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Digital currencies have experienced a massive expansion in terms of popularity and acceptance. However, digital currencies are not public regarding transaction history and exchange details, making digital currencies challenging to understand. Not everyone is familiar with the concept of digital currencies despite their immense popularity, which has led to many rumors and myths regarding digital currencies.
Cryptocurrency myths usually create a situation of fear and doubt, making paper hands more vulnerable. To get you started first you need to know why crypto trading is a worthy investment. Below listed are some of the famous cryptocurrency myths that you should be familiar with, so let’s have a deep dive into cryptocurrency myths and rumors.
The majority of cryptocurrency transactions are not used in illegal activities.
Cryptocurrency can act as a great store of value and is also very secure if the user takes proper security measures.
Theoretically, cryptocurrencies are a form of exchange but do not comprise a physical existence. In short, bitcoin does not look like the coin with the Thailand B symbol you saw in the internet pictures.
Cryptocurrency is not just an emerging trend, and people are exploring different use cases of this technology.
Myth 1- Cryptocurrencies are only for funding illegal activities!
Undeniably, people used this cryptocurrency to buy illicit drugs from the dark web when people were unaware of bitcoin’s concept. But the use of bitcoin or any mainstream cryptocurrency is limited to fund only illicit activities is a pure myth.
As the majority of the cryptocurrency transactions are used for clean activities, even fiat currencies are being used to fund illegal activities to some extent. But that does not mean the use case of fiat currencies is only limited to funding such activities.
in 2017, many enterprises, companies, and local businesses decided to accept bitcoin payments. However, after the market crash of 2018, many companies backed out of their decisions. But now, many companies have come around to make bitcoin an exchange method in their ecosystem.
The two prominent reasons behind a wild acceptance of this digital currency in mainstream companies, local businesses and other enterprises are the addition of lightning networks to make digital currencies more scalable. All the more digital currencies are meant to be limited to a particular financial sector space. A minimal amount of cryptocurrency transactions contribute to funding illegal activities, and the majority of these transactions include privacy-focused digital currencies.
Cryptocurrencies don’t have value!
An ancient cryptocurrency myth is that digital currencies are nothing but a fad and don’t have a real-life value. However, as discussed above, the number of merchants accepting bitcoin payments keeps increasing every day. It depicts that cryptocurrencies have a massive real-life value. Bitcoin had a nominal value the time it was launched, but when it became popular, this coin’s value started to rise, leading to more cryptocurrency inventions. Cryptocurrency marketable acquired a gem like ethereum due to bitcoin technology as ethereum is now facilitating decentralized application to a massive extent.
Myth 3- Cryptocurrency lacks security!
The core technology of bitcoin and every digital currency is blockchain. Blockchain now has a solo existence as earlier people recognized blockchain as a technology of only a bitcoin network. Blockchain and cryptographic technology are a purely deadly combination, and it ensures the complete security of digital currency transactions. Cryptocurrency technology itself is very secure, and no one can steal.
You might wonder what the reasons behind cryptocurrency scams and hacks are. People usually fail to store digital currencies properly, which leads to hack and scam possibilities. The simplest way to store digital currencies with security is to subscribe to a cold storage wallet. Cold storage comprises different kinds such as paper wallets, hardware wallets and good wallets.
Myth 4- Cryptocurrencies are a scam!
Cryptocurrencies are a scam; you might have heard this myth on social media, YouTube videos, and even in newspapers. But are cryptocurrencies a scam? No cryptocurrencies are scams, and people are discovering digital currencies’ use case beyond being a speculative asset and a payment method. The future of these coins seems to be very bright.
The above-listed portion describes some common cryptocurrency myths. Newbies must recognize these cryptocurrency myths.