10 Most Common Cryptocurrency Myths Debunked

Although cryptocurrencies are not something new on the market, for some people, they are still a mystery. The good thing is that it is not that hard to learn about them and use them, and once you get it, you will find out how easy it is. There are many specialized websites, such as bitcointrader2, where you can learn a lot about this subject. Don’t be afraid of things only because they are new to you. Try to learn about them, and you will soon find out how useful they can be. If you still have some doubts, here is a list of the ten most popular debunked myths to help:

Source: Pinterest

1. Replacing the real money

Paper money is with us for a long time, and it is not that easy to replace it. Credit cards are becoming more and more popular, but there are still many people who prefer cash. From a psychological side, it is much easier when you have money in your hands because you know exactly how much you can spend. That means that no matter how cryptocurrencies are popular, there will always be space for paper money too.

2. No taxes

Many people think that there are no taxes while using this type of money since you don’t have to go to the bank, but it is not right. Like any other payments, there are also taxes for cryptocurrency transactions. There are some countries without taxes, but many of them have. In some states, taxes are not the same when you are selling, and when you are buying, but the real truth is that it is not easy to avoid taxing.

Source: McAdam Siemon Accounting

3. Easy to hack

It is not easy to believe something online, but there is no need to worry. Trading platforms are safe enough, and all you should worry about is not to give your personal information to everybody. Hacking those platforms can be compared to hacking a bank system, which means that it is safe enough. Inform yourself well and choose the reliable one, and your money will be safe.

4. Illegal

Since this currency is still new, many people are not sure if it is legal. Many countries are still not using it, but it will probably change since this type of payment is becoming more and more popular in the whole world. Criminals can use every way of payment, and that doesn’t mean that each of them is illegal. It is almost sure that in the future this method will be as popular as all the others.

Source: CFO.com

5. Made for criminals

Some people still believe that this is something specially made for criminals. That is normal since every new thing is hard to accept. The same thing was with credit cards, and many people are still not sure about them. Digital transactions may be easy to use, and many criminals are using them, but that doesn’t mean that it is made especially for them, and shutting those currencies won’t stop criminal actions.

6. Not eco-friendly

This myth refers to the amount of energy necessary for mining or trading, but many people are not using electric power only for that. It is normal to use a computer today, and cryptocurrencies are not making that usage bigger. On the other side, you need a lot of energy to make paper money too, and people are still using it. Keeping money safe is also a demanding job that requires a lot of power, so the bill becomes even higher.

Source: CSO

7. No real value

It is hard to believe in the value of money until you hold it in your arms. Because of that, this myth is maybe the biggest when we talk about digital currencies. Again, the same thing is with credit cards and money on them. Many people prefer cash, and it is okay, but it doesn’t diminish the value of digital currencies at all since you can use them in the same way.

8. It is anonymous

For this type of transaction, users are using pseudonyms, but there is a wallet address, and every transaction is using it. That means that it is partly anonymous, but it is not that hard to find the person who is standing beside the pseudonym. That is crucial for criminal actions, but if you are clean, there is no need to worry about that. In the digital world, it is not that hard to find illegal transactions.

Source: Hacker Noon

9. Cloud-like database

Blockchain can’t store your transactions, and its only job is to make sure that the transaction is safe and transparent. You are the only person that has access to your activities, and there is no need to worry that some other person can see it. Using blockchain is safe since it represents a ledger with records, not a cloud. It only contains a code of action, not a real transaction.

10. Can be shut down

The problem that many people are afraid of is shutting down cryptocurrencies. Luckily, nothing indicates that for now, and there is no chance that that will happen in the future. If you are still not sure about that, let’s make a parallel – we may compare that with shutting all banks around the world. It looks quite impossible, right? The conclusion is that there is no need to even think about that possibility since everything indicates that we will be using this method for a long time.

Every new thing encounters re-examination because it is not in human nature to accept so easily something they do not know enough. Thanks to that, many myths are created, and it is not easy to debunk them. The only solution is to meet the unknown. It doesn’t mean that the new is always better, but it also doesn’t have to mean that it’s not good at all. We need to give it a chance and see if it suits us or not. And even if it’s not a perfect fit for us, it doesn’t mean it won’t be for other people.

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