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Summary of the main advantages and challenges of cryptocurrencies, focusing on the three largest: Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
Advantages of Cryptocurrencies
1. Decentralization and security
Most cryptocurrencies operate without central control, protected by immutable and fraud-resistant blockchain networks.
Ex: Bitcoin is highly secure and resistant to censorship.
2. Global access and financial inclusion
Anyone with internet can send, receive, and store crypto, without relying on banks or governments.
Ex: Ethereum enables the creation of dApps accessible globally.
3. Speed and reduced costs in transactions
International transactions are faster and cheaper than through traditional banks.
Ex: BNB has very low fees within the Binance Smart Chain.
Challenges of Cryptocurrencies
1. Extreme volatility
Prices can vary drastically in the short term, making it difficult to use as a stable means of payment.
Ex: BTC can rise or fall thousands of dollars in a matter of days.
2. Scalability and congestion
Some blockchains experience slowdowns and high fees during periods of intense use.
Ex: Ethereum still deals with this issue, despite layer 2 solutions.
3. Regulation and legal risks
Governments are still discussing how to regulate the sector, which brings uncertainties for investors and companies.
Ex: the SEC has already investigated possible classifications as “securities” for ETH and BNB.
In May 2025, Bitcoin continues to be the king of cryptocurrencies. After the halving in April, which reduced the supply of new coins, the price of BTC remains strong, hovering around $103,000. Scarcity has increased the interest of investors and large companies.
Other cryptos, like Ethereum, are also appreciating, but Bitcoin leads as a symbol of trust and digital store of value.
Meanwhile, governments around the world are racing to create clearer rules for the market. Even with advancements, the sector is still volatile and unpredictable.