According to a study, around 27 million people in the United States use Cryptocurrency. Cryptocurrencies have some innate characteristics that make them popular among investors.

But not only controversies, but Cryptocurrencies are also making headlines in the market due to their controversial elements. The cauldron of controversies helps people invest more and more, and the flickers intensify with news that people are turning from rags to riches.

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In this article, we will try to touch upon the points to understand why Cryptocurrencies are controversial.

Controversies That Are Bringing Cryptocurrency To A Limelight

We all know controversies are cooked in different industries like films and entertainment to increase popularity and attain publicity. But it happens in the Crypto world too. Let’s discuss them here in this section to understand this better.

1. Inflation Free

When there is increased demand for a product price because of a lack of supply, it raises the cost of the product. This is what we know as inflation. During this stage, the government prints extra currency and pumps it into the economy.

But with Cryptocurrency, there are no such things. There are around 21 million Cryptocurrencies remaining, and most of it is minded. When prices increase, the value of the currency increases because the regulators make it difficult to mine the currency; hence it gets away from inflation.

Now that Cryptocurrency is free from inflation, it raises eyebrows. That Cryptocurrency challenging the traditional system of economy is indeed controversial.

2. Government Does Not Accept

Some parental organizations must control any system of the economy. But with Cryptocurrency, it is not that. Cryptocurrency is decentralized; hence, it is not controlled and regulated by any third party.

Cryptocurrency is managed by the developers and operated with the help of codes. The government can not have any monitoring on what is transacted by the investors and how much money gets into investment.

This creates anonymity, and hence Cryptocurrency is not accepted by the government. A parallel economy running beside the traditional one without zero control of government creates controversies.

3. Volatility

Volatility is another aspect of Cryptocurrency. This creates controversy. For example, if you buy some product is $ 50 today, would you accept it for $175 after a week?

This is how it can happen with Cryptocurrency. You literally turn into a hero in the morning and may literally be reduced to zero within a few days. But vice versa also happens.

This volatility keeps the prospective investors guessing, but at the same time, it works to increase the buy and sell of Cryptocurrency with time. The success rate of Bitcoin (42% of market share) and Ethereum (with 18% market share) bear testimony to this fact. This is how controversy brings Cryptocurrency to the limelight.

4. Safety Issues

Report on Crypto scams has brought Cryptocurrency into controversies. News of malicious elements offering jobs and asking called Cryptocurrency created headlines.

Not only that, the markets are filled with different kinds of Cryptocurrency scams like ICO scams, Crypto only payments, digital collectibles and games, and others. This raises concerns of the investors, the prospective investors on Bitcoin and Ethereum, but at the same time, creates a lot of noise in the investment markets.

But describing it the other way round, Cryptocurrency is procuring some good popularity and publicity, which is considered a positive development aspect.

5. One Day, Cryptocurrency Will Not Have Any Value

We have mentioned that Cryptocurrency operates behind the reach of the government. This has enabled increased transactions. Many African countries, whose economy is dependent quite a lot on remittance, have made the best use of Cryptocurrency in the presence of a largely fragile traditional banking system.

But, imagine if the news comes up, the Cryptocurrency loses all its value! This will bring a billion-dollar parallel economy to demolition.

The effect will be like an earthquake. Consequently, the traditional economy has to suffer. This possibility is itself a big controversy.

Closing Down

To close the discussion, it can be said that Cryptocurrency has a lot of benefits, but at the same time, it is the second name of controversy. But the positive development is that Ethereum and Bitcoin have grown with time. Actually, these controversies fuel the publicity of Cryptocurrency.