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What are the challenges of making a new cryptocurrency?

by Sonal Shukla

Introduction

The technology of cryptocurrencies is always fascinating and new engineers and developers are always trying to make their own currency using this technology. Most cryptocurrencies are based on bitcoin revolution which utilizes online transaction saving platforms using blocks and secured them using change. However, these youngsters do not know that there are many challenges circling around a cryptocurrency. If the currency making was so easy then there would be hundreds and thousands of other currencies floating around us. Moreover many industries like online casinos, the VR world, and others require their very own cryptocurrencies but they do not choose to make one because of several limitations on cryptos. In this article, we will be discussing the challenges faced by people who try to make a new cryptocurrency. We will go into detail and also cover the topic of how to make cryptocurrency.

 

How A New Cryptocurrency Is Created

Before we get into the problems faced by cryptocurrencies, we will start with the basic idea of how cryptocurrency is created. In order to create a cryptocurrency, the very first thing you will need is a blockchain technology within your reach. 

To get a blockchain technology you can either write one yourself or use existing blockchain technology. By using a pre-existing blockchain you can simply edit the code and make a new one for yourself. After that, you need to establish a new cryptocurrency on that blockchain that you create or modify. You can do that by creating a token for your cryptocurrency and minting the new coins you need to control the creation of new coins in order to maintain our standard price for your new currency.

In order to make your new cryptocurrency successful, you need to do a lot of marketing and make your brand presence without a proper strategy you will not be able to make your cryptocurrency successful and attract investors and traders into your new digital asset.

Four Challenges Faced By New Cryptocurrencies

  1. The Hammer Of The World Government

Sans cryptocurrencies are decentralized and no government has any control over its distribution or who owns it, governments around the world do not like to use currencies. Recently the head of the international monetary fund, Christine lagarde, talked to the media and gave a statement that shook the crypto world. She said that a regulatory action from the international community is inevitable for cryptocurrencies.

  1. No one can inherit your crypto

There is also an issue of inheritance with cryptocurrencies. In order for someone to pass on their assets such as Bitcoins, they need to tell the inheritor the location of each and every piece of cryptocurrencies their own. Without the physical location of the cryptocurrency, it is impossible to inherit it

  1. The big security risk

Since the operation of digital currencies like Bitcoins, etherium, litecoin, dogecoin and others are based on the internet there is a very high risk of vulnerabilities to hackers glitches and malwares. even though the security right now looks very good due to advanced blockchain technology we should not forget that technology has given birth to recto currencies and it has potential to provide potential risks toward it also.

  1. The risk of trust

Similar to any other type of investment or trading, cryptocurrency trading and investments are subject to market risk. Market trends on the trust of people. If people start losing their interest and trust on cryptocurrencies there is a high chance that the market will fall within a day. It is not new for cryptocurrencies too face of big deep within a day full stop it has been noted in the past that cryptocurrencies fall and rise again and again because of that many e cryptocurrency users have become aware that this is not a stable market is highly volatile. 

Conclusion

When we see all the limitations and challenges that circle around creating a new cryptocurrency and maintaining one we think that trading and investing in existing cryptocurrencies is a better way to gain more wealth does if you are a newcomer  in this industry we recommend you visiting to start trading in Bitcoins.

 

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