Five Reasons Why Cryptocurrency Is Not a Good Investment

Cryptocurrency has become more popular than it has ever been. It saw a surge of interest after bitcoin hit historical prices and received worldwide media coverage.

A cryptocurrency is a digital or virtual currency that uses cryptography for security, it is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency is that it is not issued by any central authority rendering it immune to government interference or manipulation.

However it is not all fun and games in the cryptocurrency sector. According to reports, investors have already started making losses and taking big hits. Some crypto investors have a sturdy belief in their currency and feel that a de-centralised currency system is the future of all currency. But other financial experts and critics have warned ordinary investors to stay away from the tricky world of crypto.

Investment Moghul and billionaire Warren Buffet warned investors that cryptocurrencies could see their fall soon. He said he would never invest in bitcoin and cryptocurrencies.

Here are five reasons why cryptocurrency is not a good investment for the average investor.

Too many cryptocurrencies to choose from

How does a regular investor decide which one to buy? And where can it be spent? These practical reasons make cryptocurrencies less than ideal for most people. Whether the cryptocurrency which you own is actually accepted where you need to spend it is very important.

Not enough places to spend it at

Cryptocurrency investors are more likely to hold on to their coins rather than spend it. This is especially significant since not a lot of places accept crypto in the place of traditional money. Even companies that raise money through coin offerings expects customers to pay in traditional money for the coins.

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No advertising

Cryptocurrency advertising is now banned by most media companies due to fear. This makes it all the more a risky and complicated process. Reduced advertising can mean that the reach of the cryptocurrency is lesser.


Hackers have made away with cryptocurrency worth billions. Sure, they can steal traditional money too. However, the secrecy behind crypto makes it a potential hacking scenario. People find it difficult to trust something they can’t see and feel and hence fear of hacking is a major reason many investors are choosing to stay away.

Government policies

Governments don’t like cryptocurrencies. The economy of a country can end up in shambles if all its citizens start trading in crypto. This can mean that cryptocurrency can be banned or heavily regulated in many countries.

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