Question

What are the limitations of digital currency?

Answer 1

Some limitations of digital currency include:

• Lack of widespread acceptance: Not all businesses and individuals accept digital currency as a form of payment, limiting its usability.
• Security concerns: Digital currencies are susceptible to hacking and fraud, putting users' funds at risk.
• Volatility: The value of digital currencies can fluctuate greatly, making them a risky investment.
• Regulatory challenges: The lack of consistent regulations around digital currencies can create uncertainty for users and businesses.
• Technical issues: Digital currencies rely on complex technology that can be prone to glitches and technical issues, impacting transactions.