It is not common for a facility to have a strength and a weakness in common, but there is one item in our society that shares a common trait that’s both a positive and a negative.
The greatest strength of using a cryptocurrency is that it is not controlled by any government or bank and the “people” are in control.
A transaction can occur that transfers value from one individual to another with no intermediary required.
The greatest weakness of using a cryptocurrency is that it is not controlled by any government or bank and value can transfer from one individual to another with no pesky government regulations in the way.
It would seem somewhat like having your cake and eating it too!
As much as no government controls a cryptocurrency, governments can still have influence.
China has just declared all transactions illegal, effectively banning the use of all digital tokens, including Bitcoin.
Based on this announcement alone, Bitcoin dropped in value by more than $US2000.
China has also made it illegal to mine cryptocurrencies.
At the end of 2019, China accounted for 75 per cent of the Bitcoin energy use in the world as miners took advantage of low electricity costs and cheap hardware.
Is this potentially the beginning of the end for cryptocurrencies?
It may be too early to call it that way, but some infamous scams have certainly rocked the confidence of people who want to invest in cryptocurrencies.
Ponzi schemes and scammers
Undoubtedly the biggest was OneCoin. Dr Ruja Ignatova told…