Cryptocurrencies have increased in popularity in recent years. The crypto market is thought to be profitable, yet it is nothing short of a roller-coaster trip. With the current price drop, many coins have already vanished.
Cryptocurrencies are filled with myths these days. We will look at the 4 Biggest Cryptocurrency Myths.
1. Crypto transactions are hidden
When a new user hears the phrase crypto, the first thing that springs to mind is anonymity. While crypto provides privacy, your personal information, such as your name, address, and contact information, may still be traced.
Each Blockchain transaction is documented with the sender’s and receiver’s crypto-wallet addresses. All transactions entering and going via this wallet are recorded on the blockchain, which is open to the public. However, central authorities have made KYC necessary for exchanges, so your wallet address will ultimately be tracked down. As a result, crypto transactions are often known as pseudo-anonymous transactions.
Also Read: How to identify fake crypto
2. Investing in Bitcoin is a form of gambling
Although Bitcoin’s price has changed significantly over the previous decade, this is to be expected in a young and expanding industry. Bitcoin’s long-term worth has consistently increased since its genesis block in 2010, with a market valuation nearing $1 trillion (as of February 2021; see the current market cap). As Bitcoin has matured, a strong regulatory framework in nations throughout the world has helped to attract a wave of institutional investment.
3. Cryptocurrencies Are a Ponzi Scheme
Many businesses and merchants already accept cryptocurrency as a form of payment. People are using them in personal transactions, and governments are attempting to regulate them. Most cryptocurrencies do not contain any programming, coding, or evil artificial purpose to steal your money.
Unfortunately, others have devised schemes to defraud you of your bitcoin or money. For example, many initial coin offers (ICOs)—unregulated funding for new cryptocurrency ventures—have proven to be hoaxes. In other cryptocurrency scams, someone may phone you pretending to be a government official and urge you to settle your bills in bitcoin.
Also Read: Earn money from crypto
4. Bitcoin is illegal since it is not an official currency
Some other huge discussion about Bitcoin is whether it is a legal currency. Legal currency in the United States consists of coins and banknotes manufactured and issued by the US government. But it doesn’t mean bitcoins are unlawful, because the US government considers their virtual money, which the US Financial Crimes Enforcement Network (FinCEN) acknowledges. For the time being, Bitcoin may fall into certain questionable areas, but it is not illegal.