What are the advantages and disadvantages of digital currencies?

Some of the advantages of digital currencies are that they enable seamless transfer of value and can make transaction costs cheaper. Some of the disadvantages of digital currencies are that they can volatile to trade and are susceptible to hacks. Digital currencies do not have physical attributes and are available only in digital form.

What are the disadvantages of cryptocurrencies?

The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities. Cryptocurrencies are digital or virtual currencies underpinned by cryptographic systems. They enable secure online payments without the use of third-party intermediaries.

Does digital currency leave a computer network?

Digital currency, however, never leaves a computer network, and it is exchanged exclusively via digital means. There are three main varieties of digital currency: cryptocurrency, stablecoins and central bank digital currency, known as CBDCs.