1.1.0. The Shortcomings of Cryptocurrencies
Every system created by humans does have shortcomings. The following are the shortcomings of cryptocurrencies:
1. Scams
Because cryptos are digital, some dishonest people keep looking for ways to hack into the safety codes built into cryptocurrencies. As such, as mentioned above, scammers have swarmed the crypto industry searching for ways to deceive gullible people and illegally make fast financial gains.
The solution to this is to become acquainted with the Crypto Market, which is one of the reasons for the School of Cryptocurrencies.
2. Illegal Financial Transaction
Due to its privacy and anonymous nature, some unscrupulous people use cryptocurrencies to financially empower their illegal activities. There has been rumors of money laundering and terrorists utilizing cryptos to raise funds for their illegal activities.
However, this is not just a problem with cryptocurrencies. A huge amount of fiat currencies are used regularly to further terrorism around the world.
3. Volatility of Price Movements
The Crypto Market is still very young, hence, any slight sentimental or fundamental news does shake the price movements of the market, causing temporal losses or gains. But if you can be patient, you will end up recovering any losses and gain far much more.
The good news is that the Crypto Market is growing rapidly and the market capitalization has exceeded 1.5 trillion dollars as at the writing of this manuscript. Volatility of price movements reduces as more and more people get involved in the Crypto Market and the market capitalization gets bigger.