The reason Cryptocurrency is Hard to replace Conventional Currency

Digital currency has become very popular in recent times. This is because so many investors are trying their luck in crypto currency. In Indonesia itself, there are also many teenagers who are diverting their capital from the stock market to the crypto market, how not, the stock market is not showing a positive trend anymore, this is because of the impact of the pandemic that hit as well as PPKM regulations that are often held in Indonesia.

Before we dive deeper into our topic above, we will discuss a little about what cryptocurrencies are.

Cryptocurrency itself is a digital currency that has no vision but has a very varied value and value depending on what coins are traded.

For more details, let’s look at some of the reasons why cryptocurrencies will be very difficult to replace the current currency.

No Physical

The main and most important reason is that cryptocurrencies do not have the same physical properties as existing currencies, so many people will not believe the exchange rate that will be used. This is because cryptocurrency is a value that has been cryptographed so that people will not have their own satisfaction with the value they have.

Unstable market value

Another reason cryptocurrency is difficult to replace the existing currency is because, the price of cryptocurrency itself is relatively unstable where the market often crashes which are very severe as a result if it happens with conventional currencies, then of course it will affect the exchange rate of an item or service. .

not Easy to Control

Cryptocurrency is becoming popular, one of which is because the crypto that we have can only be monitored by the coin owner itself. So if there is a third person who wants to know the cash flow of the crypto value we have to go through it ourselves. That is why crypto is vulnerable to money laundering. Suppose someone A commits corruption and he does not buy him assets such as a car, house, or land but he will buy assets in the form of crypto so that the relevant authorities will find it difficult to track where the money will be used.

From all the explanations above, crypto still has the opportunity to become a global exchange rate but for the next few years it all depends on asset transparency, stable value, and regulations from a country whether they recognize it or not.