Billions of people are investing in crypto, and it is estimated that more than 1 billion people are actively trading in the crypto exchange. So, it’s safe to say that it’s an insanely large industry. But this industry has lots of harmful sides and harms the world in many ways. Some of them are:
Money Laundering and Terrorist Financing
One of the most widely dangerous uses of cryptocurrency is money laundering and terrorist financing. I am not making this up. I have real news and proof. Now, in 2017, the United States has shut down AlphaBay, which is the largest illegal marketplace. One can buy all the illegal things like drugs, weapons, hacking tools, dangerous chemicals, and many other things. And the US authority found out that AlphaBay was dealing in cryptocurrency. It’s just one example of the dangerous use of cryptocurrency. Now, there are many reports that suggest that cryptocurrency is used for funding many terrorist organizations. Since crypto transactions can be done in private, no one will know about the transactions, and they don’t have to explain their transaction to the government or others. That’s why dangerous people are using this digital currency for various dangerous activities.
Retail Transactions Are Extremely Slow
We, people, choose cryptocurrency because fund transfer is way faster than bank transfer. But it’s also a fact that retail transfer is very slow. The reason is very simple which is the blockchain. Now, we all know that cryptocurrency works with blockchain. And when a transaction is being done, the blocks and ledger will need time to update, and this process takes a good amount of time. So, retail transactions are extremely slow for cryptocurrencies.
No Regulation of Government
It’s another dark side of cryptocurrency that government and government-regulated institution has no control and regulations over the cryptocurrencies. That is because cryptocurrency is extremely hard to trace, so they don’t believe in cryptocurrency’s validation. Since there is no regulation on cryptocurrencies, so it is very dangerous that anything can happen with crypto, and if you invest there and then become a victim of fraud, then you won’t be able to go to anyone. At the same time, no one knows who is running and operating the crypto, so who will be responsible for its functions? More simply, cryptos don’t have a reliable and clear authority and history.
Can’t Ask for Refunds
We all know that no one has the slightest idea who controls and is responsible for cryptocurrency management. At the same time, the government has no control over it and has no regulations. So, if money left your wallet and something wrong happened with the process of the transaction, then you can’t ask for refunds. That’s because you don’t know whom to go to for a refund. However, if you use a platform that acts as a middleman in the transaction process, like Binance, then you will be able to ask for your refunds. Otherwise, you just have to forget your money and effort.