We all know the benefits of getting into cryptocurrency. It’s a modern way of trading money, which is all digital, can’t be counterfeited and doesn’t rely on a central bank. Investing in cryptocurrency can see substantial returns. But is it a sound investment?
The gaming industry has been reserved on the use of cryptocurrency. Although there are brands that have adopted the new currency, it has been quite noticeable that several established names have not. Even mFortune who are renowned for bingo and being highly innovative, have not incorporated this tech to date. In fact, even the popular Fortnite creator, Epic Games, appeared to embrace it, accepting Monero payments for its merchandise store. However, this was quickly reversed, and CEO Tim Sweeney explained it was a mistake made by a payment partner, saying volatility and fraud need to be addressed in the crypto world before it will be embraced. So, is it a gamble?
Cryptocurrencies Can be Volatile
Cryptocurrency is volatile and it may lose its value, and this puts a lot of companies off accepting it as a form of payment. There are many stories of those who invested in cryptocurrency like Bitcoin in the early days and turned dollars into thousands, but there are just as many who invested in cryptocurrency at a later date and saw big losses on their investment. Cryptocurrency value can plummet thousands in one day.
Not Widely Accepted
Cryptocurrency isn’t accepted as legal tender by the United States government. Cryptocurrency has only been legalised in a few countries. Most websites and companies don’t accept it as a form of payment either, meaning that it isn’t practical to use on a regular basis. It is therefore a risk to invest in something if you aren’t sure it will be accepted in most places.
Payments Can’t be Reversed
If you pay somebody accidentally using cryptocurrency, your chances of getting this back are probably not going to be very good. There is no regulation in place to ensure that everyone is covered if one accidentally transfers cryptocurrency to someone. This means that if anyone does this, you are relying on the good faith of the person you have sent the money to return it, but they can turn down this request.
Your Money is Lost if You Forget Your Passwords
Imagine if banks didn’t exist, and we held all our money in our wallet. If we lost our wallet, we aren’t going to get it back, or the money. This is the same with cryptocurrency. Therefore, if you store money in digital currency on any device, there is a real risk of losing your virtual wallet and all the money therein; if you forget your passwords or lose the device. Furthermore, there is no legal or technical assistance available to help you get this back.
In conclusion, whilst investing in cryptocurrency has proven successful to some individuals, it is a high-risk volatile investment to get involved with, meaning it is certainly a gamble. The cons outweigh the pros. So that anybody considering investing in cryptocurrency needs to consider a few important aspects. The chances of seeing no return on their investment, what the practical wide usage of the cryptocurrency will be, and the security concerns regarding a lack of payment reversals and account recoveries.