1. Increased financial inclusion: Cryptocurrencies have the potential to enable more people to participate in the global financial system and reduce the costs of transactions, which could result in more people having access to financial services.
2. Volatility: The price of cryptocurrencies is extremely volatile and can fluctuate significantly in a short period of time, which can lead to potential losses for those who are invested in them.
3. Legal and regulatory risks: Cryptocurrencies are largely unregulated and therefore present legal and regulatory risks, as governments and other authorities may create laws or regulations that impact the use of cryptocurrencies.
4. Security risks: Cryptocurrencies are vulnerable to hacking and other forms of fraud, which could lead to loss of funds for users.