Cryptocurrencies have been growing and developing at rocket speed with each passing year. Bitcoin was the dominant power in the crypto market in the beginning, which was then followed by the rising acceptance of other Ethereum, Dogecoin, Ripple, etc. But the fact should not be forgotten that cryptocurrencies are highly volatile and involve a huge risk factor. The trading may not always be in your favor. To have a smooth and successful training experience, the investor must have the skill as well as a good understanding of the changing trends in the crypto market. But there are many small and big issues cryptocurrencies face that become hurdles for their growth. Below are the major problems the crypto market faces.
- Government Regulations
Government authorities and regulatory bodies in different countries have different approaches towards cryptocurrencies. While some of them have a welcoming attitude, some are completely against the idea. Investors and traders all across the world are constantly observing international developments to monitor the changing outlooks towards modern digital currencies.
International community experts a strong hope in cryptocurrencies in the mission to eliminate financing to terrorism and money laundering. Many world leaders also have the same opinion regarding cryptocurrencies. Many countries are studying the scope, benefits, and cons of cryptocurrencies to frame the rules and regulations regarding these digital currencies. Therefore, crypto investors and traders are looking forward to getting a positive signal from government authorities across the world.
Cryptocurrencies feature an unregulated nature, which means nobody will be able to access the funds without the private keys required to view the digital wallet. So, if someone passes away without giving their private keys, nobody can inherit the fund. If the investor dies accidentally, the fund may go useless with no way to access it. Therefore, several people demand a better awareness and educational program on the use of cryptocurrencies with solutions to problems like this.
- Security Risk
As cryptocurrencies are digital currencies, they are exposed to malware, operational flaws, and hackers. If the hackers can successfully target and hack a popular cryptocurrency exchange, they can get access to numerous accounts as well as digital wallets where the users store their cryptocurrencies. There have been such incidents before where millions of bitcoins were stolen. Therefore, people are looking forward to a more secure and safe proposal from cryptocurrency exchanges.
- Market Risk
The value of cryptocurrencies can rapidly fluctuate like any other investment. Even though this is not a new matter, the volatility of cryptocurrencies is a concern of many people. There have been wild swings in the value of cryptocurrencies even in their short period, which have made huge headlines on international news sites.
If the cryptocurrencies suffer continued defiance, there are chances that their value may go down. Investors, traders, and experts are still debating on the future of cryptocurrencies. If cryptocurrencies succeed in tackling all these issues, cryptocurrencies can have a very smooth life ahead. We can wait and witness the journey of cryptocurrencies.