5 SOLID REASONS WHY CRYPTOCURRENCIES AREN’T THE FUTURE
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The volatility is a major factor in any market of financial dependencies. In the stock market, the volatility is controlled by the government for the people in order to have a safe and proper trade. But in the unregulated market of cryptos, the volatility is on another level and you could easily see a cryptocurrency falling 30% within a day which is not good if you are keeping your savings invested in these.
The cryptocurrency was deliberately made against the usual rules that the economic world market follows where volatility was one of them. Control over these markets was another thing that the government wanted and as a result, the cryptocurrency market does not follow it.
THE CRASH OF CRYPTOS
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Due to the unregulated nature of these cryptocurrencies, people tend to shy away from investing huge sums in them and as a result, whenever fake news surfaces then people tend to panic and they withdraw money from these cryptos resulting in a bearish market or even a crash sometimes. Nowadays if you want to safely invest in crypto then you have only two option which is Bitcoin and Ethereum, others are all a kind of a gamble which should be handled carefully.
2. LACK OF CASHING OUT OPPORTUNITIES
There are zillion cryptocurrencies out there that have no base or future or use that are made deliberately to earn profits for the creator. These are some of the very first problems that create the lack of cashing out opportunities. The sheer number of altcoins creates the cashing out problem as well.
These are such high-gain high-risk investments that people should be worried about if they invest a lot in them from their portfolio. It is a no-brainer that you should never invest your life savings into something that creates a high-risk high reward situation. Mind you, cryptocurrencies are still a gamble, unlike the stock market which is regulated regularly by an authority.
There can be many situations in which one should be worried about cashing out rather than investing because the creator we have made zero charges on investment and 50% charges on cashing out opportunities, so a clear understanding should be made before investing anything anywhere in the cryptocurrency market.
3. THERE ARE TOO MANY OF THEM
With the dawn of the internet, it has given the same authority to each person on the face of the earth which enables everyone to have the same power regardless of their country. This power means everyone and I mean everyone can be a miner and creator of a cryptocurrency. This has led to uncountable numbers of cryptocurrencies being made worldwide.
You may ask why the new cryptos aren’t so popular? It is simply because they don’t focus on the technology and algorithm behind them regardless these are made to churn out exponential profit which is simply unacceptable for the long term.
The fact of the matter is that it takes literally no time to develop your own crypto currency running on well-established algorithms which provides the same facilities and amenities as the well-established coins, in fact better in some cases.
Take dogecoin for example it was made purely out of a meme that was quite popular in the year 2013, with the face of a Shiba Inu Dog, in contrast, Shiba Inu is itself a cryptocurrency that exploded recently. People are only investing in dogecoin and Shiba Inu because Elon musk believes in it and not because they do which is quite strange if you are making an investment for yourself. These cryptocurrencies are baseless considering the fact that they have no technology to back them up and unlike Ethereum and Cardano. So they will never become mainstream and an exchange of value.
4. HAS NO HISTORY
Unlike fiat, it has no history as such. Unlike the stock market which is more than a century old which has a deep history, the cryptos don’t have a history at all the first cryptocurrency ever made was on 3 January 2009 which was bitcoin but today they have flooded the market with uncountable altcoins.
History teaches us many things about the behavior of the market and how it would in different situations but the crypto doesn’t have any as compared to the stock market, this has made many legendary investors not believe in the revolution but some relatively young billionaires are appreciative of this apparently new technology like Elon Musk and Mark Cuban.
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The stock market has a proud history where many people lost and many people won, someone starting today can take clues from the mistakes both losers and winners made in order to make better financial decisions for himself but these things tend to be luxury in the crypto market because it has little to no history and they are a relatively very new thing that attracts new investors.
5. HAS NO PHYSICAL FORM
Unlike money, it is not present in physical form, still in today's world cash is the king no doubt about it but a slow and steady revolution has been going on which now people seem to understand and invest. This revolution has to do with the presence of no physical money rather a digital form should be put in place. People especially the middle and the lower class will have time to adjust to this ongoing revolution, usually, they are the ones who generally lack the financial knowledge and tend to react to money-making opportunities after the rich have made a ton of money from it.
People in financially poor countries still believe in cold hard cash and don’t believe in technology for their money. African countries don’t have the proper infrastructure to support digital wallets as they don’t have a proper internet connection which is a basic requirement for these crypto trades.
As a matter of fact, cryptos were made to have no physical form of any sort with zero government intervention, it was basically giving power from the government to the people making them the real player who controls the money.