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What Are The Pros And Cons Of Cryptocurrencies?

The use of digital currencies is an entirely new thing, but it is getting popular, especially cryptocurrencies. It is a digital currency developed to function as an exchange agency.

It utilizes cryptography to protect and verify transactions and to run the development of new units of a particular cryptocurrency. Sometimes it does not matter how advantageous things are. Everything has it’s good and bad. That’s what you’ll know here about cryptocurrencies.

Major Pros of Cryptocurrencies

Motility

This is one of the biggest benefits you get using cryptocurrencies. You are able to transport a huge amount of cryptocurrencies at one go very much, unlike real money. You can carry billions of bitcoins with you in a memory drive.

Clarity

You get an open ledger with bitcoin known as a blockchain. On a blockchain, each and every transaction is recorded and tracked. As a result, once a transaction is accomplished and recorded on the ledger, it cannot be altered. Thus, this is the most secure transaction.

Under your Control

Every user is under the control of his or her transactions. This is helpful enough to keep the amount safe. The transaction done does not depend on the identities of the parties making it. Thus, it is an excellent approach in favor of the users that guard them against identity theft.

No Inflation

The Government keeps on printing more money, and the economy keeps on shifting prices. This is why all traditional currencies experience inflation. But, it is not the case for bitcoins or other cryptocurrencies. Why? Because there is a limited count of minable bitcoins.

Population growth would come to rest when there would be 10 billion people by 2050, based on research. The last bitcoins will be extracted around this period, and the market would get no more.

Cons of Cryptocurrencies

Uplifted Explosiveness

Cryptocurrency ICOs are way more explosive or volatile when compared to investing in the stock market or real estate. A small hack can cause a considerable loss of the investors. Such drastic incidents are rare in the case of cryptocurrency, but things should be carried forward very carefully.

Possible Network Stall

Building up a sturdy product that a particular network of users would desire to use is what the actual worth of any cryptocurrency relies on.

But, by any chance, the network crashes to attract users or not get enough users to use the platform, the currency would be facing a snooze in price. A lot of the current ICOs that failed to perform after launching did so for a deficiency of management of the network.

Scarcity of Resources

If cryptocurrency ICOs do not elevate enough money, just as startups can lose resources and cannot carry out operations. Many cryptocurrencies are doing pre-ICO elevation to get strong commitments of resources and illustrated demand for the currency.

Plausible mismanagement

New investment pathways come up every day, and this is why it isn’t easy to keep up with what options you have for wealth management. Good portfolios are prone to include some riskier assets like venture capital, while portfolios should be balanced.

Conclusion

So, that was all you needed to know about the goods and bads if you are making any transaction or exchange with cryptocurrencies. Now, knowing the cons you might question would the pros manage to cover the negatives. Well, it depends on how you intend to move.

Buying bitcoins for trading at a later time has been proven to be the right decision. One thing is for sure; cryptocurrencies are looking up unlike saving real money that would be wiped out in time due to inflation, at least in the foreseen upcoming times.

Crypto Not As Inconsistent As It Seems

According to Andreessen Horowitz, the venture capital firm owner, there is continuous growth and demand for cryptocurrency. There are social media, developers, and startups that are using the crypto cycle. It is giving favorable results for the investors. A report released by the US-based company analyzed the crypto of the last few years, i.e., 2012, 2013, and 2017 and saw a steep rise since 2010. Many projects are using cryptocurrencies such as payments, infrastructure, games, and finance, and web applications.

Though the cycle of cryptocurrency is found to be messy, there is a massive growth of cryptocurrency in startups. Many innovations are happening based on the cryptocurrency. Many entrepreneurs and technologists are evincing interest in using the cryptocurrencies. Everyone is enthusiastic about using this type of digital currency.

Coinmarketcap disclosed that cryptocurrency users increase in different countries such as India, Canada, Nigeria, Pakistan, and Columbia. There is an increase in female users who are using this type of currency in Greece and Romania.

Entrepreneurs are not ignoring cryptocurrency and blockchain. There is no sign of the cryptocurrency slowing down.

The blockchain-based information and tokens are giving many opportunities for entrepreneurs. It is helping to come up with innovative solutions that are highly secure, transparent, and fast.

Here is how crypto is bringing a change in the entrepreneur world:

Give access to entrepreneurship education.

People of all ages and from different walks of life would show interest in becoming an entrepreneur. Not many would have enough money to pursue their management degree from the top colleges, which would have a whopping fee. Moreover, the regular job would not let people pursue their entrepreneurial dreams as they could not enroll in the management degree.

Despite going for formal education, many entrepreneurs are not showing interest in the new way of getting educated and looking out for affordable educational options that allow them to hone their business skills. Blockchain tokens are being used to access the video content, digital courses, and provide coaching to the budding entrepreneurs. It covers various topics. The immutable ledger and smart contracts offer ample educational opportunities for people to have cost-effective education. All the entrepreneurs would need is to have access to the educational content.

Unlock the potential of crowd opportunities

The impact of crypto and blockchain is that it is allowing entrepreneurs to carry out crowdfunding campaigns. The blockchain startups would use USD 5.6 billion of funds for community campaigns. The fundraising model using the blockchain has found to be grabbing a lot of investment.

