Five Reasons To Avoid Cryptocurrency This Year

Cryptocurrency was once heralded by many as the currency of the future. It was believed that investment in these virtual currencies could yield the next digital millionaires. Although potentially profitable, crypto assets are extremely risky and volatile.

This year, in particular, the global cryptocurrency market has crashed massively with several top crypto prices dropping to new low. The price of  one of the top cryptos (Luna) even became almost equal to zero in the current downturn. That said, here are five reasons to avoid this investment per Practical Ecommerce, analysed and curated by best online casino Australia.

1. Volatility

The value of national fiat currencies fluctuates slightly. As such, their buying power, even in times of relatively high inflation, are more or less the same now as in a few months. But cryptos, on the other hand, are remarkably volatile.

2. Unproductive Asset

Unlike stocks or property, where you become part owners of the business, cryptocurrencies doesn’t produce earnings or cash flow. It typically operates like a token that trades at whatever price people are willing to pay.

3. Highly speculative

Cryptocurrency is highly hazardous and you never know what to expect. The value of crypto can rise and fall without any hint, making it highly risky to invest in.

4. No consumer protection

Crypto payments have no chargeback’s.  Whether or not a merchant delivers on its commitment, customer has no recourse. Merchants have no legal or contractual obligation to refund a crypto purchase, although they may choose to do it. However, there is consumer protection at https://www.casinosdeutschland.com.de/ especially if you use crypto as payment.

5. Too many cryptos

As of March this year, it was reported that there were about 18,000 digital currencies. Out of this number, 1583 ae listed on coinmarketcap.com. That is more than all the different types of fiat currencies in the world.