Virtual currencies or cryptocoins are means of payment of electronic or digital form created to fit the computational era we are living in. There are advantages and disadvantages of electronic money, which we will see below. The most well-known are Bitcoin, Ethereum, DASH, Litecoin and Bytecoin, among other, but it is necessary to emphasize that the most used and the one with more repercussion to date is Bitcoin.
The quotation of the virtual currencies naturally varies according to the time, since the primordial characteristic that they have is that its price is regulated by supply and demand. In the future, they may be used very often instead of using real currencies. The idea of cryptocurrencies is to avoid taxes that are usually in other virtual currencies such as PayPal or facilitate payment between two or more people. These are the pro and cons of cryptocoins or virtual currencies.
Payments are made instantly. We do not have to wait for the virtual money.
The ease of making a payment is an absolute virtue. Just scan the QR code that identifies the recipient’s virtual wallet and place the amount you want to send, using any gadget with Internet access, such as a smartphone.
The system of cryptocurrencies is extremely safe, most of these have not presented flaws since they emerged.
The charged fee for each transaction made is negligible. The great advantage of virtual currencies is that there are no high rates when sending money abroad.
The privacy of electronic coins is a virtue since our names are not public as in the case of bank cards. Privacy does not mean anonymity since cryptocoins are not usually anonymous for they leave all the history of the transactions in a database all the history of operations.
One of the cons that payments with virtual currencies have is that an Internet connection is mandatory to carry out transactions without inconveniences; otherwise, we can’t withdraw our money from our wallet.
A massification of a particular virtual currency is necessary to stop having hundreds of different cryptocoins. This is an unlikely scenario, and if unification doesn’t occur, we will never achieve full practicality when making payments.
Electronic currencies are vulnerable to quantum computers, as the processing power of these computers is enormous. Bitcoin, for example, has a limit of 21 million coins and the fate of that cryptocurrency after it reaches that number is entirely uncertain.
The price depends on supply and demand. It is not like in the case of a country, which usually has reserves that support its currency. In electronic currency terms, if many people want to buy cryptocurrencies, their price will increase. That is why there is much oscillation of the prices.
Some electronic coins are prohibited in some countries and do not encourage their use.
If we do not create a backup of the electronic wallet, we can lose all the money stored there with nothing to do about it.