Cryptocurrency Myth-Busters
Cryptocurrency Myth-Busters
Bitcoin, etherreum and other cryptocurrencies have been a hot topic for years. The truth about cryptocurrencies is finally starting to emerge as more people are becoming aware of the benefits (and sometimes pitfalls) of these digital assets.
Many people still believe that cryptocurrencies are only used for illegal activities or that they are just another bubble waiting to pop. These myths need to be dispelled once and for all so that the world can truly understand what they are and how they work.
Let’s debunk the most common myths about cryptocurrencies.
Myth # 1 : Cryptocurrencies are used for money-laundering, drug-peddling and a host of illegal activities.
Truth: There are always 2 sides of a coin. If anything, cryptocurrencies are actually safer than traditional currencies because they don’t require an intermediary who can be hacked or manipulated (like banks). Because of this transparency, people have access to real-time data about transactions. Law enforcement agencies can easily track information pertaining to dubious transactions if they understand the nuances of block-chain technology.
While there may be some criminals who use bitcoin as a way to avoid detection when they transfer money illegally, it’s not true that Bitcoin is only used by criminals or drug dealers in general. Worthwhile to state that fiat currencies are no more above board in being misused for illegal activities. Today many legitimate businesses accept Bitcoin as payment because it enables them to save money on transaction fees that credit card companies charge them! As of November 2020, the giant pizza franchise Pizza Hut can be now purchased and paid for with Bitcoin in Venezuela. https://www.coindesk.com/business/2020/11/30/pizza-hut-venezuela-now-accepts-crypto-payments/
There are many legitimate uses for cryptocurrencies like Bitcoin, including investing in startups or using them as payment options on websites like Amazon or eBay. They’re also useful for transferring money across borders without incurring fees from banks or governments who regulate currencies like dollars or euros.
While some countries like China have banned cryptocurrencies altogether, most countries have not banned them or made them illegal to own. In fact, governments all over the world are starting to consider how they can use cryptocurrencies to benefit their citizens. The most benevolent side of crypto benefits in the recent past were witnessed the worldover when an eminent rockstar raised funds to expedite relief work for the millions of homeless earthquake victims in Turkey (a country which had otherwise banned cryptocurrency).
Myth # 2 : Cryptocurrency is a bubble waiting to burst.
Truth: While it’s true that the value of cryptocurrencies has risen significantly in recent years, they’re still far from their peak value in late 2021. If you look at it as an investment vehicle, it can be very lucrative if you buy at the right time and sell at the right time—just like any other investment! Cryptocurrencies are valued by supply and demand. If enough people want to use them, then their value will rise. This means that even if the currency’s price falls at first when it’s introduced to the market (as with bitcoin), it can still rise over time as more people buy into it. It is as speculative as the investors that put their money in it.
Myth # 3 : Cryptocurrency prices will drop soon because no one wants them anymore.
Truth: While this may have been true in the past couple years when there was a lot of hype surrounding cryptocurrencies (which drove up their value), now that we’re seeing more acceptance from governments and businesses around the world, it’s unlikely that they’ll lose popularity anytime soon—especially since they’re much safer than traditional currencies!
The rising popularity of cryptocurrency can be seen in its wide acceptance in various avatars like NFT’s(Bored Ape Yacht Club,Clock,Doodles) , games(Axie Infinity,The Sandbox,Decentraland), Metaverse(Ape coin, Internet Computer).
Myth # 4: Cryptocurrencies are volatile.
Truth: The volatility of a cryptocurrency is related to its acceptance by merchants and consumers. As more businesses accept cryptocurrencies as a form of payment, their value will stabilize. In fact, today you cryptocurrencies like Bitcoin can be used to purchase anything ranging from a burger and beverage to a piece of real estate!
Our readers in Dubai will be thrilled to know more about eateries that accept payment in cryptocurrencies.
(https://www.timeoutdubai.com/food-drink/features/cryptocurrency-in-dubai#:~:text=You%20can%20now%20pay%20with%20cryptocurrency%20at%20Caf%C3%A9%20Beirut.%20%2C%20which,stunning%20views%20of%20Burj%20Khalifa)
One of the most reputed business conglomerates in Dubai, Majid Al Futtaim has partnered with Binance and accepts cryptocurrency in 29 of their shopping malls and 13 hotels! (https://news.bitcoin.com/dubais-retail-giant-majid-al-futtaim-accepts-crypto-at-29-shopping-malls-and-13-hotels-in-partnership-with-binance/
Myth # 5: Cryptocurrencies are not secure enough for everyday transactions.
