Why are cryptocurrencies negative?
Digital currencies of the future. This is what their enthusiasts define cryptocurrencies. In common perception, however, they have pejorative and strongly negative associations. What are the main reasons for this and are these stereotypes right? Today we will try to introduce you to this topic and answer the question whether cryptocurrencies are a technology of the future or are they mainly a tool used in the criminal world?
Cryptocurrencies – a tool of criminals or a technology of the future?
Bitcoin and other cryptocurrencies have long been associated with crime. For good reason. The inherent features of this technology, i.e. their anonymity and encryption, made them widely used in the Darknet to pay for weapons or other illegal items / services. Unfortunately, Bitcoin, which was supposed to give us financial freedom and the ability to choose between fiat and digital money, has become a tool of criminals. This can, in a way, be compared to using a knife. For a normal user, it will be used for cutting and spreading bread, and for a murderer it can be a murder weapon.
Such use of Bitcoin in the early years of its existence meant that cryptocurrencies are negatively associated with crime to this day. The second aspect that cast a shadow on the perception of encrypted electronic currencies was the issue of extorting money through the so-called ICO (Initial Coin Offering). Especially in the years 2016-2018, many projects were created that aimed only at collecting funds from investors, and then stopped being supported by the creators faster or slower.
A good example is the Game Credits project, which has gained considerable popularity due to the fact that it was offered by the cryptocurrency exchange BitBay (now Zonda). Ultimately, it turned out to be a fraud, i.e. a scam abandoned by the creators. Today, admittedly, it continues to operate after being taken over by another team, but it has never returned to its price and value from a few years ago.
Cryptocurrency exchanges and their spectacular falls
Another issue why encrypted electronic currencies, i.e. cryptocurrencies, have a bad association are numerous falls and hacker attacks. The most famous was the collapse of one of the first Bitcoin exchanges – MT.Gox. And the most famous hacker attacks include BiMart or Bifinex. Others that had similar problems can be listed for a long time. One Coin, Zaif or Quadriga, KuCoin, Pancake Bunny, Thodex or Wormhole. In our home backyard, the cryptocurrency exchange Bitmarket, which disappeared from the market along with the users’ money, had the most spectacular fall. All this means that investing in cryptocurrencies should be treated with special care. Not every cryptocurrency or cryptocurrency exchange will survive in this market. The situation was similar when the Polish cryptocurrency exchange Coinroom collapsed.
Blockchain – the technology of the future
The creation of cryptocurrencies and tokens would not be possible without the dynamic development of blockchain technology. It is thanks to it that it is possible to create encrypted, anonymous, digital projects that have their value and price. Although the technology itself was known before, its first serious use took place when creating the first cryptocurrency, i.e. Bitcoin. Since 2009, thousands of very different projects have been created based on blockchain. Some were simple scams and frauds, but others are developing more and more dynamically from year to year. The most recent and most popular projects include Terra Luna, Avalanche, Solana and Polkadot. Will they replace the older and most famous ones, such as Litecoin, Ethereum or Ripple? In the case of Litecoin, it has been losing its value and importance recently. The other oldest projects, such as Ether or XRP, are holding up very well and are still at the forefront of cryptocurrency capitalization.
Which cryptocurrency exchange is the most stable?
Certainly the oldest and largest platform for trading and exchanging digital currencies is Zonda (formerly BitBay). We can also choose from several other platforms, such as Binance cryptocurrency exchange, which is one of the largest in the world, next to Coinbase. So the choice is considerable. Be careful investing in this market, as we have already written, it can be very risky. This market and the blockchain technology itself, on which cryptocurrencies are based, is constantly evolving. As a rule, this technology has many significant advantages, however, one should remember about the numerous risks that this market hides. Stereotypically, cryptocurrencies are negatively associated, but this is not entirely a correct assessment in our opinion.