GIF source: google
As you know nothing is perfect in this Universe, everything has some drawback. So have a look some loss of having cryptocurrency:-
DISCLAIMER: I am not a financial advisor nor am I giving financial advice. I am sharing my biased opinion based on my researches. You should not take my opinion as financial advice. You should always do your research before making any investment. It is just an informative blog.
Before moving ahead Please read 1st part here
FAST & UNPREDICTABILITY: Cryptocurrencies are growing very fast day by day. New concepts arise and they are helping to solve our problem but we can't predict. People are becoming crazy to buy cryptocurrencies.
VOLATILE: Cryptocurrencies are volatile in nature no can predict what will be the price of the coin next day. Highly unstable in price.
- NO CALCULATION & PLANNING: We can't calculate its price. It can be high or can low we have both possibilities. We can't save crypto for our next generation.
- NO DEPENDENCY &INFLUENCE: In case of cryptocurrencies, we can't influence its price Bitcoin works on a very Complex Algorithm that's why we can't influence it. Most of people don't know how it works.
- MONEY LAUNDERING & BLACK MARKET: Crypto can be used for these purposes easily because no one is monitoring what you are doing whether it is wrong or right.
HACKERS: Anything can be hacked whether it is your credit card, debit card or your bank account but in this, you have your bank and government with you he will help you. In case of crypto, you can't do anything.
TERRORIST AND ILLEGAL ACTIVITY: Cryptocurrencies can be easily used for illegal activity because there is no third party involved then no one can trace your record. You are free to do whatever you want to do.
LIMITED TRACK & LOW CREDIBILITY: No one can see what will be after 1 or 2 years. Limited track supposes if you transferred your coins to wrong address then you can't reverse without the permission of Receiver because there is no third party.
NO TAX BENEFIT: In case of crypto we are neither getting any tax benefit at the time of investment nor at the time of return. For an example when you invest in equity-based investment you are able to get tax benefits at the time of investment and at the time of return as well.
TAX EVASION: Basically Tax evasion is the act of not reporting or underreporting taxable income or overstating
deductions in order to avoid paying tax on your true taxable income. It can also be applied to Federal Excise taxes
although in that case, it would be the under or nonreporting of taxable sales or failure to remit the tax collected.
- SELF BENEFIT & NO SOVEREIGN SUPPORT: In case of cryptocurrencies you are looking just your aspect, not the government. In case of crypto, Government can discourage you and Government will never support you.
These are the few drawbacks of investing in cryptocurrency. There is no doubt that Blockchain is future these are just possibilities it can be. So please don't take me wrong this was just a information that every person should know. If you have any suggestions then please let me know you're always welcome :)
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