Cryptocurrency is a virtual or digital currency that employs cryptography for security. Due to this security feature, it is very hard to counterfeit this type of currency. One of the most notable traits of cryptocurrency is the organic nature of it. Since it is not issued by any central authority it is free from government interference or manipulation. Bitcoin is the most popular cryptocurrency till date.
Pros of cryptocurrency :
- It is a lot easier to transfer funds between two parties through cryptocurrency with minimal processing fees
- In case of Bitcoin,the block chain is used to store an online record of all the transactions that have been made through Bitcoins and it provides a data structure for this record that has the minimal threat from hackers and can be copied across all computers that have a running Bitcoin software.
Cons of cryptocurrency :
- Since cryptocurrencies do not have a central repository, a virtual cryptocurrency balance can be lost in a computer crash if a backup copy of the holdings does not exist.
- However minimal, cryptocurrencies are still at the risk of getting hacked. In the short existence of Bitcoin, the company has seen almost 40 cases of theft.