When cryptocurrency emerged, it enabled people to have fast and secure transactions. On top of that, it also allowed numerous people to invest and trade and get a chance to receive great returns. However, despite its rising popularity, the novel technology behind digital assets is still foreign to some, leading to the development of myths.
These tall tales about cryptocurrencies are mistaken beliefs that hinder a lot of people from investing. Are you curious whether there’s the truth to these stories? Discover everything you need to know here at Casino Days India.
Cryptocurrency is not secure
Some people are still conflicted about whether they should start their crypto journey or not due to safety issues since they’re not governed by any central authority.
However, digital assets are safe since they are run on blockchain and protected by a set of complex digital codes called cryptography, which makes them impossible to counterfeit.
Most digital currencies like Bitcoin have a system that prevents users from double-spending which is the fraudulent creation of many transactions via the use of a single process.
Additionally, the blockchain is made up of different nodes scattered across the world, so destabilising the system will be impossible unless 51% of the network is compromised. So theoretically, if a hacker wants to breach the ledger, he must have consensus from half of the network and untangle all the hashes down to the very first transaction, which will demand a long computation power.
Cryptocurrency is expensive
When Bitcoin first emerged, it was only valued at $0.0008, but as time passed it went on to be one of the most successful and expensive digital currencies. Because of this, many people think that digital currencies are expensive and overpriced. While it’s true that BTC is on the expensive side, there are other options you can try.
The crypto sphere is teeming with affordable altcoins. All you have to do is research which are the top-performing ones that fit your budget and check if it suits your needs and wants.
Cryptocurrency is not anonymous
When cryptocurrencies were invented, one of their main appeals was anonymity. Through this, users don’t have to fill out bank forms and other papers where they have to share personal details such as addresses, numbers and more. The only data visible on the blockchain is the address of both parties who participated in the transaction.
However, keep in mind that while the information is not publicly shown, addresses and wallet addresses can be traced, especially when it is used for illicit purposes.
All kinds of cryptocurrency mining are bad for the environment
While it’s true that there har’s posed mining to the environment, not all types of consensus mechanism adheres to this process. For example, coins that use staking such as Ethereum have a more sustainable token minting process as they use an AI to determine who the next node will approve the transaction based on their ‘staked’ tokens.
Additionally, the environmental concern regarding mining is slowly being addressed by some governments. Nations such as El Salvador are currently doing studies on using volcanoes to be the backbone of their mining source.
Cryptocurrency is a scam
There are still many people who believe that cryptocurrency is a scam because of the risk it brings to its users. The reality is that digital currencies are just volatile. It’s a big risk to step into the crypto realm because of the uncertainty it brings. This is why many consider it a scam, so to avoid having massive losses in an instant, it’s always best to do ample research and prepare yourself for different circumstances that may occur.
Cryptocurrency is a fad
When Bitcoin was first introduced in 2008, only a few people saw its potential due to its virtual nature. How can they trust a currency that existed only in an intangible landscape? Naturally, they dismissed Bitcoin and its capabilities. However, the tides turned when its value soared and other digital assets came into existence. Soon enough, big financial companies saw how their revolutionary features can change investing and the day to day transactions of people.
Now, cryptocurrencies rank among commodities such as gold, stocks and real estate when it comes to investment options, so it’s safe to say that it’s not a fad that will go away anytime soon.
Cryptocurrency can’t be used for payments
Digital assets are slowly being welcomed across the world. Countries like the United States, Canada, Australia, and Israel have various stores that accept cryptocurrencies as a mode of payment for various goods and services.
From shopping to paying bills, digital assets are welcomed in a lot of places. It can also be used for iGaming. Stories such as Domino’s Pizza, Gyft, Microsoft and more now accept digital payments.
Cryptocurrency will replace cash
A lot of people were alarmed when they figured that digital currencies have taken over the market and are gaining traction worldwide. Even to the extent that some thought that cryptocurrencies would replace fiat currency. This is not going to happen anytime soon since digital currencies were made as an additional means for people to have convenient and secure transactions that they choose to use depending on their needs and wants.
Cryptocurrency is only used for an illegal transaction
Cryptocurrency’s decentralised nature is one of the things that make it ‘illegal’ for people who are not well-informed. Additionally, news about digital assets being used in black markets negatively coloured the perception of the public. However, the same thing could be said about fiat.
Now with the possibility of crypto being used in these kinds of activities, more countries are implementing anti-money laundering laws and regulations on digital assets.
Cryptocurrency is not for everyone
Because of its unfamiliar technology, many people believe that cryptocurrencies are not for everyone. While there is some truth to this, there are sites and people devoted to making information on digital assets more accessible and digestible for the common man.
If you do your research, you can find articles, books, and videos available to help you understand the basic concepts and terminologies in the crypto sphere.
Additionally, you can join crypto communities on various social media platforms and learn about the ever-changing world of cryptocurrencies.