Knowledge of Crypto Currency part 2

Let us see a few more advantages of Crypto:

1). Inflation Protection:

Due to inflation, the value of many currencies decline. Many folks see cryptocurrency as offering protection against inflation. Bitcoin has a hard cap on the whole number of coins that will ever be minted. For example, as the growth of the money supply overtakes the growth in the supply of Bitcoin, the price of Bitcoin shall increase. Many other cryptocurrencies use the same mechanism to cap supply as well as can act as a safeguard against inflation. In terms of quantity, there are only 21 million Bitcoins released as specified by the ASCII computer file. Therefore, because of an increase in demand, the value will rise which might keep up with the market and prevent inflation in the long run. 

2). Transactional Speed:
If you wish to transfer money to your loved ones for example, in the United States, there are a few ways to move assets or funds from one account to another very quickly. Cryptocurrency transactions are done in a matter of minutes and that is appealing to many. Within U.S. financial institutions, most of the transactions are settled in three to five days and wire transfers take at least 24 hours
3). Cost Effective Transactions:
Cryptocurrencies can help transfer funds globally. The transactional cost with the help of cryptocurrency can be minimal or zero. It is negligible as it eliminates the need for third parties like VISA to confirm transactions. 

4). Safe And Secure:

No one can access your funds unless they gain access to your crypto wallet’s private key. In case you forget or lose your key then you cannot recover your funds. Further, the transactions are secured by the blockchain system along with the scattered network of computers that verify the transactions. It’s more secure if investors keep crypto assets in their own wallets. The transactions are secured by the usage of public and private keys, proof of work or proof of stake and other various forms of incentive systems. Disadvantages of Crypto Currency

#1: Scalability

Probably the biggest concerns with cryptocurrencies are the problems with scaling that are posed. While the number of digital coins and adoption is increasing rapidly, it is still dwarfed by the number of transactions that payment giant, VISA, processes each day. Additionally, the speed of a transaction is another important metric that cryptocurrencies cannot compete with on the same level as players like VISA and Mastercard until the infrastructure delivering these technologies is massively scaled. Such an evolution is complex and difficult to do seamlessly. However, some have already proposed several solutions, including lightning networks, sharding, and staking as options to overcome the scalability issue.
Much time has been spent lauding blockchain and cryptocurrencies in this series. However, cryptocurrencies suffer from several drawbacks that have led many (such as famed investor Warrant Buffet) to refer to them as a the next “bubble”. As such, it is important to identify and to understand the drawbacks and obstacles that may refrain mainstream adoption of these technologies.

Drawback #2: Cybersecurity issues

As a digital technology, cryptocurrencies will be subject to cybersecurity breaches, and may fall into the hands of hackers. We have already seen evidence of this, with multiple ICOs getting breached and costing investors hundreds of millions of dollars this summer alone (one of these attacks by itself resulted in the loss of $473 million). Mitigating this will require continuous upkeep of security infrastructure, but we are already seeing many players dealing with this directly, and using enhanced cybersecurity measures that go beyond those used in the traditional banking industries.

#3: Price volatility and lack of inherent value

Price volatility, tied to a lack in inherent value, is a major problem, and one of the specifics that Buffet referred to specifically a few weeks ago when he characterized the cryptocurrency ecosystem as a bubble. It is an important concern, but one which can be overcome by linking the cryptocurrency value directly to tangible and intangible assets (as we have seen some new players do with diamonds or energy derivatives). Increased adoption should also increase consumer confidence and decrease this volatility.

#4: Regulations

Buffet also touched on this problem in his talk:

“It doesn’t make sense. This thing is not regulated. It’s not under control. It’s not under the supervision [of] any…United States Federal Reserve or any other central bank. I don’t believe in this whole thing at all. I think it’s going to implode.”

Even if we perfect the technology and get rid of all the problems listed above, until the technology is adopted by federal governments and regulated, there will be increased risk in investing in this technology.
Other concerns with the technology are mostly logistical in nature. For example, changing protocols, which becomes necessary when the tech is being improved, can take quite a long time and interrupt the normal flow of operations.