The downside of cryptocurrency

In 2014 there are people that are saying cryptocurrencies are coming to end however I disagree because countries all across the world can and will benefit from the cryptocurrency market in a variety of ways namely fees and taxes. However the downside to cryptocurrency will inevitably be regulation, fees and of-course insurance from losses.

People make the argument that fiat money is backed by nothing , however this is not entirely true. Fiat money does have value in our current world and fiat money is also currently insured and respected more so than any cryptocurrencies are. What I anticipate happening with cryptocurrencies is holders of all types will be subject to a capital gains or a similar tax for either buying or selling a cryptocurrency. Some people will opt to hold onto cryptocurrency which I think won’t bother countries much because in order for business to eventual operate exchanging in cryptocurrencies they will probably have to disclose “earnings” when filing taxes which Governments will more than likely impose  some kind of tax on.

The end result of cryptocurrency I think will make it harder for businesses to operate which they’ll more than likely pass on to their consumers or customers. That said I don’t think cryptocurrency will just disappear or fade away however trading in it will probably be more beneficial to people that have an international customer base where as local or small businesses especially those with inventory will feel the financial strain from selling in cryptocurrencies.

All that said I think we should expect to see cryptocurrencies in major retail stores or corporations that will possibly charge a premium for excepting cryptocurrencies. Although there is a downside to cryptocurrencies I think the upside will be profitable enough for it to survive. I doubt cryptocurrencies will go away however fees, regulations and taxation will be the reality for cryptocurrencies in the near future.