The answer to this question is very very subjective. Because anything and everything will have functionality and dysfunctionality, as the two faces of the coin. Because you don’t trust you may save yourself from getting into trouble. At the same time, you may lose an opportunity due to a lack of trust!
So whether trusting an individual is good or not is very much dependent on the circumstances. Therefore sometimes it can be beneficial and sometimes it can turn out to be problematic.
However, I would like to elaborate on the aspect of trusting people in general! If you are not able to trust anybody in life, then you will be left alone in this whole world. Being a social animal, social interactions are inevitable. If you don’t trust other people around you, then you may not be able to lead a peaceful life, let alone working with others.
That may result in you ending up being all alone and not able to mingle with anyone. This level of distrust can be pathological. Because when a person decides not to trust others at all, the whole thing can be narrowed down to two important things. That is the person may be trusting himself or herself intensely or the person may not be trusting themselves as well along with the other people.
The trust issues could be arising because of certain childhood conflicts as well. Sometimes, it could be because of previous bad experiences.
It is worth to explore where the trust issues are coming from. If that becomes clearer, then it would be easier to figure out how that can be addressed!
So, to conclude, we need to look into the aspect of trust more objectively. Before, it would be wrong to say if it is beneficial or problematic!
