Over 300 million people already use cryptocurrency worldwide. Today, over 18,000 companies even allow cryptocurrency as a form of payment. Stored and tracked through blockchain, this digital currency is currently taking the world by storm.
Along with its growing popularity come a number of cryptocurrency myths, though. Here are five myths you’ll want to ignore while exploring the cryptocurrency market. Ignoring these myths will help you make more accurate decisions regarding your investments.
Read on to discover the top myths associated with cryptocurrency and blockchain technology today.
1. It’s Real Money
Cryptocurrencies allow us to make payments without credit cards, checks, or currency notes. Any two parties can transact directly without a trusted third party. We’re no longer reliant on banks or governments when making financial transactions.
However, it’s both expensive and slow to conduct transactions using cryptocurrencies. It can take time for a bitcoin transaction to get validated. You’ll have to consider the fee for each transaction, too.
Wild swings in the value of cryptocurrencies can make them unreliable as a form of payment as a result. Fluctuations make cryptocurrency too unstable to become practical.
2. It’s Completely Secure
The user index for 2021 shows a 97% confidence in cryptocurrencies. Don’t get too confident, though.
Blockchain technology is meant to provide security through encryption. Unfortunately, the cryptocurrency market is still vulnerable to hackers. Cryptocurrencies are stolen every single day.
Maximize your personal security by keeping track of your personal keys and codes. Don’t give access to anyone.
Avoid leaving your crypto coins in an exchange for an extended period of time as well. Otherwise, you’ll leave yourself more vulnerable to a cyberattack.
3. It’s a Good Investment
You could make a great return if you choose the best cryptocurrency investments. However, you’ll need to remember that instability is an issue.
However, demand is necessary for value to increase.
The value could drop to nothing if few people recognized cryptocurrencies as worthwhile investments.
4. Crypto Will Replace the Dollar
Some blockchain technology experts believe Bitcoin can displace the dollar. However, cryptocurrencies aren’t backed by anything but by faith in those who own them.
The dollar, however, is backed by the US government. Investors trust the dollar, too.
Consider trying it for yourself. For example, you can learn about turning ltc to cad here.
5. It’s Just a Fad
Some economists believe Bitcoin is a scam. Critics have also questioned blockchain technology. However, the increase in digital payments could lead to less reliance on paper currency.
It’s possible transactions for purchasing cars and homes will become managed through computer programs. These programs would run on cryptocurrency and blockchain networks.
However, governments still need to maintain the ability to enforce contractual obligations and property rights.
It’s still possible that software will take the place of accountants, bankers, and other intermediaries, though.
Crypto Cha-Ching: 5 Cryptocurrency Myths to Dodge for Success
There are a lot of cryptocurrency myths floating around. Take the time to keep track of blockchain news and updates. Remaining educated will help you avoid other crypto myths.
Instead, you can make an investment!
Searching for more tips? Check out our guides.