The year was 2009 when the first decentralized Cryptocurrency was launched. More than 12 years later, there are investors who actively put their money in the Crypto market on a regular basis.
On the other hand, you can Read more here, why there are some people who are not able to trust this concept. There are some factors that are encouraging these people not to invest in Cryptocurrencies. Here we will discuss them.
The Reasons Why People Are Still Hesitant of Investing in Cryptocurrencies
Here are the reasons behind the doubt that is wandering in people’s minds while they think about investing in Cryptocurrency.
1. Lack of Knowledge
The whole concept of digital money is not that clear to people. They have some simple questions in their money with the Cryptocurrency.
- How can we convert the cryptocurrency into fiat currency?
- If no Government is issuing it and has no authority over it, how can we use it?
- Where can we get Cryptocurrencies?
- If no one is regulating it, how is this system running?
Till they are not getting some satisfying answers to all these questions, the group of people who are staying away from the Crypto world will continue to stay away from it. They also have no understanding of Blockchain technology as well.
2. Legal Concerns
Cryptocurrencies are not issued by any government or central bank. Rather, Cryptocurrencies are totally decentralized. So, they do not fall under any legal tender. It also increases the panic between those people who have very limited knowledge about the Crypto market.
The government is also concerned that in case this concept fails, it will take down the big economies with it as well. Common people also think that as Cryptocurrency does not fall under any legal tender, it will be considered illegal activities if they deal with Cryptocurrencies. Common people consider this as money laundering, terrorism, or any other fraud.
If we judge all the investments, Cryptocurrency is considered as the most volatile investment. The market of Cryptocurrency is too unstable to rely on. Due to its volatile nature, most people do not put their money in Cryptocurrency.
Volatility is the most obvious nature of these currencies. Though this nature also has its own perks. You can consider the market of Cryptocurrency during the years 2017 and 2020.
In 2017, Bitcoin reached the highest value price of that time, later the value price started to decrease, and during the starting of 2020, the value price of Bitcoin and other Cryptocurrencies started to drop. But after a few months, the price value of Bitcoin had begun increasing. 2021 started, and the value of Bitcoin reaches its heist value of more than $40,000.
4. Security Concerns
As all Cryptocurrencies are digital currencies and available online, they are prone to hackings. Most people do not have a piece of proper knowledge on how any Cryptocurrency exchanges and Crypto wallets work. So, securing their digital currencies online is not an easy task to do.
People with very lesser knowledge about gadgets and the digital world are scared to use these things as a small mistake can invite danger to their money. Though the Crypto exchanges and individuals take several measures in order to secure the currencies, hackers are still able to find a shortcoming to hack them and steal the money.
5. Too Many Options
There was a time when Bitcoin and Ethereum were the only well-known Cryptocurrencies in the market. With the passing years, the amount of available digital currencies has grown tremendously. At present days there are around 5,700 Cryptocurrencies available in the market.
The Crypto market is already facing a lot of ups and downs. The new launches will increase the uncertainty between the investors and people.
Though Cryptocurrencies have given a massive gain to a lot of investors and also given some millionaires to us, there are still some doubts about it. These doubts are preventing a group of people from investing in the Crypto market.