Several people have raised concerns about this technology since the emergence of the first cryptocurrency, Bitcoin. Unlike its blockchain parent technology, cryptocurrencies have prompted many, if not outright, to try their alienation. In the fight against these digital currencies, financial sectors and governments around the globe are at the frontier. While steps can be enforced for different reasons, fear is the underlying factor. So, why are people afraid of cryptocurrencies, and how do we make them feel comfortable? Let’s know about it in detail below.
Lack of Understanding
The concept of digital money appeared to be far-fetched at first. People didn’t understand how virtual money they could transact. Moreover, how could they use this money when currencies are not issued and regulated by any system or government?
Lack of understanding has prompted some governments to pursue specialist resources in this space in the hope of helping their people understand the technology before they spend all their property.
Zero Legal Tender
No central bank issues cryptocurrencies. Rather, they are smart contracts that are decentralized. As a result, they were not recognized as legal tenders. Cryptocurrencies ‘ legality raises fears in different circles, especially some governments that are afraid that if this system fails, it will take big economies down.
Disrupting the flow of money to criminals. Typically, there is no perfect way to solve this permanently, but regulatory measures that can bring cryptocurrencies into line with existing anti-money laundering legislation and possibly counter-terrorist financing legislation will definitely control illicit transactions.
Online digital currencies are available, making them vulnerable to hackers. Keeping money safe online isn’t an easy job for some people, especially those who don’t understand how crypto wallets and exchanges work.
What’s the solution? First, by backing up their wallets, crypto owners need to secure their private key. (When you lose your private key, you lose access to your money.) Second, choose cryptocurrency exchange platforms such as Coinbase, Poloniex or Kraken that provide exceptional security measures and address key security challenges.
Too Many to Choose From
Over the years, there has been a huge increase in the number of digital currencies (unlike when Ethereum and Bitcoin likes were the only recognized coins). Ironically, there are still more projects going on, although the industry has seen many collapse immediately after their release, giving investors a strong reason to worry and creating more confusion.
The key to ensuring that you know the right cryptocurrency to invest in is deep research. Meanwhile, without understanding its potential, don’t invest in any crypto project. Be clever!