Bitcoins, despite their promise to be anonymous, are really pseudonymous. A digital trail created by these devices may be deciphered by entities such as the Federal Bureau of Investigation (FBI). Using this method, governments or federal authorities can track regular people's banking transactions.

Cryptocurrencies are increasingly popular among criminals as a tool for nefarious activities such as money laundering and illegal purchases. It is well known that Dread Pirate Roberts ran a drug trade on the dark web. In addition to being popular among hackers, cryptocurrencies are also being used in ransomware attacks.

Cryptocurrencies are supposed to be decentralized, with their value distributed among multiple parties via blockchain. In reality, ownership is highly concentrated. One MIT study, for example, found that only 11,000 people controlled about 45 percent of Bitcoin's value.

You made an interesting point here. And you are right, cryptocurrencies can indeed be used for such activities.

I also agree on the point mentioned that while it is sort of advertised that there is the principle of decentralisation it seems that in actual fact that is not the case.

Despite its popularity, cryptocurrency has several drawbacks. Its extreme volatility makes it risky for investors, as prices can swing dramatically within hours. Many cryptocurrencies lack regulation, increasing the risk of fraud, scams, and market manipulation. Transactions are irreversible, meaning lost or stolen funds cannot be recovered. Additionally, the anonymity of crypto attracts illegal activities like money laundering and cybercrime. High energy consumption from mining (e.g., Bitcoin) raises environmental concerns. Widespread adoption is limited by technical complexity, scalability issues, and fluctuating acceptance by merchants. Governments may impose restrictive regulations, affecting value and usability. Lastly, losing private keys means permanent loss of access to funds, as there is no centralised recovery system. While cryptocurrencies offer innovation, these challenges hinder their stability and mainstream acceptance.