Cryptocurrencies Are Probably Darker Than You Think!

While a lot has been talked about cryptocurrencies, very few actually mention the banes. Here's speaking a little about the same!

Over the days, cryptocurrencies have been creating headlines and affecting the world on a large scale. While the Government has initiated some rigid restrictions that cannot be overlooked, yet there are some darker truths that one needs to know. 

Cryptocurrencies first appeared about a decade back in the States, and have been quite functional since then. The most popular and frequent among them is Bitcoin, a virtual form of currency that initially cost only a few cents, but has recently risen to 15k$ dollar each. One of the benefits of using cryptocurrency is that they (cryptocurrencies) have entirely eliminated the need for using banks for any transactions. But the problem lies deep inside. Here’s a download!

Most Popular Form of Cryptocurrency

Bitcoin so far has been the most famous cryptocurrency doing the rounds. The price of Bitcoin fluctuates along with its success. This was probably the reason why early investors had seen a massive increase in their investments, especially when the price of a coin would go up, more than a thousand times that of its original price.

Cryptocurrency operates on a very simple concept, where crypto miners all around the world match the value of the coin. These miners make use of computers to calculate transactions that are made by coins. This fetches them security and the users also get a share in return. This might be the reason behind a massive increase in the number of crypto miners. However, it’s worth noting that the planet is being highly polluted with the over usage of power and technology. 

Cryptocurrencies Do Affect The Planet

A lot of power is included in the mining of cryptocurrencies. This is because the miners use computers to calculate power; however, a single computer can take very little calculations. As a result, a lot of computers are being used. This in result, draws in a lot of power, leading to enormous amounts of pollution.

China, being the most populated country in the world, indulges in most of the mining. The Chinese played a big role in the mining of cryptocurrencies. 

Extortions and Money Laundering

Criminals have really benefited from the emergence of cryptocurrencies. It’s an easy task to launder money through cryptocurrencies. Usually, cybercriminals attack the websites of big corporations, making them unusable, and even stealing valuable data. International publication ‘The Sun’ reported that hackers managed to steal around $70 million worth of Bitcoin.

Impact on the World Economy Isn’t Positive

Since it’s really hard to trace cryptocurrencies, and they can be used anywhere, they are quite popular on the deep net or dark web. The dark web is unavailable to most users, as mostly all illegal trafficking activities take place, which is inclusive of drugs, human trafficking, and weapons.

Most of the time, cryptocurrencies are used to buy from these websites. Since cryptocurrency values keep inflating, the amounts can eventually become endless, when more and more users delve into them. 

What Warren Buffett Says

Billionaire investor Warren Buffett is of the opinion that unlike buying stocks, bonds or real estate, buying cryptocurrencies isn’t an investment. To quote him, “If you buy something like bitcoin or some cryptocurrency, you don’t have anything that is producing anything,” Buffett says in an interview with Yahoo Finance. “You’re just hoping the next guy pays more. And you only feel you’ll find the next guy to pay more if he thinks he’s going to find someone that’s going to pay more.”

In Conclusion

Cryptocurrencies, in general, are quite a confusing affair and we just tried highlighting on the dark phases. As the previous paragraph shows, Warren Buffett, called ‘Bitcoin’ as ‘probably a rat poisoned square’, and also a delusion. He even mentioned that he wouldn’t be surprised if cryptocurrencies weren’t around in the next 10-20 years.

Now, whether or not cryptocurrencies would survive, one has to be really careful while investing in it. It’s always advisable for any industry to do a proper background check of how things are likely to fare in the near future. 

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