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In recent years, the topic of cryptocurrencies has become very popular. Probably everyone has heard the name “Bitcoin”. For some, it is a good way to earn money, for some a temporary fashion, and for others it is another scam invented by criminals. Many theories have arisen around the topic. Unfortunately, they have gained popularity according to the saying that a lie repeated enough often becomes the truth. What are the most popular myths about cryptocurrencies?
Cryptocurrencies are a topic for specialists
This is perhaps the most important reason why people outside the cryptocurrency community feel reluctant and fearful about the topic. The old truth is that people are afraid of what they don’t know. The same anxiety accompanies children who are about to get on a bicycle for the first time. Likewise, people feared the introduction of ordinary coins first, and then electronic payments. Today, making transfers via the Internet and paying with a credit or debit card is common, although a dozen or so years ago it seemed impossible. It is similar with cryptocurrencies. You don’t have to be an IT genius to learn about virtual coins. All you need is interest and practice.
Big organizations are against cryptocurrencies
It is a myth that can be debunked very easily – if cryptocurrencies were not supported, the entire system would have collapsed long ago. It is true, however, that state institutions are afraid of the dissemination of virtual money, because this could threaten the current financial system, and thus, offices would lose their power over money. A distributed network allows the entire community to control cryptocurrencies.
However, over time, this approach also began to change. This can be confirmed by the fact that PayPal has introduced the option to buy, store and sell assets through their system. In the US, you can already pay with virtual money for passport services, and the Central Bank of the Bahamas has created a cryptographic version of the Bahamian dollar.
Cryptocurrencies are completely anonymous
This belief arose from the fact that no personal information is required to perform transactions with cryptocurrencies. While there are coins like Monero, which are called “the most anonymous cryptocurrency”, in fact, transactions involve transferring funds from one public address to another. This means that you can easily check the recipient and sender details as well as transaction details.
Cryptocurrencies are money from the criminal world
This is coupled with the belief that cryptocurrency transactions are anonymous and untraceable. According to research, criminals most often use US dollars in cash. Cryptocurrencies are not common enough to be an easier means of financing than cash or electronic money.
Organizations are responsible for cryptocurrencies
On the contrary. Cryptocurrencies are designed to decentralize the network, which means that the system is controlled and operated by independent entities from around the world. Each user can mine new blocks. No complicated equipment is needed for this. In addition, most cryptocurrencies are created on an open source system – anyone interested can freely research, modify and distribute it.
Bitcoin and blockchain are the same
These terms are usually confused by people who are just starting their adventure with cryptocurrencies. In fact, the blockchain technology has been included in the so-called The whitepaper of the Bitcoin project, however, the technology has spread over time and is being developed by subsequent creators. Currently, most types of cryptocurrencies are based on blockchain. This project is also used in many places not related to virtual money.
These are just some of the most common myths around cryptocurrency. They usually result from ignorance. Unfortunately, they are harmful because they effectively discourage new people from the topic, thus inhibiting its development.
The article was developed in cooperation with the gielda-kryptowaluty.pl portal where you will find all the necessary information for both beginners and more advanced people in the world of cryptocurrencies.