Cryptocurrency: Pros and Cons

Hello I’m Mike, and I’m NotYourAverageMillennial….

In today’s article I will be discussing the good and the bad of cryptocurrencies and blockchain technology. The point of this website is to explore all possible alternatives that will lead us to liberty. However, I am not trying to sell you or urge you to take advantage of cryptocurrency or the blockchain technology. This article will touch on the following:

  • What is cryptocurrency and blockchain technology
  • The pros of cryptocurrency and blockchain
  • The cons of cryptocurrency and blockchain

Cryptocurrency and Blockchain: A Crash Course

Cryptocurrency, according to dictionary.com is:

” a digital currency in which encryption techniques to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.”

Cryptocurrencies make used of blockchain technology. This now leads us to ask : What is blockchain technology? The best way to answer this question is to quote authors Don and Alex Tapscott:

” The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value”

This is how cryptocurrency and blockchain works hand in hand: An individual downloads a cryptocurrency wallet which consists of two keys, a public key and a private key. They are both used to encrypt and decrypt data within the blockchain.

The public key can be shared with everyone, while the private key is kept secret. The private key is how someone who receive their cryptocurrency is order to make use of it.

Cryptocurrency Positives

Cryptocurrency has great potential and some enticing benefits.

First, the blockchain technology is decentralized. This is quite the benefit for someone who is trying to break away from using the centralized banking system. There is a quote that was said by Mayer Amschel Rothschild:

“Let me control and issue a nation’s money, and I care not who writes the laws.”

This quote applies to the financial system today. The money supply of American, Britain, and Canada are all under centralized control of the International Monetary Fund. On top of that, they are fiat currencies back by nothing of true value. Better stated, they are backed by military force. Not really a good way to do business.

With cryptocurrency you are basically your own bank and you control your own money supply through the P2P (peer-to-peer) blockchain technology.

Second, blockchain and cryptocurrency is available to everyone. All you need is a digital wallet and some cryptocurrency and you are good to go. The blockchain technology makes use of something called “smart contracts” where two people can deal with each other rather than a third party. No middleman involved.

Third, cryptocurrency protects against fraud. There is a limited amount of cryptocurrency that can be created so the money supply can’t be inflated like the U.S. dollar, or any other cryptocurrency for that matter. It also cannot be counterfeited. This is also a huge plus.

Fourth, this is a good way to take your wealth with you no matter which country you choose to relocate to. This eliminates the need for off-shore bank accounts or the red tape involved in order to transfer you wealth to another country can be an absolute headache. All you need is a cell phone/laptop/tablet and an internet connection and you can take your wealth with you.

Cryptocurrency Negatives

Now I don’t think I would be fair if I didn’t touch on some downsides of cryptocurrency. Just to reiterate, this is not about urging you to get cryptocurrency, but rather to educate you on it so that you can make an informed decision on whether you would like to go this route.

First, cryptocurrencies aren’t mainstream yet. There are still so many people who are not caught up or those who may be aware of cryptocurrency but have not yet fully embraced the idea. It will still need some time to fully catch on be acceptable to the public. Also, most retailers and businesses do not accept cryptocurrency which does not give you a lot of options as far as purchasing goods and services.

Second, if the electricity goes out and you have no access to internet service, your cryptocurrency becomes useless.

Third, government agencies are labeling it as a form of money laundering. This would give governments a reason to heavily regulate or even outlaw the use of cryptocurrencies in the name of “financial security”. They may even go as far as to call cryptocurrencies “financial terrorism”. This may sound preposterous, but keep in mind that governments are known to go to any measures to maintain its control, specifically financial control.

Fourth, cryptocurrency, in also honesty can be considered a fiat currency. Just like the U.S. dollar, it is not really backed by anything of value. To add to this, the first cryptocurrency (Bitcoin) was started by someone with the alias Satoshi Nakamoto. Apparently, no one knows who this person is which may caused people not to have too much confidence in Bitcoin.

Finally, some people believe that cryptocurrencies are leading up to a one world currency. If you are a religious person this may give you some pause. After all, if cryptocurrencies do become of interest to more and more people, cash will be done away with. This may alert the religious minded to a “mark of the beast” situation. Of course if you are not religious (or do not subscribe to the one world currency conspiracy) this may not apply to you.

Crypto-conclusion

I hope that I have given you some food for thought regarding cryptocurrency and blockchain technology. I myself am by no means an expert on it. I do see the value that it could provide if it were to be accepted on a wider scale. And the potential of a currency that is not controlled by the banking cartel makes it worth considering. In the end, the decision falls on you because individual liberty is all about doing what you feel is right and what works for you provided that you do not hinder anyone else’s liberty.

In my opinion I would highly recommend investing in at least a small amount of cryptocurrency.

#LIVE4LIBERTY

18 thoughts on “Cryptocurrency: Pros and Cons

  1. Hello Mike;
    First of all, this is very interesting, if it takes off. I have heard of many Crypto-currencies, not just bitcoin. Is this true? If so, what would be the best one to invest in. Wishing you the best in all of your endeavors with Crypto-currencies.

    Bill

    1. Yes there are actually a wide variety of cryptocurrencies besides bitcoin. There is also ethereum, steem, litecoin, ripple, and many more. A good place to get info on the wide variety of cryptocurrency would be here:

      http://www.coinmarketcap.com

      It gives info one all the current currencies, their rankings and the value of them.

      Hope this helps!

  2. Hi Mikey, this was a very interesting introduction and review. I would interesting to know how the usual transactions can be carried out using cryptocurrancies. How can a person actually use the currency to make a purchase of materials. There seems to be some information on the internet about crytocurrancies gaining significant value. How does this work.

