Despite the fact that cryptocurrency and blockchain have gained in popularity in recent years as new kinds of digital currency, they have really been available for more than a decade. Some people believe them to be intriguing investment opportunities, but they do necessitate a certain level of technological know-how. As a result of the abundance of cryptographic jargon, acronyms, and other unusual terms found in the industry. It can be extremely bewildering.
In this article, we’ll go even further and eliminate some of the most prevalent crypto-myths that are now circulating in the crypto-sphere.
Myth 1: Use of crypto is for unlawful or criminal purposes
Although the ease with which bitcoin may be transferred makes. It’s enticing to criminals, Chainalysis analysis shows that cryptocurrency-related crime will drop drastically in 2021. Approximately 54% of all cryptocurrency-related criminal activity was committed through scams last year. The rise in ransomware attacks is the most worrisome development. Therefore, global governments are putting together task forces to deal specifically with crypto-crime and advancing legislation in this direction.
Myth 2: Cryptocurrencies are worthless
A cryptocurrency is a digital asset that can be exchanged for goods or services. And its value is determined by how its holders value it. The cryptocurrency is currently in a “price discovery” phase, comparable to that of gold during the 1970s. During which large swings up and down are usual. And according to studies, bitcoins do indeed have some inherent worth based on the marginal cost of manufacturing new bitcoins. Bitcoin’s price is frequently in the vicinity of this cost. Which rises as the mining network grows in size and falls as the block reward diminishes over time.
Myth 3: Crypto transactions are anonymous
Many people believe that all cryptocurrency transactions are entirely anonymous. Pseudonymous cryptocurrency wallets are more common than anonymous ones; a pseudonym is a moniker given to you by your wallet. Your cryptocurrency wallet address can be monitored even if your name is hidden from the public eye. Many government agencies have completed the mapping of addresses to their owners with the help of numerous exchanges. Even if the wallet owners are disguised behind a messy string of numbers and letters. Everyone can witness crypto transactions on wallets because they are recorded on the blockchain.
Myth 4: Cryptocurrencies are just a bubble that will burst
Despite the fact that they are still volatile and may not offer the finest investing prospects. Cryptocurrencies are generating fundamental changes in the worlds of money and finance. Their efforts to increase access to savings and credit products are helping to democratize finance and improve the lives of the poorest households. Small-scale enterprises can obtain financing from various sources other than banks, which tend to have strict loan underwriting and collateral requirements for their loans. And internal and international payments will be less expensive and more efficient, which would help consumers, companies, and even economic migrants returning to their home countries.