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Over the past couple of years, it has become almost impossible to ignore the rise of digital money, otherwise known as ‘cryptocurrencies.’ With lots of speculation surrounding them, cryptocurrencies have become the center of widespread debates and discussion, with many false claims circulating, and simply, misconceptions arising. So, what is really going on when we talk about cryptocurrencies? And how do we know what to believe? Here are the top four most common misconceptions surrounding cryptocurrencies debunked.
“Bitcoin is the Only Cryptocurrency”
A large majority of people have heard of ‘Bitcoin’, with 5% of Americans using it. But many people believe that this is the only cryptocurrency available. In fact, right now there are over 1600 Cryptocurrencies available. However, out of these, ‘Bitcoin’ is the largest network, with the highest market capitalization of all others. This was the original cryptocurrency, with others now including ‘Ethereum’, ‘Litecoin’ and ‘EOS’. These are all high in value and should not be disregarded. Although Bitcoin is the most popular form of cryptocurrency, be aware that it is extremely volatile, as with all Cryptocurrencies.
“It is Illegal”
This claim stands to show a widespread lack of knowledge and understanding about cryptocurrencies, as a huge percentage of people believe that they are illegal in the US. This is not the case; cryptocurrencies including Bitcoin are a ‘money services business’ rather than a legal currency, as they are not controlled by banks or through the government. This can be seen throughout countries such as Canada and Japan, as well as countries in the EU. However, this does not mean that they are legal in every country. In fact, Cryptocurrencies are illegal in a number of countries including Saudi Arabia, Colombia, Egypt and Morocco. For a full list of places where you can and can’t legally use Cryptocurrencies, check out this page.
“They Aren’t Worth Anything”
Since it started out, cryptocurrencies such as Bitcoin have risen in value, but just why is Bitcoin so valuable? Well, it all comes down to how willing people are to accept it as a form of payment, and with over 7 million people using Bitcoin, it is clearly a reliable form of payment that can be used instead of money for payments of goods and services, or for trading. One of the things that makes it so appealing is the fact that it is not controlled by the government or banks, leading many people to using it and therefore increasing its value. Essentially, the more people that use it, the more valuable it will become. Although it is high in value, as stated previously, it is extremely volatile, so if you’re thinking of investing in cryptocurrencies, check the prices on a live crypto tracker.
“It’s Not Safe”
Contrary to popular belief, cryptocurrency is low risk due to the fact the transactions never contain personal information of customers, ultimately making the transactions anonymous. This helps protect against fraud and identity theft. Users are fully in control of their currency and do not get charged to send it or accept it.
So, there we have the truth surrounding the most common cryptocurrency misconceptions. If you’re wondering if it is worth using or investing in these currencies, make sure you do plenty of research and keep an eye on the value by using a live crypto tracker. There are many advantages to using something like Bitcoin or Ethereum, but like anything, take precautions and be aware where you can and can’t use bitcoin. Overall, it is a fresh and modern form of currency, and no one truly knows what the future holds for cryptocurrency.