Cryptocurrency: Gaining Popularity and Concerns on Cybersecurity

Misconceptions on Cryptocurrency:

Although Cryptocurrency is gaining popularity, there are many misconceptions and miseducation on Cryptocurrency that scare off many potential consumers. The most common myth is that Cryptocurrency is only used by money launderers. But in fact, Cryptocurrency has shown its potential to solve traditional banking problems. According to Tony Lees, the Chief Product Officer at Cryptocurrency platform Wirex which has 4.5 million users all over the world, “a common misconception around cryptocurrency is that it is overly complicated. But that doesn’t need to be the case when it comes to payments, which is why spending cryptocurrency at the point of sale is crucial. It means that anyone can hold crypto and spend it without having to worry about keeping up with conversion rates or going through the process of manually exchanging crypto themselves.” This is one of the most important qualities that Cryptocurrency has over the traditional banking methods.

Also from Tony Lees, “there are huge benefits to crypto payments, namely lower fees, faster payments as well as making cross-border payments much easier and cheaper, making them a hugely important alternative to traditional finance.” As he said, the users of Cryptocurrency are growing exponentially, especially in 2022. There is a trend of accelerating the use of Cryptocurrency – the world is becoming cashless with more usage of electronic payments. Cryptocurrency will be more and more important with the advantage of faster and lower cost of transactions. 

Concerns on Cyber Security

While Cryptocurrency is becoming more and more accepted by the public, cyber security is always a big controversy in the decentralized asset industry. Consumers are most concerned with the volatility and secondly the safety and also the reliability of the trading platforms. It is very important to trade on platforms that are licensed and regulated. According to Better Business Bureau, it reported in 2021, Cryptocurrency scams were ranked as the second-riskiest type in 2021. Blockchain is considered as “unhackable” while many endpoint trading platforms’ are way less secure compared to Blockchain. The third party vendors’ security is comparably weaker which gives the hackers chances to steal money. Now, many of the trading platforms recognize this issue and are building stronger cloud infrastructures to protect the data and consumers’ privacy. 

Conclusion:

Technology has long been a tool that people use to make life easier and improve living conditions. Cryptocurrency will allow people to build a more open financial system and is now used by many governments in cross-border transactions, for example Singapore is using Cryptocurrency as part of the national economy. The trend of adopting Cryptocurrency is now very popular and will be more and more adopted by the mainstream in the near future. 

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