Today’s digital age has ushered in advances in technologies and opportunities never seen before, and the field of investing is no exception. Nine years ago, in 2009, a technical white paper was published under the pseudonym Satoshi Nakamoto, detailing the workings of a concept known as “cryptocurrency”.
This form of currency, as the name suggests, is digital in nature and thus has several advantages and disadvantages attached with it as a result.
Firstly, cryptocurrency is deemed to more secure than traditional currencies given that it uses complex cryptography, such as hashing and “proof of work” as security mechanisms. This prevents the currency from being counterfeited.
The benefits extend past mere security – one of the most advantageous traits of cryptocurrency is that it is immune to government tampering or regulation.
However, there are certain disadvantages as well. The anonymous nature of the currency makes it susceptible to illegal activities, since origins can be difficult to trace. Furthermore, given that the currency is stored on digital wallets, they can be erased if the equipment malfunctions