Since the introduction of bitcoin in 2009, cryptocurrency has seen a massive rise in popularity and gained value. However, there are several myths related to cryptocurrency and its value. These myths stop several people from investing in this market.
In this blog post, let’s look at some myths and myth-busting evidence that can help you decide better for your investment portfolio.
- Myth: Scam, scam, scam!
Truth: Several investors think that cryptocurrency is a scam. But let us tell you that today, several businesses accept cryptocurrency as a valid payment method. You can read our previous blogs on the same.
Moreover, several countries are making an effort to establish regulations for the cryptocurrency market to ensure that you aren’t robbed of your money. Yes, we know that there have been previous instances where people have been scammed to take away their cryptocurrency and money. However, most outlets or exchanges are completely legal.
To ensure that you don’t fall victim to any scams, try to learn about the market and gain knowledge. This will certainly help you in the long run.
- Myth: No value
Truth: Several people still think that cryptocurrency has no value. However, such is not the case! Currently, the value of bitcoin stands at $69,000 per bitcoin in 2021. That’s a lot of value in terms of dollars.
Also, cryptocurrency’s value can’t be determined only in dollars. The blockchain technology used to develop cryptocurrency has massive real-time applications in the present and future. For example, the Ethereum blockchain has applications in the financial industry such as decentralized finance, non-fungible tokens, and more.
- Myth: Cryptocurrency is used to fund illegal activities
Truth: This is one of the oldest and most prevalent myths of cryptocurrency. Several people believe that cryptocurrency is used to fund illegal activities. Now, there is some truth in it, but don’t you think this can be said about fiat currencies too. Before cryptocurrency came into the picture, illegal activities were funded using fiat currencies.
However, the use of cryptocurrency to fund illicit activities has come to 0.34% of all transactions in 2020 according to research conducted by Chainalysis. Moreover, governments have created regulatory bodies and organizations to keep an eye on illegal crypto transactions. For example, in the US, illicit use of cryptocurrency is investigated by the National Cryptocurrency Enforcement Team (NCET).
- Myth: Cryptocurrency isn’t secure
Truth: This is one of the biggest myths that need immediate myth-busting evidence. If you also thought that cryptocurrency isn’t secure, you are in for a surprise!
The blockchain technology used to develop cryptocurrency and to conduct transactions is one of the most secure networks. Each transaction is stored on a block in the blockchain that is encrypted. Any new transactions keep adding on new blocks and are being verified by automated verifiers.
It is highly impossible to steal any information from the blockchain. However, the major risk of stealing lies in the software and platforms used to make these transactions. This includes digital wallets and cryptocurrency exchanges. These platforms have a risk of getting hacked.
To overcome this issue, you can store your crypto keys in the cloud and transact only smaller amounts at a time.
These are the top four prevalent myths about cryptocurrency around the world. Do you know of any more such myths? Share them with us and we will get down to myth-busting right away.
For more such insightful blogs, keep reading Coin Informer!