It is a fact that digital currencies have experienced significant boosts in popularity globally. However, there are persistent untruths, myths and rumors about the crypto space in general. Cryptocurrency was launched in 2009, today, there are thousands of cryptocurrencies in the world with a total value of about $2 trillion.
Earlier than cryptocurrencies, gold and company shares were the most preferred investments among people in business. But with the introduction of cryptocurrency and easy ways to buy and sell these digital currencies online, general public interest in them also increased.
In early 2021 cryptocurrencies crossed the $1.3 trillion mark, making them the top-performing asset and the world’s fifth most circulated currency by value over the last decade. Digital currencies have become one of the most expensive yet highly profitable investments ever since, Bitcoin especially, It is now equivalent to 52,981 USD.
- CRYPTOCURRENCY IS A PONZI SCHEME.
People who use digital currencies are always advised to be alert and make their own research about choice of investments. The authenticity of a cryptocurrency is made clear if the company is transparent enough to let you find virtually everything about the said cryptocurrency. If the crypto project does not meet certain measures of credibility then something is wrong from the outset.
- CRYPTOCURRENCY DON’T HAVE VALUE .
Cryptocurrencies do not need a commodity to give it value. Many cynics claim that cryptocurrencies have no inherent value because they lack the backing of commodities such as gold or silver. But most fiat currencies are not backed by commodities either.
Their value instead allows consumers to exchange it for goods/services of a similar value. Therefore, the value of crypto is determined by all parties involved in the transaction.
CRYPTOCURRENCY IS ILLEGITIMATE
Another misconception many people have is that cryptocurrency is illegitimate. But the fact is, it is not; cryptocurrency falls on the borderline as one of its primary successes is global acceptance and it cannot be regulated.
- BLOCKCHAIN AND BITCOIN ARE THE SAME.
Bitcoin is one of more than 4000 cryptocurrencies in the world. The blockchain is a circulated, shared, decentralized, fixed ledger;sometimes referred to as distributed ledger technology (DLT) that allows for transparency in documenting contracts, and trace of properties or assets.
Bitcoin as a cryptocurrency is a digital asset or currency that can be transacted through the blockchain between two or more entities to buy physical or digital goods/services.
- CRYPTOCURRENCIES ARE NOT SECURE.
The regulation of cryptocurrency is on the increase. In the early stages of cryptocurrency, the fear of it being banned was all over. However, many governments are willing to adopt its use, and this supports the business space within their jurisdiction. Once it is regulated it becomes taxable.