All current cryptocurrencies are risky and unsecured. The issues are relating to the poor of management, lack of supporting, technology limitation, equality, security supervision and complexity. Some people are exchanging them for criminal activity and money laundering! Stay away from the troubles and avoid them!
1. Cryptocurrency has no real value! It has a value only when somebody are willing to pay a price for it. In that case, it is like an antique. It has not had a fixed value. But in real world an antique has a value because you can see it. It is a real artwork and has the ability to decorate a space that it occupies. Cryptocurrency doesn’t have these functions.
2. Cryptocurrency does not have a stability on price by any governments. Without stability, a currency does not work. Fiat money is managed by the government. Its central bank can go into the international monetary markets to perform “market operations", which is to buy or sell their national currencies in order to keep them stable. cryptocurrency s volatility makes it a terrible currency. If you know that you could lose up to 50% of investment after you purchase the cryptocurrency then you will not think it is a good investment!
3. Cryptocurrency is an enemy of national currency. Will any country cancel its currency and just use cryptocurrency which no one can control? The answer is no because this would be fatal to their monetary systems! Also, cryptocurrency will be less attractive when fiat money becomes fully digital.
4. No government will take its responsibility for the trading of cryptocurrency There is no regulations for cryptocurrency . Anything happens in cryptocurrency trading that is not regulated by law! The consumer’s rights are not protected!
5. Investing in cryptocurrency is not like the investment in technology company. cryptocurrency is not like a startup. You bought a tech company stock you will get return when the company grows up! But, cryptocurrency is a currency and it is not a technology company!
6. It has a software security issue. The cryptocurrency is created by a software! But, none of a software is perfect in this world! It must have a bug or a flaunt somewhere. If a hacker finds the security hole then the entire cryptocurrency technology will be in a disaster because investors will lose all their money within a second!
7. It is likely involving in Money Laundry and Criminal Activities internationally! - it becomes a tool for criminals !!!
8. Authoritarian nations may use them as a workaround way to avoid the international sanctions! eg. North Korea!!!