Give new opportunities

There are many ways that an entrepreneur would look to diversify their investment. The coin-based transactions are giving new hopes for them. Many industries widely use blockchain. The token-based opportunities would help the entrepreneurs to buy assets by abiding by the laws and regulations.

Develop a loyalty platform

Businesses need to gain customer loyalty. It strengthens the relationship between customers and businesses. Many customer loyalty issues would arise, which causes headache and increase bookkeeping issues. The blockchain would reduce the entrepreneurs’ stress by helping them come up with the stress-free customer loyalty programs, reward customers, and strengthen their relationships.

Rise of the cryptocurrency market

A decade ago, cryptocurrency was just studied in books, but now the majority of the population is aware of it. It changed with the creation of bitcoin. Though, many are not aware of how the cryptocurrency market functions, but they are aware of the cryptocurrencies.

The cryptocurrency is gaining huge popularity in the government sector and businesses.

  • Governments and big corporations keep a close watch on the cryptocurrency market to find out how they can embrace the cryptocurrency mechanism and use blockchain technology.
  • Many companies are using blockchain to check the feasibility of integrating technology into business.
  • Internet would connect people and let them exchange data, and today blockchain is considered the second internet.

Future of cryptocurrencies

There is nothing that can help you anticipate the future of cryptocurrencies; however, if bitcoin is going to be successful, cryptocurrencies would have a bright future.

The price of a bitcoin was just USD 280 in 2015, and it rose to USD 1000 in 2017. There is a steep rise in the demand for cryptocurrency. The bitcoin price has increased to USD 17,000. There is another cryptocurrency known as Ether that has grown at a rapid pace.

Initial coin offerings (ICO) would be playing a critical role in the cryptocurrency market. It makes use of the coins or the tokens to buy a share in the company. These are given to the investors who are involved in the initial public offering (IPO) transaction. You can link ICO to the crowdfunding and use this as a way to earn funds by the startup companies. Many assumed that this type of currency would go into oblivion. However, the market is consistent though it seems to be inconsistent.

Conclusion

The crypto world is not as inconsistent as it seems. There is a steep growth in the industry since its inception. Many innovations are happening around the cryptocurrency.

Binance Charity Launches A Fully-Transparent COVID-19 Relief Fundraiser

Binance Charity, a blockchain NGO, striving to fight various social problems, is now up-in-arms with the on-going COVID-19 pandemic. In a recent press release, the NGO announced that it would be launching a ‘First-ever, fully-transparent campaign’ to provide relief to affected countries worldwide. The campaign titled, ‘Crypto Against COVID’ aims to raise funds from the blockchain and cryptocurrency markets to combat this global pandemic.

The Head of Binance Charity, Helen Hai, said, “Binance is proud to help those on the front lines of the fight against the global pandemic, through direct contributions and a platform that will continue to help long after COVID. Blockchain is a powerful antidote to a problem that has long plagued the philanthropy sector: distributed ledgers have the speed, scalability, and immutability to alleviate donor concerns, ultimately maximizing charitable impact. At Binance Charity, our mission is to amplify the use of this cutting-edge technology for social good, and with COVID-19’s unprecedented arrival and startling spread, we have provided a trustworthy approach to remedying the spread of the pandemic.”

Binance Charity so far has provided thousands of PPE kits (personal protective equipment) to hospitals in China, Italy, Spain, and other severely affected countries. The organization firmly believes that most people are unable to track their donations due to the lack of transparency. Therefore, they have ensured that their campaign will be 100% transparent. They have taken the fight against the Coronavirus to the crypto market, where donors can track the funds using a unique transaction ID.

Focusing their efforts on New York, the press release further mentioned that the magnitude of cases in the city was severe. New York is the worst-affected state in the USA, with over 387,000 people affected with Coronavirus. They selected 11 hospitals in the city to fulfill the urgent need of N95 masks. The hospitals that benefitted in the city included NY Presbyterian Hospital, NYU Langone, Lenox Hill Hospital, Mount Sinai Beth Israel, Staten Island University Hospital, Huntington Hospital, Walter Reed Army Medical Center, among others.

Binance had started a social impact cryptocurrency called PPE Token, which showed the powerful impact of cryptocurrency. They successfully managed to deliver 200,000 N95 masks untampered to eleven hospitals in and around New York. PPE Token had administered complete transparency on its public ledger. It provided information regarding the channels from where the donations came, its distribution, and how it was redeemed. It included the details of the purchase of the N95 masks, flight details for transporting them, and also photographic evidence of hospitals receiving them.

The Crypto Against COVID campaign has managed to raise over $4 million till now, which has allowed them to provide around 1 million healthcare kits to hospitals around the globe. Countries like India, China, Italy, Spain, Turkey, the United States, and more have been gravely affected during this pandemic and have immensely benefitted from this fundraiser.

The founder and CEO of Binance, Changpeng Zhao, mentions on their website, “The crypto community is a growing force, and we have an opportunity to strengthen this through philanthropy. We encourage the community to take part in this initiative as we unite against COVID-19, and together, we’ll drive impact.”

Binance is one of the world’s major cryptocurrency exchange. It started its Blockchain Charity Foundation in 2018, intending to change the transparency aspect of donations. Besides, the COVID-19 crisis, this foundation has strived to part-take in several other social problems that are faced globally. They aim to unite the global crypto community to eradicate the root cause of social issues and transform into a better society.