Debunking Myths about Cryptocurrency

Myths about Cryptocurrency

Cryptocurrencies are surging to all-time highs and getting mainstream acceptance after all these years; hence people are more curious about it than ever. With the progress of cryptocurrencies such as Bitcoin, Litecoin, Ethereum and Tether come many myths that people believe to be true, but in reality, they are nothing less than a fib.

In this article, we are exposing and debunking all the absurd myths about cryptocurrencies. We will provide you with reasons to consider investing in cryptocurrency as it is the future of the world since users can easily invest and buy Tether or other cryptocurrencies. 

It is illegal to buy and invest in cryptocurrency:

One misconception that floats around is that it is illegal to trade and invest in cryptocurrency. In most parts of the world, cryptocurrency is not yet regulated, which means that the government has not made rules and regulations for crypto users, but it is not illegal or banned. You can freely buy, sell and trade cryptocurrency anywhere in the world except for Egypt, Iraq, Qatar, Oman, Morocco, Algeria, Tunisia, Bangladesh, and China, as they have all banned cryptocurrency. However, more than 103 countries have regulated cryptocurrencies and their use.

Cryptocurrencies are mainly used for illicit activities such as terrorism, drug activities, and money laundering:

Like traditional cash and banking systems, cryptocurrency can also be used for illegal purposes. But the myth that cryptocurrency is jam-packed with nefarious activities is certainly untrue. According to a Chainalysis report, illegal activity accounted only for $10 billion, or 1%, of all cryptocurrency transactions last year, down from nearly $20 billion, or 2%, in 2019.

While it is true that some features of cryptocurrency, including the anonymity aspect, could be used by individuals having criminal intentions, the main thing to remember is that these transactions are illegal, not cryptocurrency itself. Criminals use fiat currencies for illicit purposes more than they use cryptocurrency. Moreover, KYC (Know Your Customer) checklist is being used in the cryptocurrency market to reduce these risks.

Cryptocurrencies are not secure:

Since the rapid growth of cryptocurrencies has attracted immense attention, there have been some high-profile thefts and scams. However, most of them happened because of the carelessness of investors and users. Users should remember that the security of wallet keys and their holdings is in their own hands. Investors should keep private keys in a safe place, out of reach of anyone else, even friends and family.

Yes, cryptocurrencies might get attacked, but if proper security measures are taken, cryptocurrencies and blockchain technology can prove to be one of the world’s most secure and safe assets. Governments and institutional investors worldwide have shown interest in cryptocurrency because of its secure and transparent nature.

Cryptocurrency Trading is too complex:

Just like at school, a subject might seem a little hard for you to understand, but you just need a little time and patience. With the right tools and strategies, cryptocurrency trading and investing will feel like a piece of cake. Many free websites and apps provide free lessons and help you become a better trader in just a few days. However, always be careful while using these educational tools and trading platforms since the Internet contains false information.

Crypto is a bubble and will fade out soon:

Some people thought Thomas Edison’s development of the first light bulb wasn’t worth their time and attention. Isn’t that insane? It’s reasonable to be skeptical about innovations, as with many others. Take, for example, the light bulb or the Internet. Both were once dismissed as fads, yet we now can’t imagine life without them. Jeremy Allaire, the CEO of digital currency business Circle, predicted in 2016 that no one would use Bitcoin in five to ten years. Recently, he spent hundreds of dollars on Bitcoins in 2022. It’s better to get into cryptocurrencies immediately if you don’t want to be left behind.

Cryptocurrencies consume a lot of energy resources:

Yes, cryptocurrencies used to consume energy extensively, but not anymore. Cryptocurrency miners and developers are working hard to make it eco-friendly and prevent the waste of energy resources. Energy costs are continually being brought down. Moreover, global governments are working together to use renewables as a source of energy to minimize energy costs to a minimal level so that it won’t be a matter of concern.