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10 Most Common Myths About Cryptocurrencies

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Dollar vs Bitcoin myths image courtesy of pixabay
Dollar vs Bitcoin myths image courtesy of pixabay

You probably want to invest in cryptocurrency but you have too many questions yet to be answered. Multiple myths surround Bitcoin and cryptocurrencies which make people shy away from investing. This article identifies and debunks some of the common myths. This article is targeted at explaining and thrashing the fears and myths that keep people from investing in crypto. By the end of this article, you would have garnered enough knowledge to enhance your understanding.

 Cryptocurrencies are Anonymous

Truly, crypto addresses allow you to perform transactions without being identified; however, this is not completely true. This is because your identity can be traced if it is linked with your wallet address. Instead, crypto addresses are better seen as a pseudonymous, i.e. one’s true identity can be hid in the addresses.

Your address gives no detail about you but you can be traced especially if your identity is linked with the address.

 Cryptocurrencies are Worthless

From observing the trend of “rise and fall” in cryptocurrency prices, one may conclude that they are worthless. This is not a good attribute for whatever is called money. Not few people who possess crypto assets see it as a means of storing value for the future. Notwithstanding, crypto finds its usefulness in many aspects.

There are many cryptocurrency exchange platforms which help with bridging this gap. There are crypto exchanges now allow users to invest using fiat currencies. Besides this, there are also platforms where people sell goods and/or services in exchange for crypto assets. The best crypto signals channels on Telegram also give a lead on the recommended tokens that have a price surge possibility.

 Cryptocurrency Exchanges Are Multipurpose

Exchange in crypto is quite different from the normal trade exchange we have all been exposed to. In the normal exchange, investors buy company stocks through a licensed broker. It is this broker that executes the trade on behalf of the investor.

He browses through various exchanges and finds the most profitable one to trade with. When he finds such a one, he executes the trade. In this case, the investor does not need to know anything about the trade, and it is an easy way to make money.

 No Progress Made

Well, crypto is on the verge of gaining prominence in the world today. In fact, the level of influence that the crypto ecosystem has had in our world in recent years is quite undeniable. Although, from the current prices of crypto tokens, people may assume that there is no much progress made in this ecosystem. This is one of the most popular myths. Nevertheless, crypto is really undergoing a lot of positive progress.

Many nations have even imposed taxes or bans on it because they are scared that it might replace their own traditional monetary system. This is very possible with cryptocurrency as it has the potential to do so. With crypto, exchanges may be done using a smart contract unlike the traditional one where humans are directly involved. All these usefulness would soon reflect in the prices too.

 Overly Priced

The reason why many people have not ventured into cryptocurrency is because they think it is too expensive. This has become so mainstream and reigns on top of cryptocurrency myths. Truly, Bitcoin price for example is on the high side. It had an ATH of $20,000 in December 2017; however, it is a lot lesser now. It costs just about $7,400 at the time of writing this article. Moreover, Bitcoin is a token that can be purchased in portions. Therefore, you can buy any amount you want to – whether $100 or $10,000 or any amount.

 Crypto Mining is Energy Wastage

What do you call what you spend on your child’s education and upbringing? Do you call it a waste because you pay 20 times more than others pay for their children? No! I am sure you would have done such because of the value you get in return. This is also applicable in crypto too.

It is true that mining crypto coins use a lot of electrical energy. But, this is what makes it so perfect. All the decentralization it offers, the security and traceability it offers are all a result of the high power used in mining it. Though reports have shown that mining Bitcoin consumes electricity that can be compared to what some countries would consume a year. Yet, it is worth it.

 It is transparent

Crypto transactions are quite transparent. Every transaction by a system is open to other systems in that network. However, it has the ability to conceal one’s identity as I said in one of the earliest paragraphs.

Even more, there are still some platforms that enhance your privacy so you can perform transactions without fear of being hacked. Though your anonymity can’t be perfectly assured; crypto still offers a balance between transparency and privacy.

 Terrorists Haven

The media and other public activities have really shown crypto as a kind of “honorable” platform for criminals and hoodlums. This is not true in any way because the exact opposite is the case. Criminals do not find it exciting to carry out fraudulent activities using the blockchain technology because of the privacy it offers.

Even though movies and other public shows tend to convey the message that such people use crypto to raise money for their activities. No enforcement agency or crime detection department has been able to prove that. It is the least place they would want to be. I would recommend the security that blockchain technology offers anywhere as a matter of fact.

 A Burgeoning Ponzi Scheme

ponzi scheme
ponzi scheme

It is ridiculous to assume or even conclude that crypto is a Ponzi scheme. This is far from truth! A Ponzi scheme has a centralized management while crypto is a decentralized system, i.e. it has no sole controller. Furthermore, unlike Ponzi schemes, crypto does not depend on the incoming users for the existing users to earn money. It just works with the number of users available and life goes on!

 It is for Illegitimate Purposes

Is there anything in this world system that people don’t take advantage of to perform illegitimate transactions? Avoiding crypto because of such activities would be as good as being isolated from the world. Truly, there are people who actually create crypto tokens in the bid to scam others. However, a diligent and careful probing of every of your crypto activities will help you easily spot the spooks.

 In view of the range of ideas shown above, it is clearer that the misconceptions and myths about cryptocurrencies are misplaced. There is a whole world of uses for crypto that we are getting to know about.

Author Bio: Claire John

Claire John is a Crypto-enthusiast, Blogger and a Digital marketing advisor. She has been writing for Tweakyourbiz, Smallbusinessbonfire, Rankwatch, ProvenSEO, etc. but this doesn’t stop her here. Her passion for writing drives her to utilize her diverse skill set to develop online marketing strategies and create efficiency to enhance her client’s experiences.You can find her on LinkedIn and Twitter.

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