India is surely a land of myths and stories, but not all of them are true. Usually, people are compelled to consider these extensively believed myths as reality. We should be very careful around these fables if we do not want to fall into trouble. Cryptocurrency is one field of business about which people are very skeptical and believe whatever is said because they want to secure their identity and money. Not a lot of people are aware of the working systems of Cryptocurrency and blockchains, which is why they are led into believing these baseless stories.
If you are still unfamiliar with the term ‘Cryptocurrency’ and all that you are reading sounds Greek to you, Cryptocurrency is a digitally created asset mainly used as a medium of exchange for transactions. The most famous of these currencies is Bitcoin, which is a digital currency without a central bank or an administrator. Don’t be surprised if I tell you, at the end of the second quarter of 2019, there were around 330,731 Bitcoin transactions recorded daily worldwide.
We have enlisted the most common myths around Cryptocurrency and their usage. Are you guilty of believing these? Let’s find out.
Cryptocurrency is an illusion
The most common myth about crypto is that it is an illusion. It does not have real monetary value because we cannot materialize it. Of course, this is not true. Cryptocurrency is real and it can be used to pay for real things. It is backed by mathematics and the laws of demand and supply. For instance, we cannot touch the cash in a credit card. Does it mean that it has no cash? No. The same goes for crypto. Just because they are records does not mean that they are imaginary. In fact, big tech giants like Microsoft also accept Cryptocurrency. If you don’t believe us, take a look at the exchange values of a Bitcoin. In India, the value of 1 Bitcoin is approximately 7.3 lakh.
Cryptocurrency = Anonymity
This is the most dangerous myth around Cryptocurrency which you should immediately be thrown out of the window. Since blockchains are a public ledger, they can provide you with anonymity up to a certain point. In general, both are quite traceable, because if the wallet of a person can be identified, the person’s identity can also be disclosed based on his account activity. Usually, it is difficult to trace a bitcoin transaction, but not impossible. So, it is definitely not the currency for criminals and underworld activists.
Crypto is the art of techies
Another big-time myth. It is not necessary for you to be a genius with technology to use Cryptocurrency wisely. A sense of personal responsibility and thirst for knowledge of cryptography is enough. The existence of this myth in the first place is because the whole system of crypto is based on complicated math. If you are clueless about how to begin with it, you can browse from a variety of online tutorials and e-courses, which will help you understand the concept of cryptography, creation of wallets and ways to conduct smart transactions. It hasn’t been any easier and after all, cryptocurrency transactions don’t demand a degree.
Cryptocurrency and money are different
What makes the currency a currency? It is a unit of measure and will always remain one. Crypto is also a unit of measure but in non-material terms. Bitcoins can be used as normal coins and many big companies accept Cryptocurrency as a medium of transaction. Another inter-linked myth is that this currency will not be accepted in any store. Absolutely, wrong. Cryptocurrency is as real as normal currency and also holds value, stores around the world accept digital money in exchange of products and services.
Crypto means unsafe and late investment
Absolutely, NO! Initially, crypto was seen as a volatile medium which could be damaged easily in case of a security breach, which is why investments made in crypto were not considered safe. Investment is always risky, and its returns can alter anytime, so it is an injustice to put the entire blame on digital currency, as change is the nature of the investment. Also, with the information doing the rounds that the value of the Bitcoin is falling, yes, it is, but it is still not too late to crypto-invest. Look for alternatives to Bitcoin which are easy on your pocket and relax because crypto is here to stay!
The easiest way of money-making
Another myth rotating in the orbit of blockchains is that crypto is the easiest way to make money. No dear, the world is not so easy. Remember when parents used to say that we shouldn’t waste money because it is hard-earned? No form of money-making is easy. Cryptocurrency is the most unpredictable market; the fall or rise in the prices cannot be analyzed. It totally depends on your luck and the amount of money you have invested. It can either be a return you never expected or fall from the mountains. Also its high time, the myth that you don’t need to pay taxes in return of bitcoins must be busted. If you’re making money on Bitcoin, you have to pay a tax on that. There is no getting away with this.
Blockchain is the key to forever change in transactions
This is not totally a myth. There is a partial truth attached to it. Yes, with the advanced technology and easy transactions of Cryptocurrency and Blockchain, business transactions will experience a change and the way they are done might become better. But the basic part of a transaction will not change, cards and cash will still be accepted. The alternative which can be formulated is that crypto can be used alongside cash and cards. So, it is a half myth and half-truth which depends on the preferences and engagement pattern of the future generations.
We’ve now busted the most popular folk tales surrounding the region of Cryptocurrency and blockchain. If you are still confused, I would advise expert guidance – they will keep you aware of the functioning of the cryptocurrency market and prevent you from the trap of myths! Sites like www.top10cryptobots.com are the perfect place for getting authentic information about cryptocurrency.
Bitcoin, though the most famous of the lot, is not the only crypto available. There are over 1,500 tokens and coins which can be used as crypto money like Ethereum, Litecoin, Ripple, etc. So, once you decide to take the risk, both the gains and losses are on your shoulders. Do your own research, read materials available online and think rationally before taking any step ahead.