Cryptocurrencies have brought about a revolution in the market and it is believed to bring about a change in the economic structure especially in the financial institutions. There are various cryptocurrencies, but bitcoin has gained the most popularity. As there was no need for intermediary for the transactions to take place between two people or parties, cryptocurrencies gained a lot of acceptance as there would be no commission, delay and bureaucracy and red tape to follow for the transactions, which can be of any amount. Make use cash out for maximum benefit
How it is done
Since there is no intermediary, the recording is done digitally wherein each transaction is placed in blocks which are connected with hashtags to form a chain of blocks. This ensures high-level security which no one can breach. The sequence is of linear chronological nature wherein the parties transacting will never have their information in confidentiality. But it is possible to track the money which can be converted to cash as per requirement. Try and use cash out.
The non-usage of financial instruments for financial transactions and non-interference of the governments of the countries has left them threatened and compelled to boycott this system which they deem that stakeholders will be at risk with the kind of revolution and the countries may lose out on their economic power. They have claimed that
- There will be an increase in cyber crimes with the help of dark web and since the bitcoins transactions can’t be accounted for in the real world, you can’t hold a person or persons purchasing illegal things.
- The volatility of the currency has made it more speculative and cannot be so much used as currency but only for investment purposes
- The cost of investment in cryptocurrency is lesser than the stocks so the speculation is higher.
- The shifting power to the people has the government and central bank in knots. Now the people can make changes in the economic structure of a country. This may lead to the politicization of cryptocurrencies.
- There are chances of people using this opportunity for money laundering.
- Economic activities cannot be tracked.
This revelation has been at the forefront of many economic debates of various countries, but none of the countries is able to take the problem head-on.