    1. Good question Ron. It depends on if a certain company accepts cryptocurrency. The good news is that depending on the cryptocurrency’s value, it can be converted into real currency, such as U.S. dollars in order to make everyday purchases. For example, companies that do accept cryptocurrency as payment are Overstock.com, PayPal, Microsoft, Expedia, Shopify, Pizzaforcoins, Subway, Tesla, Virgin Galactic, Zynga, and Mint.com, just to name a few. I do believe that more companies may be open to accept cryptocurrency down the line.

  3. Leigh

    I am such a novice when it comes to cryptocurrency and your site really makes it easy to understand. I appreciate the information you give and will keep coming back for more from your site. I’m also sharing it with my extended family who are interested. They will be happy to have a summary of this subject matter to refer to over and over again.

    1. Mikey Somersall

      Hello Leigh! Yes I am certainly no expert when it comes to cryptocurrency myself so my suggestion to yo is to do what I did and that is to learn little by little about blockchain and cryptocurrency. There are some YouTube videos that will break down the technology in simple terms. Then if you are convinced that this could be beneficial then invest in a small amount. Hope that was helpful. Thanks for the comment!

  4. Hi Mike,
    I have been bit obsessed with investing in bitcoin and Its great to come across your website before i make my mind.

    Thanks

    1. Hello Nasrulla! I would suggest investing in a little bit of bitcoin because it is high priced although the cost has went down a little so even investing in 0.01 bitcoin wouldn’t cause you to lose your shirt. Then if it turns out the value goes up then you can make your money back and then some. But even if bitcoin is too much to invest in, there are other cryptos like litecoin, altcoin, ethereum, ripple, zcash, and steem. Do some research on some other cryptos and see which one you would be more comfortable to put your money into. Thanks for the comment!

  5. Chris

    Hey Mike! Great post. I hold a few fractions of a bitcoin, some etherium and some litecoin. I know, these are basically the three big players out there, but I know there are many more. What is your recommondation for a good platform to trade less known cryptos like Ripple, for example?

    Cheers,
    chris

    1. Mikey Somersall

      Way to plan smart Chris! You are further ahead in the game than most people are. Actually CEX-IO will let you trade for some Ripple (XRP) as well. Some other ones include Stellar (XLM). Hope that helps. Also STEEM is another one that seems to be catching fire. Thanks for the comment!

  6. Furkan

    My father wants to start it but as you said it is not mainstream yet. So he is quite hesitant to start it. I started it but I could not make him start. I hope I can start to earn more and help him start or if I can’t, maybe this article will change his mind.
    Do you have any other sources which you have or trust? Maybe they can help as well.

    1. Mikey Somersall

      Hello Furkan! i suggest he does some independent research and learn as much as he can about which cryptocurrencies he would like to invest in. I would also suggest that he start small (maybe 0.01 bitcoin) which would be a $96.25. Or maybe invest in one litecoin, which is $161.44 as of right now. You can probably get started at CEX-IO which is a good site for trading cryptocurrencies. I hope this helps! Thanks for the comment!

  7. Erick

    That’s an absolute advantage with cryptocurrencies that you can transfer from country to country without worrying about transferring monetary value and exchanging with 3rd parties to move your wealth with ease. However, everything has its pro and cons just like our economy obviously. Cryptocurrency its pretty young yet to be trusted but it has a good amount of potential.

    1. Mikey Somersall

      Yes Erick. There is certainly a good and bad side to it. The best advice that I think anyone can offer as far as cryptocurrencies is to invest a small amount that will not cause you to lose your shirt. The potential is there like you said and as it catch fire I think more companies will accept it as payment. Thanks for the comment!

  8. Cem Ozturk

    Great read about cryptocurrencies. There’s certainly a lot of noise in the crypto world (especially bitcoin)

    It’s hard to explain to someone what blockchain is so thank you for the clarification. Whilst I do agree that the blockchain technology (and cryptocurrencies) are here to stay, it still has a long way to go for Maturity.

    The market conditions are still volatile and most retailers still do not accept this form of payment.

    1. Mikey Somersall

      Yes Cem. The good news is that since cryptocurrencies is familiar with less people it may be the best time to invest before it becomes mainstream. But everyone should do research before the decide to invest. I know some people who feel learning about blockchain is too complicated so they never take the time to do their homework on it. But the penalty for that is being left behind in something that has the potential to make you some money. Thanks for the comment!

  9. Sunny

    I’ve been reading about bitcoin and cryptocurrencies for the past year and it still can be confusing, so it’s nice to see it laid out a little clearer. My husband put about $50 into bitcoin last year and turned it into $250 which he used to buy a VR system online. There are some retailers starting to take it. I heard a rumor that Amazon may be considering taking it in the future. Do you think that’s realistic?

    1. Mikey Somersall

      Hello Sunny. I can understand your confusion on this as I am still learning myself. I’m also curious to know around when last year did he put in for Bitcoin. The reason why I ask is that the lowest price on record for Bitcoin in 2017 was about $956. So I would say that would be approximately 0.06 BTC which today would be worth over $570 USD which means about an increase of 1140{de1724e584064e363723d4aed123ef967e24196cdfa4db13556f4d3514e5e174} in profit. Not too shabby. Retailers like Overstock, Microsoft, Virgin Galactic, Tesla, Shopify, Expedia, and Dish Network accept Bitcoin as payment. As far as Amazon accepting cryptocurrencies, it wouldn’t surprise me if they did. Quite frankly I’m surprised that they weren’t one of the first companies to accept it. Thanks for the comment!

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