins and also with other cryptocurrencies, within their web pages.

To be able to delve into this topic, it is important to know its benefits and its different advantages. So we can have a much clearer vision of everything that encompasses it and the correct way in which to use it.

What are the advantages of cryptocurrencies?

  • They are recognized as global currencies

These virtual currencies are not regulated by any government organization, banks, financial institutions or even companies. With which we can use them anywhere in the world. In this way, this type of cryptocurrency is controlled by its own users, so that although the programmers try to improve their software, they cannot make any type of change without the consent of the clients.

  • They are recognized as very safe

Experts assure that it is impossible to counterfeit or even duplicate cryptocurrencies, this thanks to a combination of cryptographic techniques which are proven. Therefore, each person has special cryptographic keys, which are necessary to be able to carry out any type of operation.

  • Some cryptocurrencies are deflationary

Cryptocurrencies such as Bitcoin or even Litecoin, have limited the issuance of their virtual currencies, with which they have become deflationary cryptocurrencies, since their issuance is reduced over time.

  • They are described as transparent

All those transactions that are carried out through the Blockchain are made public. Said blockchain file is backed up on several computers within the same network, and not in a single place. Which allows the storage to be readable for all users, making it a transparent and difficult to alter coin.

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Disadvantages of cryptocurrencies

  • There is a high risk of losing money

One of the main dangers of this type of cryptocurrency and its riskiest characteristic is the fact that if you lose the password to enter your wallet, you are losing all the money you had there, since it is virtual money.

  • There may be various changes and lack within its regulation

It is currently working on its regulation since there are several directives of the European Union, which are attentive to their approval. Within Spain, it is used in particular for the use of remittances and also as an asset for multiple investments, for which new regulations are expected within the matter, which give greater stability and security to users.

  • There has come to be mistrust in potential users

The trend of cryptocurrencies has been a growing advance in recent years, which is why various companies still do not dare to use it continuously. This is due to the risk of fluctuations within its price, and also partly due to the ignorance of the benefits that this can bring.