Truth: The security of any cryptocurrency depends on whether you store your funds on an exchange or in a wallet that you own yourself (which is called “hot” storage). If you store your funds on an exchange, you can be susceptible to hacking and theft. However, if you use a wallet like MyEtherWallet or TREZOR hardware wallet, then your funds will be much safer because they’re stored offline in cold storage.
Myth # 6: Cryptocurrency is illegal.
Truth: Cryptocurrencies like Bitcoin are getting legal recognition in many countries like Germany, Denmark, Japan though they may not be regulated. That means that governments are not keeping track of how people use it or what they do with it, so there is no official regulation. Despite that cryptocurrencies like Bitcoin, Ethereum, Litecoin, and BitcoinCash are gaining acceptability in the Middle East, Africa, Asia and many countries in Europe.
Myth # 7: Cryptocurrency transactions require more personal information than traditional bank transactions.
Truth: All transactions are anonymous unless you choose to give away your personal information. The only time that you would need to provide your identity again is if you’re using an exchange platform or wallet service where they have KYC (Know Your Customer) policies in place .The identity of Satoshi Nakamoto [the creator(s) of Bitcoin] still being unknown is the biggest proof of how secure personal information is in the crypto market place!
Myth # 8 : Cryptocurrencies can be hacked.
Truth: There have been many reports over the past few months about hackers stealing millions of dollars worth of cryptocurrency from exchanges like Mt Gox and Bitfinex. However, these hacks were due to poor security protocols on behalf of those companies rather than any inherent flaw with blockchain technology itself.
The basic premise of cryptocurrency is blockchain technology – which actually makes it more secure and transparent than quite a few banking networks across the world. If anything, it is these networks that are prone to being hacked vis a vis crypto blockchain. As per reports from a leading daily in India, cyber criminals hacked into the servers of a bank (AP Mahesh Cooperative Urban Bank), and managed to siphon Rs. 12 crore (1.45 million dollars) to various accounts!
Myth # 9 : Cryptocurrencies are not real money.
Truth: Cryptocurrencies are the future of money. In fact, they’re already here! Cryptocurrencies are a form of digital money that can be used to make payments online or offline. They are decentralized, meaning they are not controlled by any bank or government. They are also highly secure and anonymous. It’s just a matter of time before they become mainstream.
Myth # 10 – Cryptocurrencies are not safe to invest in.
Truth: Investing in cryptocurrencies is extremely safe and secure. In fact, you don’t have to worry about being scammed because every transaction is transparent and you can see exactly how much money you have invested in each coin. It is always better to research properly prior investing.
Myth # 11 : Cryptocurrencies are a Ponzi scheme.
Truth: This is not true. A Ponzi scheme requires a central authority to exist, and cryptocurrencies are decentralized. The blockchain technology that supports them is public and distributed, meaning that no one person or group has control over it. This makes crypto coins extremely difficult to counterfeit.
The technology behind cryptocurrency is also completely transparent—all transactions can be viewed by anyone on the blockchain network at any time. In fact, most cryptocurrencies require full transparency in order to prevent fraud and ensure the integrity of their systems.
Myth # 12 : Cryptocurrencies are anonymous.
Truth: Not quite! While cryptocurrencies aren’t controlled by a central bank or government agency, they do have some inherent anonymity features that make them attractive to criminals who want to hide their activities from law enforcement officers. However, since all transactions on the blockchain network are publically available for anyone to see at any time, it’s actually pretty easy for investigators to track down criminals who use cryptocurrencies as part of their illegal schemes – as long as they know how to look!
It is noteworthy to emphasize that the popularization of cryptodiversification only began in 2010, during the creation of Bitcoin and the development of other cryptocurrencies. Since then, hundreds of cryptocurrencies have been created. Their capitalization at the beginning of 2023 exceeded $2 billion. In addition to this, transaction volumes have reached nearly 4 billion dollars and is growing rapidly, despite the fact that most people do not understand anything about virtual currencies. So it can be said that a new page in monetary and financial relations has been turned.
In conclusion it can be stated that cryptocurrencies are as good or as bad as their conventional fiat counterparts, for the true power of a sword lies in the hands that wield it.
