What Are The Biggest Crypto Myths?
Should I believe or should I not?
As crypto continues to grow in popularity worldwide, now is a great time to look at some of the biggest myths and rumors about it.
If you’ve ever wondered if crypto is a shady scheme, we’ve done the research to help you figure out what’s true and what’s not.
Myth: Bitcoin and the Blockchain may be used interchangeably
People don’t really know what a blockchain is, which has led to many false ideas about it. A blockchain is like a digital ledger used to build and trade cryptocurrencies. Even though there are exceptions, each cryptocurrency has its blockchain, the only place it can be traded. It means that you couldn’t go to the Ethereum blockchain and trade Bitcoin on it or vice versa.
Also, remember that each blockchain works differently. In the case of Bitcoin, for example, the blockchain is designed to make Bitcoin work like digital cash. On the other hand, Ethereum was made so that developers could create peer-to-peer apps that don’t need an intermediary besides the blockchain.
Shortly, the blockchain is not the same thing as a cryptocurrency. Instead, it is a platform that lets you use cryptocurrency.
Myth: Blockchain works only for digital money
Again, many tend to have the wrong idea about what the blockchain really is. It’s not just an online wallet for cryptocurrencies; it’s a whole platform that can do many things. People are also coming up with new ideas for the blockchain that give it more capabilities.
The fact that it can host contracts between two or more parties is an excellent example of how the blockchain can do more than just store and trade cryptocurrency. It can be beneficial in many situations, like storing the contract between a loan company and the person getting the loan. Then, if you want, it can make the loan payments happen independently.
Myth: Bitcoin is not subject to regulation
When cryptocurrencies first came out, it was like the wild west because there were no laws or rules to control them. As a result, some people were skeptical because they thought governments would ban cryptocurrencies instead of regulating them. But as time has passed, things have started to change, and governments are now looking for ways to regulate cryptocurrency instead of outright banning it.
One reason for this approach is those big companies like Amazon, Dell, and Twitch that now accept cryptocurrencies as payment. Since these companies have a lot of power in many countries, governments worldwide are more likely to work with cryptocurrencies instead of against them.
Myth: Cryptocurrencies are illegal in places that don’t regulate them
Even if there are no rules about something, that doesn’t make it illegal, right? The most important thing to remember is that if you aren’t sure if cryptocurrencies are legal or regulated in your area, a lot of information can help you find out. Just make sure to get your information from a reliable source, as you would with anything legal.
Myth: Using cryptocurrency is entirely anonymous
Some people think using cryptocurrency makes you anonymous, which is why they link it to illegal activities. In reality, it doesn’t, at least not entirely. Even though cryptocurrency makes it hard to track transactions and find out who someone is, it is possible to do so because all transactions are recorded on the blockchain.
If privacy is important to you, you should be happy to know that cryptocurrency is one of the safest ways to pay in the world. It lets you do business without worrying that hackers or other undesirable people will get your information and figure out who you are.
It means that the best way to protect your identity while using cryptocurrency is to follow basic Internet safety rules, like choosing a strong password, being careful about which networks you use, and not clicking on links in emails that look suspicious.
Conclusion
Finally, we can state that the myths described above are far from complete, and there are many more misconceptions or beliefs that will cast a poor light on cryptocurrency. So, before investing in crypto, you should think twice and check all the facts and myths about digital currency.