In this second part, where we provide basic information about cryptocurrencies, we cover topics such as “The superiority of cryptocurrencies, “The reason for Bitcoin’s rapid appreciation.” In this part, we also want to explain the dangers that unconscious crypto money investment can cause.
The advantages of Cryptocurrencies
The most obvious advantage of cryptocurrencies over real money is that it is not affected by the economic situation of any country, since it is not dependent on the central bank of any country. In addition, since it is not known to whom it belongs and is not monitored or supervised by a central authority, it is not possible to face the threat of freezing or confiscation of accounts opened with cryptocurrencies.
Why Bitcoin Gained Value So Fast
In transactions with Bitcoin and other cryptocurrencies, it remains unclear who made the transaction and with whom. For example, when the person who is supposed to send money sends money from a wallet he opened to another wallet owner, it is not clear who sent money to whom or who received money from whom, since all transactions are made through encrypted files.
Therefore, for example, during an audit, although the auditor can learn who made the transaction from the bank, there is no place or authority to ask and find out who made the transactions with bitcoin and other cryptocurrencies. Confidentiality of identity information, not being under the control of an authority, makes the system vulnerable to all kinds of illegal financial transfers.
In this context, cryptocurrencies can become a payment tool used in all kinds of confidential transactions, tax exemption and even black money relations, and as the demand for these transactions increases, their value increases due to the limited number of cryptocurrencies. As the value rises, the demand of those who aim to use this money as an investment tool by looking at this rising value increases, and the value of these coins increases even more as a result of this increase in demand.
Where is the danger?
The biggest danger to cryptocurrencies is the possibility of prohibiting the use of these currencies by states due to the fact that they are open to black money transactions, or demanding the naming of accounts, just like in the action against Swiss banks. As soon as this happens, these coins may suddenly face huge losses in value or even become worthless.
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