Debunking Cryptocurrency Myths

Debunking Cryptocurrency
Debunking Cryptocurrency

Don’t let the common misconceptions about crypto lead you to become one of the unbelievers. Millions disbelieve that they can earn millions from investing with a smart angle.

The common myths stopping cryptocurrency investors are still lingering in 2023. These myths were first encountered due to the newness of crypto and the direction fiat currencies were in.

It’s all a Fad

The first of the myths about crypto were about its legacy. “Here today and gone today,” is the adage we use to describe such wonders. What bitcoin achieved over 10 years, however, still fascinates the skeptics.

One thing holding true are the 5,000 plus altcoins that investors can now buy instead of bitcoin. This is no fad, but if it ever becomes one, expect prices to go higher.

In fact, Australia’s Finance Minister, Jane Hume, spoke at an Australian Financial Review summit on Monday, saying cryptocurrency was “not going away any time soon”, regardless of people’s views on it.

“So as an industry, and as a government, we need to acknowledge this is not a fad. We should tread cautiously, but not fearfully,” she said, comparing cryptocurrency to previous technology disruptions.

“Don’t be the person who thought the iPhone would never take off because people would prefer to have their music and telephone on separate devices. Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream. And don’t be the person who argued that email was a passing fad.”

They’re Illicit

No one can define crypto without examining its past. We define bitcoin and its blockchain as decentralized and anonymous. Such features enable the black market of the “dark web” to cheat in secret.

Like any theft or bribery, digital money can be abused like fiat currencies are. Just don’t allow the crimes of a select few to grim the image of what crypto is to society today.

They Aren’t Secure

Almost anything that’s activated online can be infiltrated today. What we also know is that the world’s “example blockchain” still hasn’t been hacked. Yes, people can steal your coins in the same manner as a purse or wallet.

The protection of your assets, in this case, isn’t via a bank or secure broker. You just have to keep your coins safe and from hacks yourself.

As MacKenzieSigalos wrote in an NBC News piece, Scammers took home a record $14 billion in cryptocurrency in 2021, thanks in large part to the rise of decentralized finance (DeFi) platforms, according to new data from blockchain analytics firm Chain analysis.

Losses from crypto-related crime rose 79 percent from a year earlier, driven by a spike in theft and scams.

Scamming was the greatest form of cryptocurrency-based crime in 2021, followed by theft — most of which occurred through hacking of cryptocurrency businesses. The firm says that DeFi is a big part of the story for both, in yet another warning for those dabbling in this emerging segment of the crypto industry.

They’re all Related to Scams

Investors have to know what to look for. Above all, they must realize that one bad outcome doesn’t establish the general norm.

What you need to know are the likely ways and channels that scammers use. The scams most related to crypto gain ground via sales like initial coin offerings (ICOs). Other scams are marketers with wild stories to get you to spend your coins.

It’s Not Real Money

Contrary to how Warren Buffet feels, people’s use of it does put intrinsic and purchasable value into cryptocurrency.

At this point, more than 15,000 businesses, which include Apple and Microsoft, accept bitcoin payments. These brands, being in business only to profit, are also conceding. They know that crypto converts into fiat and therefore has value in any exchange.

The pace that the crypto industry grows at is enough to result in some misconceptions. For the investor, however, this is a time to throw doubt away.

Wall Street began embracing crypto in December of 2017 after CME released the first ever Bitcoin futures.

Top investors not only see the value their store of coins can increase to. They recognize that the entire world is enthralled by this technology. Its popularity and use are only expanding, and the myths are dying out.

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