Pushpendra Singh, founding partner, Centricity, a wealth technology platform, shares his views on why it is important to be aware about volatility and price fluctuations around cryptocurrency investments with FE Blockchain.
1. What are the three best practices that today’s youth should follow when it comes to digital assets?
· Cognizance with respect to risks involved in the asset class/product and regulatory body governing the asset class.
· Awareness with respect to the payment mechanism to buy the digital asset and possibility of cyber fraud.
· Legal recourse available in case of criminal violations by the product manufacturer.
2. How can block chain be used to keep digital assets safe? Which are the apps consumers can use?
· Blockchain stores data in blocks linked together via cryptography and chained together chronologically. Crypto uses blockchain as a transparent and permanent ledger to record transactions.
· No single user has control over the underlying blockchain technology especially in case of crypto and is therefore decentralized.
· Data is immutable and irreversible, which means ownership records are permanent and viewable to all users.
3. What are three tips you would like to give to people who dabble in crypto trading?
· To be aware of underlying volatility and wild price fluctuations
· Low liquidity and counterparty risks involved.
· Possible scams and frauds due to lack of regulation and legal recourse (For example crypto hacks)
4. Which according to you is the country leading in the space and the Indian start-up ecosystem can pick up the best use cases?
· Singapore is a leading innovator in this space and CoinDCX in the Indian landscape.
5. What are the disadvantages of block chain?
· Blockchain is not immune to software bugs and glitches.
· Misuse of quantum computing technology which could be potentially used to rewrite certain bits of the blockchain or alter financial records.
· Storage and upfront costs associated.
Also Read: Cryptocurrency: A revolution or a gimmick