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Hello, fellow members of the Steemit community! I am excited to participate in Season 2 of the S4B Crypto Contest.

n the early 1980 an American cryptographer "David Chaum" is credited with creating the first form of cryptocurrency known as "ECash". Although ECash didn't see many transactions it marked the beginning of electronic ledger trading. In 1984 after creating ECash Chaum also developed an electronic payment system that was virtually untraceable by banks or government agencies. Bitcoin the first cryptocurrency to gain significant attention was created by someone using the pseudonym Satoshi Nakamoto. Nakamoto set up a website for Bitcoin and worked on its code with other developers until around 2010. After that Gavin Anderson took over as a public face for the project.

Cryptocurrencies such as Bitcoin are unique in that that it can’t be controlled by no server or any authority, it is completely safe and there is a bigger chance for the humanity to be wiped from the face of the Earth, than for a transaction or a user on this platform can be revealed.
As Milutinović stated:

" There is no regulatory body overseeing cryptocurrencies, and transactions are kept confidential on the blockchain ledger "

This confidentiality is maintained because the signup process for virtual wallets doesnt require personal information. To set up a virtual wallet users simply need to find a blockchain wallet enter their email and password and provide basic anonymous information. Therefore cryptocurrencies operate independently of governmental or financial control ensuring privacy and security for users.

Following are drawbacks associated with it:

1. Lack of familiarity:

Many investors and new users are unfamiliar with cryptocurrency leading to a volatile market influenced more by trends than informed decisions.the unfamiliarity with cryptocurrency is something that is a major drawback to investors and novelty users alike. Many people entering into cryptocurrency as a fad vs. informed consumer creates a very volatile market.

2. Trust reliance:

Cryptocurrency relies heavily on trust in its system. While some cryptocurrencies are backed by commodities most rely on trust from users. Since there no centralized authority overseeing cryptocurrency trust is essential for its continued existence. cryptocurrency is a large amount of trust in the product and system. This is similar to the United States dollar. Cryptocurrency sustains from the trust and acceptance of its owners and users of the instrument. Since there is no building that investors can go to or government agency that enforces cryptocurrency trust is involved in believing that cryptocurrency will be around tomorrow .

3. Lack of insurance:

Cryptocurrency investments arent insured unlike traditional assets held by banks or financial institutions.Cryptocurrency has no insurannce and canot be guaranted against liabilities or paid off by other asets like banks or other institutes can.

4. Limited acceptance:

Cryptocurrency acceptance is still limited with relatively few crypto ATMs and many financial institutions not recognizing it as real currency. there are only a select amount of crypto ATMs. There are approximately 2500 crypto ATMs in America with majority of these being in major cities. Additionally many financial institutions do not recognize cryptocurrency as real currency

5. Uncertain future:

The future of cryptocurrency is uncertain and theres no guarantee it will remain popular or valuable in the long term. This uncertainty can deter major investors. The future is unpredictable and uncertain for many commodities. Not knowing if cryptocurrency is just a fad and will only be around for another few years hurts the future of the currency, which makes for a drawback for major investors

I would like to invite my friends @hamzayousafzai @amjadali00 and @rimirahman to join this contest