To understand the essence of cryptocurrency, it is necessary to emphasize its advantages and disadvantages. I also think that this path has its own beneficial and harmful pathways. Positive features: Open source code



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motivation essay


To understand the essence of cryptocurrency, it is necessary to emphasize its advantages and disadvantages. I also think that this path has its own beneficial and harmful pathways. Positive features: Open source code. Thanks to this feature, anyone can mine virtual coins. Despite the complexity of the process, many people find their lives this way. Anonymity. Unlike classic electronic money, it is not possible to easily track transactions with them, get information about the owner of the cryptocurrency wallet. Only wallet number and account limited information is available. Decentralization. Cryptocurrency is an independent currency. No one regulates its withdrawal and controls the movement of funds in the account. It is this feature that attracts many members of the Network. Restriction. As a rule, cryptocurrency is issued in limited quantities, which eliminates the risk of inflation due to the over-activity of the issuer. Reliability for copying. Hacking, tattooing or other similar manipulations with virtual currency does not work - it is reliably protected. Negative qualities: There is no guarantee. Each user is personally responsible for saving their funds. There are no regulatory mechanisms here, so in case of theft, it will not be possible to prove anything and return the money. Variability. Crypto-currency is unpredictable because it depends on current demand, which in turn can change depending on changes in legislation, current thinking, and other factors. Therefore, there are fluctuations in the price of virtual money. Risk of ban. Government structures are wary of cryptocurrencies. Many countries have restricted its use, and violators can be fined or even jailed. However, a number of European countries are still on the way to compromising on the use of such money. Risk of loss. The "key" to accessing e-money is a special password. If you lose it, the crypto coins in your wallet will not be available. As blockchain formation becomes increasingly complex, virtual currency mining is also losing its relevance. The cost of purchasing equipment and the cost of paying for electricity simply does not justify itself. This is why private companies that have the necessary capacity in recent years are in demand.
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