Читать книгу Investing in Gold & Silver For Dummies - Paul Mladjenovic, Paul Mladjenovic, Ted Sudol - Страница 20

Cryptocurrencies are the new kids on the block, and many are touting some of their benefits, especially compared to conventional currencies. Bitcoin, for example, tries to maintain its digital scarcity, which can be an advantage in maintaining its value, especially because regular currencies are being overproduced as I discuss in the earlier section “Cash and bank investments.”

The problem with these are risks associated with electronic hacking and … wait for it … electricity. Electronic hacking means that someone with enough technical prowess can get into your digital stash of cryptocurrency and take it. There have been cases of folks seeing their accounts go to zero. Also, these currencies are totally reliant on electricity, which makes them worthless during a blackout.

Given this, cryptocurrencies may not technically have a strict counterparty risk (such as a currency, stock, or bond) because there isn’t a specified, identifiable counterparty (such as a government agency or corporate entity). The risks are more attached to digital piracy and associated risks such as electricity.