There is no denying that cryptos are in the market for quite a long time. Despite that, a lot of individuals around the world are still confused regarding its system. In connection to that, this is mainly because a lot of common myths and misconceptions about it are being taken by individuals seriously.
In this post, we are going to provide you some myths and misconceptions related to cryptocurrencies that you need to know before entering the world of crypto.
Read on to know further.
Cryptocurrencies are Unregulated
You have probably known that most forms of cryptocurrencies are not regulated by the government during its early years. But considering that change is constant, several changes happened in this case.
These days, most countries that adopt cryptocurrencies have created necessary steps to ensure that all the crypto trading and transactions are regulated.
Crypto followers should know that these regulations do not bring negatives to the network.
When there is an improvement in its regulations, more people will trust most cryptocurrencies that can result in its mass adoption without any problems.
Also Read: Myths About Bitcoin
Cryptocurrencies are Completely Anonymous
Technically, cryptocurrencies are considered an anonymous network. Aside from that, the users’ identities used for transactions are partly encrypted.
On the other hand, all the transactions happening in any form of cryptocurrency are transparent and public. This means that those are traceable by anyone. For more information, you can visit here Crypto Revolt.
In other words, crypto indeed offers pseudo-anonymity. But it is not a good idea to assume that all aspects happening in the world of crypto is guaranteed completely anonymous.
Cryptocurrencies are Mostly Used for Illegal Activities
For the past few years, the dark web has linked cryptocurrencies to various illegal activities.
Well, it is partly true that most forms of cryptos are used for some bad activities. The assumptions of people regarding these “bad activities” are completely wrong.
There is more than 820 million US Dollar worth of Bitcoin transactions that were used for illegal elicits last year.
People think that the amount is huge. The truth is it only contributes 0.5 percent of the overall transactions that happened in the Bitcoin network.
Cryptocurrencies Have No Value
One of the common misconceptions about cryptocurrency is that a lot think that it is valueless. This myth can be associated with the real situation: material assets are not backed by other cryptos.
Considering that no form of cryptocurrency back material assets is not enough to prove that they don’t have value.
Take note that value has a subjective meaning. Also, material assets do not support most types of fiat currencies circulating in the real world.
In addition to that, a few cryptocurrencies these days are already tied to fiat money or backed by real material assets.
For instance, the Bitcoin token is associated with the value of the US Dollar.
Also Read: Working Of Bitcoin Transactions
Cryptocurrencies will be Banned
A few countries in the world do not adopt or already banned cryptocurrencies in different ways, including outlawing mining, restricting usage, and banning exchanges.
In connection to that, crypto followers think that most cryptocurrencies will be banned in the coming years.
One can predict the future. But most countries worldwide have seen the potentials of cryptocurrencies with their improved regulations.
A lot of developed countries have their stand toward cryptos. These countries include Australia, the European Union, Finland, and the United States.
Those are some of the common myths and misconceptions related to cryptocurrencies. Take note of each one of them as you may encounter it on the day you have decided to enter the world of cryptocurrencies.
Knowing these misconceptions will enable you to determine the real data from the false information regarding cryptos.