For a large part of the population, cryptocurrencies are still a book with seven seals. The current lack of regulation represents a not insignificant market entry barrier for some players. In particular, because of the anonymity and decentralization of cryptocurrencies, state surveillance is necessary for the creation, market launch and distribution of cryptocurrencies. After all, crimes such as money laundering or terrorist financing should not be concealed by cryptocurrencies. If you are planning to use cryptocurrency in your next bet then find out more at gg tips website and get some free betting offers.
General opportunities of crypto
- Lower transaction costs compared to conventional payment transactions
- Faster transfer speed
- Efficiency gains for payment systems
- Promising future blockchain technology
- Increasing popularity as an investment alternative due to loss of confidence in the existing banking and currency system as a result of the financial and sovereign debt crises
- High speculative profits possible
- Independence from government control
Risks of crypto
- Cyber-attacks through security holes
- Compliance and Legal risks because of legal uncertainty due to a lack of proper legal definitions or classification by supervisory authorities
- Loss of confidence among the general public
- High volatility in price development
- Endangering the stability of the financial system
- Use by criminals for illegal business
- Blockchain capacity problems
Cryptocurrencies – a curse or a blessing for our monetary system?
Without comprehensive state regulation of cryptocurrencies, there is a serious risk to the stability of the financial system due to the lack of a higher-level control body. Loss of confidence in the banking system, currency fears and the global phase of low-interest rates intensify the flight to the alternative asset class of cryptocurrencies. Despite a number of risks, there are some opportunities as well. First and foremost, the integration of inexpensive and fast transaction options into our existing financial system should be mentioned here.
The positive aspects must therefore be used sensibly to further develop the monetary system. The requirement for this is the development of dependable IT security. Furthermore, appropriate legal foundations are required in order not to leave the future economic, financial and monetary policy effects in the age of cryptocurrencies to chance.Read More