Cryptocurrencies are dominating the world, and we all know that. However, it’s a 2.79 trillion-dollar industry. But crypto is bad in many aspects. The most common one would its hurting the environment and not being stable at all. Some other aspects are:
Volatile
One of the most common reasons why cryptocurrencies are bad is because they are extremely volatile. Now, I am not talking without facts. You can check for yourself. The prices of cryptocurrency go through swings. Sometimes the price of the crypto rises, and sometimes it falls. That is because crypto is a very unstable market, and any major event can change the market. Besides, the swings that they suffer are a lot. If you have researched a lot about crypto, then you know major cryptocurrencies like Bitcoin, Ethereum, and others also go through this swing day to day.
Valuating Crypto
It is impossible now to evaluate crypto. That is because, like other assets like shares and stocks, you can evaluate them from the company management, balance sheet, history, decision making, products and services, and by analyzing them, you can make up your mind whether to invest or not. But you can’t do that for crypto since you can’t touch them, and they don’t have that long history. At the same time, you can’t find any possible factor that will indicate that this cryptocurrency is good and perfect for investment.
Hurting the Environment
You can ask me how crypto can affect the environment. Well, many cryptocurrencies are created by mining and require a huge amount of continuous electricity supply. And we all know that electricity is generated by burning fossil fuels. Additionally, fossil fuels are extremely bad for our environment. And if you invest in the crypto that uses the mining process. That means you are supporting the process with your money and harming the environment. Now, if you don’t want to do that, then you should invest in the crypto that doesn’t support fossil fuel burning.
Taxation Is Complicated
Another major problem that makes me think that cryptocurrency is bad is taxation. Now, if you don’t pay tax on your earnings, then it will be illegal for you. It’s the basic law that you have to pay a certain amount to the government from your earnings so that government can benefit you with that amount. But, the major problem with crypto is you can’t figure out how to pay tax in crypto. You can use many methods, but all the available methods are way more complicated, and you and the authority have to go through lots of problems when filing taxes for crypto and the calculation as well.
Not Supported by Banks
Currently, banks don’t support crypto. Now, what I meant was cryptocurrency doesn’t have the full support of the banking system. And you have to go to some of the regulated and limited channels for crypto-based transactions. On the other hand, crypto doesn’t have an exchange value with banks, and it can’t be used in banks as well.