Slowly but surely, cryptocurrency is taking over the imagination of the world. It has shown people the way to use their money to make more money. It may not be the most feasible option for your organization right about now, but with global companies like Amazon and Microsoft putting their weight behind it, you can rest assured that it is heading your way at top speed. As the concept is still novel, there is a halo of mist around its risks and benefits. A popular commentator on investments, traditional markets, commodities, and cryptocurrency, entrepreneur Jack Skipp helps us look at this phenomenon objectively.
Q1. According to you, what are the biggest benefit and the biggest drawback of cryptocurrency?
Mode-of-transaction is an ever-evolving concept. From barter to gold bars to paper money to plastic money to cryptocurrency; it is truly the next step in the life of exchange. Crypto is still in nascent stages. Needless to say, discoveries are being made every day, right from its benefits to its pitfalls. However, if I had to choose its biggest benefit, it would be the negligible processing fee that is required to keep and maintain a crypto account. Unlike traditional bank accounts that require an annual maintenance premium, crypto accounts do not ask for such a fee and when they do, it is comparatively nominal. That is primarily because crypto transactions are not facilitated by a single central authority. Instead, crypto pioneers have put into place a network of users who use a shared system of private keys and public ledgers to authenticate and record new and old transactions. This public network- blockchain operates without an intermediary or any central authority. In short, it simplifies your relationship with your money.
On the flip side, I’d say, crypto’s vulnerability to price volatility is one of its largest drawbacks and often what keeps people from taking it seriously or as a long-term option. As the value of cryptocurrency can change drastically in a very short time, leaving many in a financially vulnerable position.
Q2. In your opinion, what makes people want to experiment with cryptocurrency in the first place?
While its sheer novelty has made people sit up and take notice, I think convenience has been one of the more durable reasons for people to either experiment with crypto or take it as a serious mode of transactions. Although online banking had truly revolutionized the way transaction is done, crypto has taken it a notch higher by making it even faster, simpler, and less expensive. This can be best understood in the case of cross-border transactions. It’s like bringing down the shipping money of your shipment to almost nothing. Enhanced convenience is the added advantage.
Q3. What would be your message for those who are considering investing in bitcoins and other cryptocurrencies but are held back due to security concerns?
Well, I would ask them to think of crypto as an adventure and then remember that every adventure comes with its unique set of challenges. That said, security has been a place of constant improvement in the crypto-frat. They are experts in the tech domain who understand the online vista very well. So far, they have achieved tremendous results as far as transparency in a crypto transaction is concerned and even managed to keep counterfeit at bay. However, malware threats and fears of advanced hacking haunt their slow evolutionary steps. That said, experts are constantly on the lookout for new and improved online security measures.
Q4. What do you feel the future holds as far as cryptocurrency goes?
I think one can figure out the future in the answers I have given before. It seems to me that benefits outweigh the pitfalls. Sure, there are looming security concerns, doubts about anonymity, and price volatility. Yet none of it can dispute the fact that crypto is one of the most modern forms of transaction seen in the recent past. At times of any change, some people are beset with doubts, some are determined to break through and yet others choose to play both sides before deciding where they belong. As an individual, small or large business, you have to decide where you stand and why – when it comes to change in general and cryptocurrency specifically. That being said, I do feel that cryptocurrencies will become more common in the near future than what it is now.
That was Jack Skipps with his insights on what makes cryptocurrency yay or nay! You may love it or hate it but the time has come to accept that you can’t ignore it. And as Jack believes, “research and crypto-education can help you steer clear of doubts.”
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