After introducing the foremost cryptocurrency in 2009, the market has surged dramatically.
However, the anonymous attribute makes cryptocurrencies challenging to understand, and a misleading interpretation of digital coins has led to enormous rumours and myths subjected to such virtual coins.
The utmost famous myth related to cryptocurrencies is that virtual coins are nothing but a fraud, and they will scam people in future. Visit websites like https://immediatebitcoin.org/ to get a detailed guide to cryptocurrency trading.Here are some popular myths related to cryptocurrencies; let’s glance.
Cryptocurrencies are merely for funding illegal activities!
A traditional and controversial myth related to cryptocurrencies is that people only use this monetary system to fund illicit activities. Undeniably, there were incidents where criminals demanded payments in cryptocurrencies as extortion but do it justify using digital currencies for illegal activities? As per reports, only 0.50% of cryptocurrency transactions are used to fund illegal activities, and the majority of these activities are scams or decentralized rug pull.
Before accusing cryptocurrencies of their use case in illicit activities, it is mandatory to acknowledge that higher authorities and other international parties regulate this monetary system to mitigate their use in criminalized activities.
The frequent criminalized cryptocurrency transactions include privacy-focused currencies. After acknowledging this, government authorities have wholly restricted the use of privacy-focused cryptocurrencies.
The cryptocurrency bill of India is not definite yet, but it depicts a sweeping crackdown on privacy-focused digital coins like Monero and Dash. In addition, developed countries like the United States and Canada have implicated anti-money laundering regulations regarding the use of digital currencies.
Cryptocurrencies don’t have any Market Value!
The myth of cryptocurrencies not having any market value is completely obscured. The spot price of a legendary cryptocurrency, BTC, is much more than the majority of the digital assets. The myth arose when bitcoin was having storming fluctuations in its market value.
Ethereum, a typical electronic ledger system that contemplates a native coin ether, is the fundamental and base for numerous NFTs and DOA. Undeniably, Ether doesn’t comprise a dollar value as BTC, but this coin’s use case and implication provide a significant market value to the developing team. Many multinational companies have proved this rumour wrong by going all in and magnificently investing in this token. Some significant holders of bitcoin are Micro Strategy and Tesla motors.
Cryptocurrencies Lack Security!
The fundamental technical aspect on which cryptocurrency relies is blockchain. Blockchain comprises a similar notion as an electronic ledger, and usually, blockchain comprises a public source code. In short, you can also view and save the source code of a public blockchain on your computer. To form a cryptocurrency, one can save the source code and easily add desired details. Furthermore, blockchain comprises encrypted attributes, and it is utterly challenging to halt this encryption technology. Therefore, cryptocurrency offers unforgettable security. Most cryptocurrency scams, theft attacks, and hacks occur due to a lack of security in exchange and wallets offering services regarding these coins.
Digital Currencies Harm The Environment!
Undeniably cryptocurrencies have given some valid reasons to be concerned about the environment. For example, regularly traded cryptocurrencies like bitcoin have employed proof of work, the reason behind significant environmental impacts.
Consensus mechanisms like proof of work are very energy-intensive. Bitcoin mining has lured significant companies to start the mining business. Mining farms set up by these companies necessitates a magnificent extent of electricity or an energy source to run the dedicated mining machines. But cryptocurrencies are not completely bad for the environment, as the mining council led by different parties have addressed the use of sustainable energy source for this process.
Half of the large mining plants have installed hydropower plants, solar energy plants and other sustainable energy plants for mining. Using such a power source is not merely good for the environment but also profitable.
Cryptocurrencies Are Scam!
Digital coins like BTC have undergone mass adoption by retailers and merchants in the last few years. Crypto enthusiasts are accepting BTC for their personal use; all the more, higher authorities are operating to acknowledge authentic ways to implicate strict regulations. The majority of cryptocurrencies are devoid of programming and source code intended to fraud money from the public.
The portions mentioned above describe some of the popular myths associated with cryptocurrencies.