The establishment of Bitcoin created a revolution in financial systems. No doubt that Cryptocurrencies have created a massive fortune in the digital finance era. As all the innovations face a certain resistance by myths, cryptocurrencies including bitcoin had to answer those. These myths have entered into the discussions due to price fluctuations and risks that occurred within the top cryptocurrencies. The rumors, myths, and untruths were able to create a bit of uncertainty among the external community. What are the common myths behind cryptocurrency? Do the participants really suffer from the facts that have emphasized by such myths? Did these myths debunk in the past decade? Let’s discuss this within this context!
Cryptocurrency is mostly used in BlackMarket.
This is one of the oldest and frequently heard myths about cryptocurrencies. The main reason behind this myth is the anonymous environment of cryptocurrencies. Most of the rumors stated that cryptocurrency is used for illegal activities. While considering the statistics of cryptocurrency this state becomes true up to a certain degree. But these activities are also performed by fiat currency. However, it is no secret that illegal activities took place before the introduction of the first cryptocurrency, Bitcoin. Therefore, the actual reason behind this issue is not about cryptocurrency. It is a matter of the criminals who are involved in illegal activities.
Cryptocurrencies are Worthless.
Still, some of the investors are arising their voices questioning the stability of Cryptocurrency. Many say that it is questionable how cryptocurrencies are treated in tax returns and activities. Most of this kind of myths states that cryptocurrency is a fad or a quick disappearing asset. But in the real scenario cryptocurrencies are considered as a legal currency. Therefore, some states have introduced specific regulations and rules to govern cryptocurrency as a legal currency. More specifically, there are the world’s richest people who have stated a huge portion of their assets by cryptocurrencies.
Cryptocurrencies are less Secured.
Since the crypto networks are built on a virtual platform, these rumors arise. There were some recorded cases of scams, thefts, and hacks of digital currencies. But this issue does not impact only cryptocurrencies; even in fiat currencies, this kind of security threat arises. On the other hand, crypto networks have introduced many protection methods. However, the protection of your assets lays in your hands; not on currency type.
Cryptocurrencies badly impact on the Environment.
Digital currencies are purchased differently from fiat currency. They should be mined from the mining pool. This process requires a massive amount of electricity. This is the primary reason behind the myth. But even in the modern banking systems, there is huge electricity consumption. Therefore, providing resistance to digital currency is not the most appropriate solution. Finding sustainable energy would be better for all the above cases. Not only to save electricity! But to save the planet!