There has been a lot of speculation around whether cryptocurrency is safe to use or whether it will be a bad investment. Recently a debut developed between cryptocurrency investors and the business giants of the world. Just like every other debut, it has two sides to the story, pro-cryptocurrency or against-cryptocurrency.
As you know, Cryptocurrency can be used for basically anything. This is how Lady Mone recently launched a major property development in Dubai. She believes that digital currency is a growing market that cannot be ignored.
Meanwhile, a property developer in London is allowing tenants to pay deposits in Bitcoin’s.
Yann Quelenn, analyst for Swissquote, says that cryptocurrency still holds great potential. He said that this could be a potential safe haven. Less than 0.01% of the world’s population is in possession of a Bitcoin wallet. He believes that if this number is to reach 1%, the demand for bitcoin’s would be through the roof, since there are only 18 million coins available.
In short, the pros for cryptocurrency are:
1. Cryptocurrency can be used to pay for anything.
2. It is a growing market with the potential for success.
3. The demand for digital money would skyrocket if the percentage of Bitcoin wallet holders reached 1%.
Looking at these pros, one might think that cryptocurrency will indeed make for a good investment; however, there are a few people out there who think cryptocurrency is just one big fraudulent scam.
According to Jamie Dimon, digital currency is only fit for drug dealers and murderers. He believes that Bitcoin is a scam that will blow up.
The boss of America’s biggest bank said that this currency would not work. He said that people could not create a currency out of thin air. He also stated that he would immediately fire anyone who invests in cryptocurrency, as it is against their rules. And the person who invests in cryptocurrency is very stupid, and both of these are very dangerous.
Bitcoin emerged after a financial crisis. It allows you to bypass banks and traditional payment processes, creating a bigger risk of financial loss. Financial institutions are concerned about Bitcoin’s association with money laundering and online crime.
After Dimon’s comments, Bitcoin’s value fell by 5%. He predicts anyone who is investing in this digital currency will for a fact lose their stakes.
In short, the cons are:
1. America’s biggest bank does not believe cryptocurrency will be a success.
2. It bypasses banks and traditional ways of payment. Creating a bigger risk for financial loss.
3. It was previously associated with money laundering and online crime.
These arguments come from a very personal view on both sides. But will anybody ever be able to predict the outcome of a situation 100% to the mark? Cryptocurrency is new to the world and is at war with fiat money. Central banks are keen on preserving their monopoly on paper money and they will not give up without a fight.