Cryptocurrency has undoubtedly attracted the interest of investors globally. But still, its concept is perplexing to a huge section of people. A few reasons for this can be its complex blockchain Technology or decentralization. The current scenario indicates that invoking the masses’ confidence will yet take a long time. As every coin has two sides, Cryptocurrency also has both merits and demerits.

On the one hand, it has some outstanding benefits such as cost-effectiveness, quick transaction, self-governing, decentralized, smooth currency exchange, secure & private and protection from inflation. Still, on the other hand, it also carries a few undeniable limitations which restrict its scope. By reading this article, you will gain information about the demerits of cryptocurrencies.

1. Unregulated: It doesn’t allow the interference of a regulatory or supervisory central authority, making it unsustainable and non-promising. A few experts even predict that it will collapse in the future due to the absence of a regulatory body.
2. No inherent value and price volatility: Price volatility and the absence of inherent value are huge limitations of cryptocurrency. It is not linked to any valuable assets, and this makes it volatile. It gets hard to earn people’s confidence in the absence of an inherent value.
3. Not scalable: Cryptocurrencies are challenging to scale. Although the number of digital coins and adoption is increasing rapidly, it is still limited by the number of transactions that takes place each day. Furthermore, the speed of a transaction is also an essential aspect that cryptocurrencies cannot compete with until the infrastructure delivering these technologies is massively scaled.
4. Cybersecurity issues: Since cryptocurrency is based on digital technology, it is prone to cybersecurity breaches and hackers. There have been cases where multiple ICOs got breached, and investors incurred huge losses.
5. Keeping up with the changing technology: The digital technology on which the cryptocurrency is based will keep changing. But, changing the technology related to cryptocurrency will be very hard because it will be a tedious process and will involve a considerable amount of time.

This article does not intend to discourage the usage of cryptocurrency. But, you should be aware of its demerits so that you can make a well-informed and wise decision. It is also suggested that you do not invest all your hard-earned money into cryptocurrency and keep your portfolio diversified. Take guidance from a professional before investing in cryptocurrencies to attain maximum benefits.

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