What are the disadvantages of cryptocurrency?

The main disadvantages of cryptocurrency include cybersecurity, price volatility, and irreversible transactions.

Because cryptocurrency relies on digital technology, it is subject to cybersecurity breaches by hackers. There is no fraud protection with cryptocurrency, so if it's hacked or lost, it's gone for good.

Another drawback is price volatility. Factors that influence the value of currency do not apply to cryptocurrency (e.g., monetary policy, inflation rates, etc.). However, there are some key drivers of price, including: the supply of cryptocurrency and market demand for it, the number of competing cryptocurrencies, and the exchanges it trades on. Increased adoption should also increase consumer confidence and decrease this volatility.

Finally, cryptocurrency transactions are irreversible. Once a cryptocurrency transfer has been authorized, it can’t be reversed. This is a hedge against fraud which requires a specific agreement to be made between a buyer and seller regarding refunds in the event of a mistake, fraudulent activity or returns policy.