August 1, 2020

Crypto & Hazard: Risks Behind Cryptocurrencies

Eija Järvinen
Cryptocurrency

For most of the population, cryptocurrencies are still a book with seven seals. As in traditional banking, an essential success factor is the formation of a mutual culture of trust. This has to be established between all market players such as governments, companies and consumers particularly those using this with their gaming such as judi online. After all, crimes such as money laundering or terrorist financing should not be masked by cryptocurrencies. The general chances and risks of cryptocurrencies are presented below.

Opportunities

  • Lower transaction costs than in conventional payment transactions
  • Faster transfer speed
  • Efficiency gains for payment systems
  • Promising future blockchain technology
  • Increasing popularity as an alternative investment due to loss of confidence in the existing banking and currency system as a result of the financial and sovereign debt crises
  • High speculation gains possible
  • Independence from government control
  • Anonymity

Risks

  • Cyber ​​attacks through security holes
  • Legal and compliance risks due to legal uncertainty due to a lack of proper legal definitions or classification by supervisory authorities (legal conflicts regarding money laundering and suspected fraud)
  • Loss of confidence of the general population
  • High volatility in price development
  • Threat to stability in the financial system
  • Use by criminals for illegal business
  • Capacity problems of the blockchain

 

Cryptocurrencies – curse or blessing for our monetary system?

Without comprehensive state regulation of cryptocurrencies, there is a serious risk to the stability of our financial system due to the lack of a superior supervisory authority. Loss of trust in the banking system, currency fears and the global low interest rate phase intensify the flight into the alternative asset class cryptocurrencies. Despite the numerous risks, there are also some opportunities. First and foremost, the integration of inexpensive and fast transaction options into our existing financial system should be mentioned.

 

The positive aspects have to be used sensibly for the further development of our monetary system. The prerequisite for this is the creation of reliable IT security . Furthermore, appropriate legal foundations are required so that the future economic, financial and monetary policy effects in the age of cryptocurrencies are not left to chance.

With this information, you’ll use cryptocurrency along with your gambling and betting online more carefully.

 

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