Over the last decade and more, Bitcoin Works have grown in leaps and bounds. Despite their rapid growth they have been shrouded in mystery and thick blankets that have given rise to a number of myths that need to be debunked. Read on to know more in detail.
Some Of The Most Popular Myths Regarding Cryptocurrencies
1. Cryptocurrencies Serve The Underworld
This is the leader of all the myths regarding cryptocurrencies. It is the general notion that they serve the underworld and all illegal activities run with the profits that come out of them. It is one of the worst things to say about anything or any system without knowing properly about them.
But again, it is true that these fears have gained some ground because some shady individuals with bad intentions have used them to gain ground. There definitely are some criminal organizations that have made use of cryptocurrencies to fulfill their goals. But again, the same can be said about fiat currencies that have dominated the markets since they came into circulation.
But again, it is to be noted here that as per the findings of Chainalysis, these shady and dark activities have fallen by 0.34% as of 2020. Again, from this percentage, 54% of them were scams that were related to cryptocurrencies.
2. The Illegal Nature of Cryptocurrencies
It has been indented in most people’s minds that cryptocurrencies are illegal. It is perfectly wrong. This is because many countries and their governments have even legalized the currency. They are carrying out trade perfectly with cryptocurrencies and it is on very smoothly. Under such circumstances its legality is not an issue.
3. Some People Consider It To Be Very Complex
It is considered to be a very complex thing by many people thus leading to all the commotion regarding it. It is just like buying shares on the share market. But if you still have doubts in mind, then you can study a bit more deeply on the subject. However, if you still think it is complex, you can try trading on Bitcoin Era.
4. Bitcoin Is Believed To Be A Bubble
Bitcoin is believed to be a bubble by most people. And in economic terms, a bubble is an economic cycle that is marked by an unsustainable rise in market value. These bubbles tend to burst when investors believe that their prices are unnaturally high and they should fall. In this respect, Bitcoin is sometimes compared to the tulip bubble of 1673 where the hiked prices of tulips crashed so much that they never managed to rise again.
In this respect you must consider a fact regarding Bitcoin being a bubble. Bitcoin has definitely undergone multiple fluctuation cycles many times, but it each time it has recovered.
5. Bitcoin Has No Value In Reality
Some people often like to believe that Bitcoins have no value in reality. But again, this is another myth that needs to be busted immediately. It has been used in the past and is still used in the present moment to make payments for services or goods to anyone or company. It works without any central control hovering over it.
Today the market pricevalue of Bitcoins has increased at an unimaginable rate. The value of Bitcoins is shooting up by the day because many big corporate houses are investing heavily in Bitcoins. Considering that, this is also a myth to mention Bitcoin has no value at all.
6. Cryptocurrencies Are Not Safe
How can cryptocurrencies not be safe? When the main conceptbehind the working of the Cryptocurrency is a blockchain that is encrypted, then they are deemed to be absolutely safe. Unless you are an expert in the system it is going to be very difficult to break into the system and hack and ultimately rob the nodes of their Bitcoins or Altcoins.
So, these were some of the main myths that haunt potential Bitcoin investors and hold them back to investing in Bitcoins. So, before you make way for such unfounded theo9ries, be sure to think twice and research a bit on them to understand that these myths are not what they seem to be.