Why Do Some People Hate Crypto? Cryptocurrency is a form of digital money that has attracted many people. I don’t think anyone around the world would have missed cryptocurrency terminology or its definition. Essentially, the basic concept of cryptocurrency is “it is a form of digital money that has some similar features as of conventional money”.
However, there are several differences among physical money (like USD, EURO, etc.) and digital money. Physical money is a centralized or governed by government institute whereas digital money or crypto currencies are decentralized form of currency (not regulated by the government institute).
The difference of governing is a major factor driving hatred for the cryptocurrency among the individuals. However, several other factors are also bringing so much hate for the crypto. Below are some of aspects that clarify “Why do some people hate crypto?”
Reasons Why Do Some People Hate Crypto
The Lack of Crypto Market Regulation
The crypto market is extremely volatile, which makes individuals to loss significant amount of crypto value within a second. Several crypto enthusiasts are in favour to bring a suitable rules and policies, so that engagement of investors would get increased. However, if new regulation is made for controlling the market, the essence of decentralized crypto would be lost- This is a word of some cryptocurrency enthusiasts.
Although many crypto enthusiasts are against of new regulation, many believe that new regulation would potentially bring huge investors and encourage them to engage with crypto realm.
According to Aaron Klein “New regulation has the potential to protect long-term investors, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy. He is a senior fellow in economic studies at the Brookings Institution, focused on financial technology and regulation. While commenting on the regulation, he also says that forthcoming regulation will need to strike the right balance.
Cryptocurrency: Regulated & Backed by Non- Government Institution
The major reason for getting so much hate for crypto is absence of government involvement in the cryptocurrency. Being decentralized in nature, cryptocurrencies are not governed by the government institution. However, it is one of the highest appealing and exciting area for every individual around the world.
While, if you see fiat currency like US dollars or Euro, etc., they are controlled and regulated by the government reputed organization. Therefore, individuals have more faith on fiat currencies instead of digital form of money or cryptocurrencies.
Since, cryptocurrencies are not backed by the government, the responsibility of losing money do fall on the investors. It is one of the reasons why some people hate crypto currencies.
Chances of Losing Cryptocurrencies
If anyone holds crypto currencies in their crypto wallet, it is extremely important to make their crypto wallet secure and safe. By keeping crypto wallet private, individuals could have minimal chances of losing crypto currencies from being hacked.
Hacking is one of the reasons that have fueled hatred and anger among investors and users for the cryptocurrencies. In the month of August to October, several instances of crypto wallet hacking has been noticed. In fact, the hackers had hacked cryptocurrencies from one of the highly safe and secure crypto exchanges like Coinbase, Binance and others.
Apart from hacking, there is also other chance of losing your cryptocurrencies. If you lose your private key, you could lose your entire cryptocurrencies kept in your wallet. This might not seem like a big deal, but there are many instances where individuals have lost hundreds or even thousands of coins with no way to recover them. It is one of the reasons why some people hate crypto.
Crypto Transactions Are Only Partially Anonymous
The Blockchain is a public ledger that keeps track of all crypto currency transactions. While this provides total security and transparency, it also raises the likelihood of users being targeted for their cryptocurrency-related actions.
People have occasionally been the target of hackers or other criminals because of their crypto currency transactions, which has increased anti-crypto sentiment. Therefore, it has also clarifies “Why some people hate crypto?”
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