Source

I hope you all are doing well. This is my first post in this community. Today I want to highlight a topic that is digital currency. As we all know that digital currency is becoming popular day by day. If we ask people about digital currency, some would say that it is significant while other will say that pysical currency is better. But which is better? In this article we will discuss the pros and cons of digital currency.

Digital Currency

Digital currency is the form of currency that occurs only in digital form. It doesn't exist in physical form like other traditional currencies like bank notes and coins.

Evolution

Source
The exact origin of digital currency is difficult to pinpoint as it is evolved through various concepts and technologies. Here are some examples of digital currency

. Bitcoin
. CBDCs
. DCEP
. Stable Coins

Advantages

[ Generated By Ai ]

Fast Transactions

Digital currency can be transferred faster because they do not require any intermediaries and the transactions are instant.

No Physical Manufacturing

As digital currencies are occur only in digital form so there is no need of physical manufacturing ability. It saves the cost that would be required to manufacture physical notes and coins.

Government Use

Digital currency can be used by government to disburse amount directly to citizens. It save the time and cost of the government and every citizen can avail equal opportunity.

Low Cost

Digital currency deduct a very low cost of the owner.

Privacy

Digital currency gives user a high level of privacy because it doesn't link with the user's personal information.

Decentralized

Digital currencies are decentralized which means that they are not controlled by any government.

Accessibility

Digital currency can be Access all around the world. It is very useful for the persons who don't have access to conventional banking system.

Disadvantages

[ Generated By Ai ]

Security Risks

Digital currencies are vulnerable to hacking. The result is significant fund lost.

Volatility

The digital currencies are known for their price fluctuations. This is risky for investors.

Lack of Regulation

Lack of regulation and oversight make digital currencies vulnerable to illegal activity.

Technological Complexity

Digital currencies require a certain level of technological expertise which is a headache for some users.

Network

Digital currencies require a proper network of connections which is difficult for users that live backward and remote areas.

Keys and Permission

If a user lost its keys of password. It may permanently lost its money.

Fraud

Digital currencies are vulnerable to fraud, hacking and cyber attacks

Conclusion

In conclusion, I want to say that as every thing has its advantages as well as disadvantages. In the same way digital currency also has advantages and disadvantages. It depends upon the user that how can he use. But we have to admit that the upcoming era is the era of digital currency.

I hope you like it.

Cc

@ecosynthesizer
@vivigibelis

Regards

@shoaib004