It is important to remember that, despite a favourable context, cryptocurrencies carry high regulatory and transparency risks associated with their economic value. Therefore, the answer to its true benefit is an unknown that requires careful analysis.
A benefit of cryptocurrencies is the increase in security and privacy for users when to traditional currency. However, the reduced existence of transaction vaults or existing values that are transferable represents a high risk. Even considering the added value of encrypted technology, security risks are high as a result of the interdependence of systems.
A full recognition of privacy incurs a potential set of threats to common security. Examples are money laundering, similar schemes or terrorist financing. Note that this is not exclusive to digital currencies; however, tracking in this case proves to be truly challenging.
Concerning transparency associated with economic value, even assuming the concept of intangible assets, the risk is high. A clear example in the world economy is the continuous cycle of financial crises due to the total absence of regulation to create currency about gold reserves (and not in full).
Furthermore, basing its face value exclusively on the market is a serious risk, as is fully translating its value via speculation. And, assuming increasingly lower levels of financial literacy and understanding all economic connections, the challenge of families with total losses of their savings could be a reality. One can argue about what the difference is for high-risk financial products (for example unstructured); however, learning from history is vital.
In conclusion, the current challenge surrounding the reality of cryptocurrencies is to achieve a balance between use, security and transparency of associated activities.
