Top 4 Reasons Why Cryptocurrency Investment Is Detrimental

Is Cryptocurrency investment always on your mind? Or are you thinking about where to invest in crypto? Set back for a while and reanalyze your financial plans!

Cryptocurrency has been around since 2008 after the invention of Bitcoin, and still a nascent technology. Be aware of the following threats before you give them a shot. Here is a list of some Crypto cons:

Apart from other Cryptocurrency cons, volatility remains on top. If you are looking for a stable source for your investment then crypto is surely not a good option. People are just flocking into Cryptocurrency investment based on unpredictable information floating on the internet.

The value of coins is vulnerable to price fluctuations. The price might spike to unreachable heights before crashing to the grounds just as quickly. Thus scalability issues tied with zero generation of cash flow is a big red flag.

The system which operates the cryptocurrencies is generally safe but hackers can use malicious methods like phishing and social engineering. Cryptocurrency is entirely anonymous. The identity of a person remains veiled while executing a transaction hence you’ll be unaware of the contractor.

If you buy a product and it is not up to the mark, you can contact the retailer again but in the case of cryptocurrency investment, you are left with nothing as your money goes down in the dump. Most of the transactions are irreversible and there is no support from banking systems.

The lack of supervisory management to keep a check on unfortunate events is a risk too. Cryptocurrencies are not backed by substantial assets. Moreover, its value is not imposed by any governance.

Since it is a virtual method of exchange and depends on electricity only, crypto contributes to global air pollution and climate change.

“A cynic is a man who knows the price of everything and the value of nothing” -Oscar Wilde

Cryptocurrency investment has received mixed reviews from mainstream media. Warren Buffet, a famous investor, termed bitcoin a “bubble”. He further stated that it is not a value-producing asset.

You should be careful and educate yourself before investing, as half information might cost you a fortune. Understand what you are getting into.

Contribute your thoughts in the comment section.

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