Several issues are rising concerning digital currencies. People have argued against it while others argue for the betterment of crypto. Decentralization and un regulation by the government are the factors that account most for the growth and development of cryptocurrency. People who have not yet gotten a plight on how the crypto operates still feel that these factors make the digital currency prone to theft and not safe for investment not understanding that un regulation by the government is not illegalization. Several factors account for the positive shift of cryptocurrency while a few still need to be addressed to make crypto the future gold. Some factors are technology, decentralization, institutional adoption, and misconceptions of the bitcoin-like being seen as a room for speculators as well as its fixed supply being seen as an issue in trading.
Technology has played a great role in placing the digital currency market where they are. It is because of the developments in technology that digital currencies have come to exist. Surely digital currencies are transacted online through a medium of the internet and therefore this is only possible with the availability of the internet. It has enabled digital wallets through which digital currency is stored. It is the only trend that can make it possible for crypto to grow higher day in and day out.
The digital currency is not centralized like the fiat currencies, therefore, it is easily accessed and transactions in the digital market are quicker as compared to those in the traditional market, this has motivated many investors who seek ease trading platforms. De-centralization is a factor that is enabling people in third world countries to join the digital market and develop themselves to uplift themselves from poverty and place them in a better position.
Institutions are adopting digital currencies to be able to operate unlimitedly. Most institutions only accept payments in fiat form and this limitation limits them from getting benefits for some people can only make payments through the digital currencies and when it is not accepted in a certain institution then it becomes a limiting factor. To avoid limiting people who need to join the institutions and make their payments via digital platforms then most countries in Africa have adopted digital currencies.
However, there have been misconceptions about bitcoin and people feel that investing in the digital currency market is risky. Bitcoin has no liquidity and is not universally accepted some countries like Nigeria ban its usage. This scares away investors because this fact makes it lack trust for them to store their value because they feel it’s risky and they might incur losses. Existing in fixed supply has been seen as a protection value but it is misperceived to be not money. The fiat currencies keep on being manufactured and the fact that there is a fixed number of bitcoins then the currency is seen as not money.
In conclusion, issues regarding the digital currencies are upcoming some positive while others are negative, and to ensure that the crypto develops more and gets accepted by many then all issues should be addressed clearly to give people hope and trust in the digital currency market.
