Digital currency, like Bitcoin and Ethereum, is a new way of handling money without needing banks (Forbes Advisor Council, 2022). People who like it say it could change how money works worldwide, making it easier for everyone to use and cutting down on costs. They also like that there's only a limited amount of digital currency, which they think helps protect against prices going up too fast, which is good for people who want to invest their money in something different.

But there are big risks with digital money too. Prices can go up and down a lot, which worries some people because they think it could be easy for rich investors to control the market or for everyone to start buying and selling just because of rumors, causing prices to swing wildly. For example, in April 2021, the price of Bitcoin dropped a lot in just one month, showing how unpredictable it can be (Investopedia, 2023).

Another problem is that many digital currency transactions are anonymous, which means it's hard for authorities to keep track of who's doing what. This raises worries about things like illegal money movements and people not paying taxes like they should (Reserve Bank of Australia, 2021).

So, in short, digital currency has some good points, like making finance more accessible and giving investors more options, but it also comes with risks, like prices changing too much and regulatory issues. As this new way of handling money keeps growing, it's important for both policymakers and people using it to find a balance between making things better and managing the risks.

References: 

Forbes Advisor Council. (2022). Digital currency: The future of your money. Forbes.            https://www.forbes.com/advisor/investing/cryptocurrency/digital-currency/

Reserve Bank of Australia. (2021). Digital currencies [Explainer]. RBA Education. https://www.rba.gov.au/payments-and-infrastructure/central-bank-digital-currency/

Investopedia. (2023). Digital money: What it is, how it works, types, and examples. Investopedia. https://www.investopedia.com/terms/d/digital-currency.asp

BBC News. (2021). Bitcoin price crash: What caused it and what does it mean for the future? BBC. https://www.bbc.com/news/technology-61796155

WSJ Custom Studios. (2022). How should we regulate crypto? Experts weigh in. The Wall Street Journal. https://www.wsj.com/articles/how-regulate-cryptocurrency-markets-11670110885