Crypto risk and gain
Over the last few years market has given a lucrative return on investment on Cryptocurrencies like Bitcoin, Ethereum, ripple etc. The amateur investors became millionaire overt night has created it a center of attraction for the market enthusiast. The cryptocurrency has the immense possibility to grow not only as an investment medium but also it can become an alternative to the traditional currencies.
The government of various countries has started to accept it as a legal tender, this has also increased the interest among the common people. The acceptance of bitcoin by the various big business house has also added to its boom. The growth of digital currencies was no path of roses but it has faced many ups and downs, there have been more losses than gains in this journey to the success. the volatility of the market can be understood from this growth curve. For instance bitcoin, the king of the market was leading in $20,000 last December but its value came down to $7000 at the beginning of the February this year, it is not the story of Bitcoin alone but the scenario is similar for other Cryptocurrencies as well.
Seeing this downward trend in the market any of the leading banks have restricted their customers from using credit cards too but Cryptocurrencies. Many developing nations are framing strict laws to the use of Cryptocurrencies. With every new invention comes to risk and reward so one should be very careful before accepting this new technology into the business.
Accepting digital currencies into the business gives many advantages including lesser transaction fees, fewer chances of fraud, more transparency etc. But it adds some challenges that need to be solved before adding it to the business. The volatility of the market is a big concern for the business to accept it as a mode of payment. But before accepting it as a payment mode one should comply with KYC and Anti Money Laundering regulations.
The technologies used behind these Cryptocurrencies like a private key or smart contract have the chances of getting hacked, in January this one of the big exchange got hacked and more than $500 million cryptocurrencies got stolen. Despite the hacking risk people are still interested in trading these Cryptocurrencies, so the companies want their customers to use hardware wallets and cold storage wallets for the safety and security of their funds. See this review for more information.