Blockchain: Dark Sides That Might Affect Future Performance
The information provided on this website and in this article does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website's content as such. ICORating.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
Cryptocurrencies have been around for years, but the public still makes thousands to millions of investments each year. That isn’t a surprise if you consider the exchange value of Bitcoin and other cryptocurrencies in the crypto market.
But remember that the intensity of the volatility of digital coins catches the attention of hackers and other cybercriminals. Who doesn’t want a hefty profit?
Yes, besides traditional finance, hackers and scammers can make big profits using cryptocurrency scams. If this goes on, the result might be inevitable – cryptocurrency’s future is jeopardized.
In this article, you’ll learn about the pitfalls or dark sides of cryptocurrency. Here we go!
Blockchain Anonymity Is Also a Weakness
One awesome thing that people like about cryptocurrency is its anonymity. Blockchain technology is very secure because each transaction you make is encrypted, and you remain anonymous in the crypto world. That’s a good thing because you keep your money and yourself safe.
Well, not quite.
You see, cryptocurrency anonymity poses a threat to Bitcoin and other digital currency users. Why? The answer is simple – the anonymity of cryptocurrency itself.
Since crypto users are anonymous online, so as criminals. For example, a hacker who steals from your account wouldn’t get recognized easily because the user is also anonymous. According to crypto experts, authorities are needed to capture and stop criminals in the digital market.
Well, another pitfall of cryptocurrency is it doesn’t have any central authority. Experts are afraid that the situation would get worse in the future as crypto technology becomes bigger.
Cryptocurrency Price Manipulation
An old and common problem in the financial market is price manipulation. Sadly, Bitcoin isn’t immune to price manipulation as well. Scammers and other individuals work together to manipulate cryptocurrency with the aim to get high profits.
Yes, these swindlers are often successful in efforts to steal thousands to millions of Bitcoins and other cryptocurrencies from the past years. Price manipulation of digital currencies is the reason for the sudden rise and fall of Bitcoin prices each year.
Investigations are often made, and a large issue that’s often out - insufficient transparency of crypto users and their trading platform. Investigators are eyeing more cooperation between trading platforms and regulators.
Due to consistent price manipulation practice, many Bitcoin users are shifting towards physical coins and money. But others still hold on to the bright future that cryptocurrency offers.
Hope for Blockchain Technology
The decentralized system that reflects blockchain still brings hope despite its dark sides. The decentralized database allows crypto users to track information securely. Since the technology is tamper-proof, there isn’t much to worry about security at all times.
Blockchain works beyond safeguarding your assets. Blockchain has the potential in solving different types of problems, such as the following:
- Identification of individuals
- Final system stabilization
- Title establishment to media and real estate
- Efficient supply chain management
Despite these, challenges for blockchain users remain. People who are new to blockchain technology might find it difficult at first to secure their assets. Old and new Bitcoin users aren’t safe all the time from scams and cyber-attacks.
In the past years, Bitcoin users lost millions of dollars because of scams and fraud activities. Hackers aren’t also using old-fashioned tools but also high-tech software such as robots to establish their schemes. Experts continue to warn the public against these hacker attacks.
Some information about Bitcoin, Ethereum, and other cryptocurrencies available at https://bwcevent.com. But do your own research and remember, trading is always risky, and there is always an opportunity of losing money. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.