An interesting question is whether crypto could be destroying the world as we know it. People who doubt cryptocurrencies point to the volatility in price of coins like Bitcoin and Ethereum as proof that they are not legitimate investments. This is because people buy up large chunks when prices are high and then sell them when they think prices are low- this can lead to a rapid fluctuation in price.
These are the many reasons why cryptocurrencies might be bad for society, such as how they function without any regulation and might be used to fund crimes or terrorism or how they can possibly replace banks completely if people decide to stop using fiat currencies. There is also the argument that Bitcoin may only be useful as a speculative tool while some fear that it could eventually lead to the failure of the global economy
Cryptocurrencies have three main characteristics that distinguish them from traditional investment vehicles: (i) they are not backed by a central bank; (ii) transactions are peer-to-peer and thus cannot be traced; and (iii) they are created by decentralized computers which produce new units at regular intervals. These three features create an environment that is ripe for abuse through illicit transactions in areas such as human trafficking, drug distribution, smuggling of illegal items, weapons, or terrorism financing.
The lack of a robust understanding of the supply and demand dynamics in crypto markets is one of the major reasons why it is difficult to track down cryptos. As more people want to cash out their crypto, there will be more pressure on exchanges and this also leads to greater difficulties in tracking down transactions.
But with increased pressure from regulators, exchanges are being forced to comply with stricter KYC/AML norms that will lead to a reduction in fraud and theft.
This means that all transactions will be recorded on a digital LEDGER on the blockchain for everyone to access. However, the holder of the bitcoins is still anonymous and can change his or her pseudonym and location at any time.
Currently, there is no global database for all cryptocurrencies on the market today, so this is an ongoing issue in this industry. Transactions cannot be monitored by any central authority like banks or governments. So Do you think we should stop putting money in Crypto or Not?
