Sometimes it can be hard to separate fact from fiction. What’s myth and what’s truth? This is especially true in the world of cryptocurrency and blockchain. So if you’re confused about the allure and fascination of bitcoin and cryptocurrency, then we can help. Everyone has heard of bitcoin and blockchains, but what’s the truth about using and trading them? Well, below we explore ten myths you should know about cryptocurrency and blockchains to get a clear and honest picture.
1. No real monetary value
An incredibly popular myth that seems to be circulating endlessly is that of blockchain and cryptocurrency having no real monetary value in our modern world. Just one look at current cryptocurrency rates will tell you that this is not true. So when we consider the value of blockchain, there is plenty, plenty to prove that they are worth something. Blockchains have a role to play in improving the logistics of record keeping and even with the emergence of an advanced energy grid. In fact, both blockchain and cryptocurrency have real value.
2. Cryptocurrency cannot be traced
This is a myth as old as time and completely unfounded. It is also one of the most destructive myths and casts a negative light on cryptocurrency and blockchain transactions. This myth probably started and then spread when Bitcoin was first used as a currency by the criminal underworld. However, they also used traditional currency. Back then, Bitcoin was popular because it could not be monitored by the FBI. However, Bitcoin and cryptocurrency in general are traceable. Blockchains are also completely traceable.
3. Transactions will be changed forever via blockchain
This is actually a half-truth. First, let’s look at the truth. Cryptocurrency offers a safe and secure transaction process. The way we pay will also change depending on the type of cryptocurrency we use. Who knows, in the future cryptocurrency could be the main source of payment for goods and services. Only time will tell. The myth in this statement is that blockchains will change everything when it comes to financial matters. We will still pay with credit or debit cards, but cryptocurrency will (hopefully) be used alongside them.
4. Blockchain investment is only for financial institutions
This statement is very wrong on many levels. There may have been some truth to this statement in the past, but it is not true now. Many individuals now enter the world of blockchains and cryptocurrencies without a degree in mathematics or computer science. Today, anyone with a thirst for knowledge about cryptocurrency and blockchains can learn everything they need to know through specialized online courses. They will teach you the essentials and set you on the path of your chosen course.
5. Bitcoin and cryptocurrency are not safe investment choices
In the past, the world of Bitcoin and cryptocurrency was thought to be very volatile and not seen as a safe investment option. This is no longer the case. Any investment can be considered volatile, as that is the nature of investing, with the value constantly changing, so it is untrue to single out cryptocurrency. The important thing to remember is that volatile bets often come with great rewards. Just think of all those Bitcoin millionaires out there.
6. Only criminals use cryptocurrencies and blockchain
This is a myth that was once true, but now undermines the integrity and use of cryptocurrency. The Silk Road website, which was found on the Dark Web, was used by criminals to pay for bitcoin, but it was quickly shut down. The belief that bitcoin is only used by the criminal underworld is completely misleading. The average person on the street can happily and legally use bitcoin. In fact, most major banks and even Microsoft now accept cryptocurrency.
4 Best trading bots for trading Bitcoin and altcoins → Auto Trading
7. If you invest in bitcoin, you won't have to pay taxes
Wow, we really need to take a big step away from this because you need to pay your taxes. If you make a net profit from investing in bitcoin, you will need to pay taxes. Choosing not to report it to the IRS could result in a huge fine or the possibility of jail time. So don’t take that risk. Remember that cryptocurrency profits are taxable, so it’s worth researching these tax laws.
8. Cryptocurrencies are often shut down
Many people still believe that cryptocurrencies can be easily shut down by the government. But that is not true. We have no idea how this myth started, but it is hard to shake. The truth is that since there is no convergence, cryptocurrencies cannot be shut down. In fact, it is decentralized currency that is much more powerful than government-run organizations, and perhaps that scares a lot of people.
9. Cryptocurrency is completely different from 'real' money
This may have been true centuries ago, but today the value of real, fixed money is as optional as digital currency. In fact, digital currency is as real as 'real' money, as bitcoin can now be used as a real currency because it comes with a digital code. This makes it as physical as our regular currency.
10. They will never be accepted into the store.
This is a big myth and simply not true. Many stores now accept bitcoin, including Shopify, Expedia and Etsy. This list keeps growing every day. Bitcoin is a hot business right now and if you want to pay with it, chances are you can. Just watch this space.