5 Popular Cryptocurrency Myths You Should Know The popularity of cryptocurrency has increased significantly since 2009 when it was introduced. They are a bit mysterious and are difficult to comprehend This confusion can lead to stories and myths about digital currency.
In this article, we’re going to look at some of the more commonly-cited crypto-related myths, and then provide an analysis of the facts that will help you decide whether there’s any real or falsehood in them.
Myth #1 Cryptocurrency Myths is real money that can be used for transactions
Major cryptocurrencies like bitcoin and Ethereum were developed as a method of making payments without the need for traditional payment methods such as bills, debit cards checks, or credit cards. Bitcoin’s whitepaper which triggered this cryptocurrency takeover envisages an electronic payment system that permits “any two willing parties to transact directly with each other without the need for a trusted third party,” taking banks and governments out completely from financial pressure.
It has become extremely expensive and difficult to carry out transactions using cryptocurrency. It takes around 10-15 minutes for bitcoin transactions to be confirmed and the cost for one transaction was in the past about $20.
Myth #2: Digital Currencies Don’t Have Value
It is an arbitrary term. An individual, community, or society could consider an object to be valuable that another person throws in the recycling bin. For instance, the initial cryptocurrency called Bitcoin is valued just after its introduction in 2009, in milliseconds percent of a cent. The bitcoin price continued to grow in 2021, it was valued at around $69,000 per Bitcoin. And now in 2022, most experts predict an increase of $28,000 in the bitcoin price by the end of this year.
Ethereum is the blockchain platform that powers ETH cryptocurrency and is the foundation for non-fungible currency, decentralized financial applications, as well as other technological advances regarding the ownership of assets digitally. ETH might not have the same value in dollars as Bitcoin has, but its potential and utility give the potential for a lot more worth to companies that are creating solutions for financial services and products that utilize the ETH blockchain and smart contracts.
Myth #3: Cryptocurrencies can be a great investment
Everyone knows people who have made money through cryptocurrency, and hearing about it from a variety of people makes it clear that crypto investing is the best way to make money fast. However, people are investing their money into crypto, without understanding the consequences.
A study by Alto also shows that 39% of millennials own cryptocurrency, more than those who own mutual funds and cryptocurrency stocks. The greater risk-averseness of millennials naturally pulls them to invest in crypto.
While all investments come with a risk, it’s crucial to know the risks and perform thorough research on what you’re doing prior to investing in crypto instead of treating it as an easy-to-make-money scheme.
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Myth #4: Cryptocurrencies are a scam sometimes
Cryptocurrencies are now a common method of exchange in many retailers and businesses. Customers are using them for private transactions, and governments are looking for ways to control the use of these currencies. The majority of cryptocurrency do not have codes, programming, or malicious purpose that is designed to steal cash from your account.
However, there have been a number of scams in order to fool you into giving away your money or cryptocurrency. For example, there have been many initial coin offerings–unregulated fundraising for new cryptocurrency ventures–that turned out to be scams. In other scams using cryptocurrency people may be trying to convince you to sign up for unauthentic transactions or even call you claiming to be officials from the government and request that you pay off your debts with cryptocurrency.
Myth #5: Cryptocurrencies will replace the Dollar
They are not secured by anything else than the trust of the owners. The dollar, on the other hand, is backed by the U.S. government. Investors are still able to believe in the dollar, even during difficult times. For instance, foreign and domestic investors continue to swoop huge amounts of dollars worth of U.S. Treasury securities even with low-interest rates.
The new stablecoins, or cryptocurrencies, are designed to maintain their value over time and thus make it simpler to make digital payments. Facebook plans to launch its own cryptocurrency, known as Diem which will be backed one to one by U.S. dollars, giving its value a steady level. However, the strength of stablecoins is derived due to their backing by the government-issued currency. Although dollars may not be as relevant in making payments, the value of the U.S. dollar as an asset cannot be ignored.