If you are like most people, then you have probably heard a lot of talk and hype about “cryptocurrency.” Just in case you have not, and/or you are not familiar with this term, cryptocurrency is basically digital currency, such as the highly controversial bitcoin.
This is basically a new type of “money” that uses encryption techniques, other than legitimate cash, as a funding source. And, while cryptocurrency may be popular and much talked about in this day and age, it is not a completely secure method of buying and selling just yet, which is why you should be, at the very least, wary of it. This is not to say that you have to avoid it completely, but, before you buy into the hype, at least know and understand the potential negatives of using this currency- negatives that tend to be harder to find than the positives.
Wide Acceptance is a No Go
To start off with, one of the major disadvantages of cryptocurrency is the fact that it is not currently widely accepted, and it could potentially be years and years before it is…if it ever is.
Basically, when you deal in cryptocurrency, you are dealing in a currency that only a very small percentage of online merchants deal in and are willing to accept. This means that, for the average transaction, your “money” is no good.
Furthermore, there is also a lot of buzz surrounding the fact that, in the near future, cryptocurrency may be made illegal since this type of currency is “shady” in that it cannot easily be tracked.
While cryptocurrency is not currently illegal, there is a good chance that it will be in the future, and, even if it’s not, it’s still not something that can be used easily, which is why it is best to steer clear of it, at least until there are more regulations and more knowledge about how to safely use it, if safely using it is even possible!
In all likelihood, you are not a criminal. However, associating yourself with cryptocurrency could make you seem like one! Currently, cryptocurrency is very commonly being used in laundering and the creation and passing of counterfeit money. Making things worse, there are no regulations in place to guard against these crimes or to protect you.
This means that, at the very least, you are opening yourself up to looking like a criminal by using cryptocurrency, so if you don’t want people poking into your finances, it is probably best to steer clear at this point. Furthermore, you do not have any protection against criminals who want to manipulate and use you when you use cryptocurrency, which is a very likely possibility.
The bottom line is that cryptocurrency is not safe just yet, so, no matter what you hear, don’t buy into the hype or expose yourself to risk…at least not until more information is available.