Authorities Piles Stress on Cryptocurrency Sector as Bitcoin …

The cryptocurrency sector is definitely facing a lot at the moment. There are controversies surrounding the cryptocurrencies that are released by central banks. This is not looking good as Bitcoin lost more than a fifth of its value in the past 30 days alone.

As a result of the fact that Bitcoin has maintained a trend with equities, the recent development is going to be worrisome for many stakeholders. An even more interesting issue relating to this is whether Bitcoin can be considered a measure of risk or if it is a recipient of risk avoidance itself. Truly, in the cryptocurrency sector outside the United States, the widely-held view is that cryptocurrencies are secure. Some believe that they are so secure that they have compared them to gold.

Upon taking a closer and non-sentimental look, it becomes apparent that Bitcoin is far from being safe as investment vehicles. This is not applicable to Bitcoin alone but all kinds of cryptocurrencies. These digital currencies have not been successful in achieving the aims and lofty objectives that they were created for in the first place. This is because they are not being used as a typical means of exchange in everyday transactions.

The plan was for these cryptocurrencies to replace fiat currencies but that is clearly not the case. In fact, only a handful of retailers accept them and even far fewer customers make use of them regularly. This is not to even add to the fact that the costs of the transaction with cryptocurrencies are still very expensive.

There are some other reasons as to why cryptocurrencies are still rejected by most of the population. The complexity of the technology that drives cryptocurrencies is far from being attractive. For so many users, to set up their own crypto wallets is just too much hassle. Even worse is the fact that they have to be jugging crypto prices in their heads every time.

Hence, there is really no ease of use when it comes to cryptocurrencies. It has been a major obstacle to the universal use and acceptance of Bitcoin and other cryptocurrencies. Only time will tell if this is a trend that will change for the better or for worse. But that is not even all.

The system that the whole cryptocurrency niche is built upon is not as strong or reliable as many would want to think. For example, several crypto exchanges are often targeted by hackers and ransom takers. In fact, authorities in different countries can close them down at any time and for any reason. So, there goes the claim that cryptocurrencies are all about security.

When also viewed as an asset, one sees clearly that Bitcoin cannot just match up with gold. There is strictly no basis for comparison. This is not to say that Bitcoin cannot be good as a source of diversified portfolios but it is not just in the same category as gold.

The post Government Piles Pressure on Cryptocurrency Sector as Bitcoin Slumps appeared first on InsideBitcoins.com.

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Authorities Piles Stress on Cryptocurrency Sector as Bitcoin ...