Cryptocurrency Risk

If you follow my blogs, you may have realized I’m not a believer in cryptocurrency because tokens are not real money like dollars, pounds, etc. The market is very volatile which means it is a risky business to invest. There are thousands of crypto funds which when you come to think about it mean that there will be so many options that it will be impossible to guarantee acceptance.

It doesn’t take a lot of research to see that there are many skeptical people around the globe. Often, it’s because their gut is telling them so, but if you think about it what are the chances that cryptocurrency will replace conventional currency. Unless there is martial law then it comes down to who wants it, and who is prepared to receive it as payment. In other words, as an unregulated digital currency; experienced traders cash in on it, then corrupt tricksters (criminals), and tax embezzlers profit exponentially.  

Will cryptocurrency take over cash?

While more companies have started accepting cryptocurrency as a form of payment, bitcoin is unlikely to replace the dollar any time soon. Even if every consumer and business had access to it — which they currently don't — bitcoin's unstable value makes it hard to imagine as a widespread medium of exchange.

3rd March, 2025 - New Nation Now

Cryptocurrencies are rapidly gaining more popularity, but it will be a while before they can replace traditional finance in our daily life tasks, according to experts.

2nd May, 2025 - The National News

Will crypto be around in 10 years?

Bitcoin is most likely to remain popular with cryptocurrency speculators over the next decade. Bitcoin, the blockchain, will probably continue to be developed to address long-standing issues like scalability and security.

Investopedia

Will digital currency replace paper money?

As of yet, there is no definitive answer as to whether digital currency will replace money someday. The outcome bears on many factors including technological advancements, regulatory decisions, public acceptance, levels of digital literacy, and more.

5th September, 2024 Forum Pay

Don’t get me wrong; of course, investors might make substantial returns on their investment. But at the same time, they could lose a lot of money because at the end of the day they are betting on what could or might not be. Just like spread betting or gambling in a casino, the house always wins. And then of course there are scammers and hackers.

In March 2022, the largest cryptocurrency theft of the year, US$625 million in ether and USD coin was stolen from the Ronin Network. Hacked nodes were finally discovered when a user reported being unable to withdraw funds.

Wikipedia

Crypto is one of those schemes where hackers tap into as it’s so vulnerable. Check out 10 hacks carried out in the past. These are just a few of the scams out there. There are plenty more.

Korean Kwon developed, TerraUSD, suffered a spectacular collapse. Their meltdowns had a domino effect on the rest of the cryptocurrency market, tanking the price of Bitcoin and accelerating the loss of $300 billion in value across the crypto economy.

22nd June, 2023 - The New York Times

A South Korean man (Kwon) accused of being responsible for a cryptocurrency crisis which cost investors $40bn (£31.8bn) has finally been extradited to the United States. 31st December, 2024 - BBC

The bottom line is there will be winners, and for those who invested several years ago, they are likely to make the best returns on their investments if they sell at an opportune moment.

Otherwise you'd be safer to invest your money in a solid bank or building society that pays minimum interest, but guarantees a return on your capital however small it is. In this day and age you can never be too sure, as even renown banks fail.

Take care!

Prof. Carl Boniface

Vocabulary builder:

Martial law = military government, involving the suspension of ordinary law.

Tricksters (n) = a person who cheats or deceives people.

Meltdown (n) = 1. a disastrous event, especially a rapid fall in share prices. "The 1987 stock market meltdown" 2. an accident in a nuclear reactor in which the fuel overheats and melts the reactor core or shielding.

Opportune (adj) = fitting, appropriate, favorable, apt, right, suitable, timely, well-timed, convenient, auspicious, propitious