Digital Currency: The Pros and Cons

Digital currency

Digital currencies are basically currencies which are only transferable via the Internet. They are not so different from the conventional currencies, performing the same function as them, but only differ from them in the money-transaction attribute. They allow you to transfer money with help of computer networks. It might even replace the current currency one day, but some disagree with that. So, to clear the picture for you, we bring you a list of pros and cons of digital currencies:

ADVANTAGES:

1) Easy Transaction: With being available to almost everyone, Digital currencies have become quite easily accessible. And they even save a lot of your time and patience because you don’t need to fill all your credit/debit card details which take up half of your energy. All you need to do is just type in the address of the wallet of the person you wish to send the money to and in a few seconds, the transaction will be completed.

2) Inexpensive: Unlike credit card/debit card companies and banks which impose a heavy fee on you, digital currencies relief you of the fee.

3) Privacy is respected: With digital currencies, you get the option to hide your identity and the details of the transaction made by you. Not even a word gets out about your transactions to the government or the bank.

4) NO third party involved: The transaction is done between you and the other person only. Banks don’t play a part in the process. So, it makes the process much faster and simpler.

5) No frauds: You can simply print currency notes these days. Though it is determinable, but no one has the time to check each and every note. But with Digital currencies, this problem is eliminated because these currencies cannot be duplicated like conventional currencies. So, it reduces the possibility of fraud.

DISADVANTAGES:

1) Complicated: They are much more complex than current currencies. Without complete knowledge and understanding, you cannot invest on digital currencies.

2) Not acceptable everywhere: Digital currencies are not acceptable everywhere. They are not legal in some countries like Morocco, where bitcoin was introduces on 15 November, 2017 and was banned after few days, Kyrgyzstan, where the use of digital currencies is considered as a violation of the law.

3) Payments cannot be reverse: If you regret paying someone, well then you can live the rest of our life regretting because with digital currency there is no turning back. The only way you can get your money back is if you ask that person for your money personally.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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