A Guide To Disadvantages Of Cryptocurrency Training Ppt

Slide 1

This slide lists the disadvantages of cryptocurrency. These include inability to scale, price volatility, risk of data loss, high consumption of energy, and illegal transactions.

Slide 2

The slide talks about poor scalability as a disadvantage of cryptocurrency. The scalability issues that cryptocurrencies pose are probably the most serious ones. While the number of digital coins and their usage is fast-growing, it is still dwarfed by the number of transactions that payment giants like VISA, Alipay, Amazon etc.

Slide 3

The slide discusses price volatility as a disadvantage of cryptocurrency. Cryptocurrency is seen as volatile since it is a newer asset class with the potential for big upward and downward moves over shorter periods.

Slide 4

The slide talks about risk of data loss as a disadvantage of cryptocurrency. Cryptocurrency creators sought to create invisible ASCII documents and robust hacking defenses, and impenetrable authentication processes. It is safer to keep money in cryptocurrency rather than cash or bank vaults. However, if a user loses their wallet's private key, there is no way to recover it.

Slide 5

The slide talks about high consumption of energy as a disadvantage of cryptocurrency. Cryptocurrency mining is energy-intensive as it requires a lot of processing power and electricity.

Instructor’s Notes: Bitcoin miners are concentrated in countries where coal is used to generate electricity, such as China. Such mining of bitcoins has increased China's carbon footprint.

Slide 6

The slide discusses illegal transactions as a disadvantage of cryptocurrency. Since cryptocurrency transactions are private and secure, it's difficult for authorities to track down or monitor any person by their wallet address. Bitcoin has previously been used as a means of payment (exchanging money) in unlawful transactions, such as buying narcotics on the dark web.