I know you have read a lot of information about cryptocurrencies here on Read.Cash, from persons with right knowledge about it and some other crypto enthusiasts.
My level of knowledge about cryptocurrencies is average, but to promote cryptocurrency in my little way, let me share with you this article today.
Before anything else, let's get started with a little bit of introduction.
What is Cryptocurrency?
Cryptocurrencies are digital or virtual currency and used cryptography to provide secure online transactions. This decentralized structure allows them to exist outside the control of governments and central authorities.
Here are the recent the top 10 cryptocurrencies:
Bitcoin ($BTC)
Ethereum ($ETH)
XRP ($XRP)
Tether ($USDT)
Bitcoin Cash ($BCH)
Litecoin ($LTC)
EOS ($EOS)
Binance Coin ($BNB)
Bitcoin SV ($BSV)
and Tezos ($XTZ)
And of course, cryptocurrency can't avoid the bashful society. It faces criticisms too and a number of myths, showing falseness or hollowness against it.
To be real, people easily judge something that is supposed to be 'new' to them, just like cryptocurrencies. Although it was first released last 2009, many people don't know and understand better about it.
Cryptocurrency: Myths and Facts
Cryptocurrencies are Unregulated
In its early years, it is true that there were no regulations governing cryptocurrencies. But changes have been done, nowadays, many countries have taken assertive steps to regulate cryptocurrency transactions and trading.
Cryptocurrencies are Used for Illegal Activities
Even I before used to believed that cryptocurrencies are used illegally. I've read lots of file archives from private Facebook groups, stating that cryptocurrencies have been linked to illegal activities on the dark web. Although it is easier to buy illegal items with cryptocurrency than other payment methods, most people just use crypto to purchase food and clothing. In truth, Bitcoin is overseen by legitimate use. It is held as a pure investment, and as a safe store of money.
Now, after being here on this platform, I understand better that it was actually not true.
Digital Currencies Don't Have Real Value
One of the most common myths about cryptocurrencies is that their value isn’t ‘real.’ Material assets do not back some cryptocurrencies, but it does not mean that their value isn’t ‘real,’. Most fiat currencies are not supported by material assets either. In addition, nowadays, some cryptocurrencies are backed by material assets, or tied to fiat currencies.
The Use of Crypto is Anonymous
Technically it is true that cryptocurrencies do provide anonymity or namelessness and the identity behind each transaction is encrypted. But all cryptocurrency transactions are public and transparent, which means that they can be traced to some point and extent.
Cryptocurrency is Not Safe or Secure
The fact that scams and thefts exist is undeniable, but that has nothing to do with the safety of cryptocurrencies.
Cryptocurrencies are safe, as long as cybersecurity is taken seriously. Most of the scams and thefts that have taken place have been due to cybersecurity openness or vulnerabilities in cryptocurrency exchanges, or user error and negligence.
Cryptocurrencies will be Ban and Shut down
Some countries have banned cryptocurrency in many ways by banning exchanges, restricting usage, or outlawing mining. But no government has the power to shut down a cryptocurrency; blockchains are international and decentralized. In fact, many states have taken a positive stance towards cryptocurrencies – including the United States, Canada, the European Union, Australia, and Finland.
Conclusion
There a number of common myths about cryptocurrencies and it is important for you to know and understand why they aren't real.
There are a lot of myths that exist, not only about cryptocurrencies, unfortunately, a lot of the information out there is not true, that's why you should always check the source of any information before you start believing with it.
Reliable Sources:
https://blockchain.news/news/debunked:-the-7-most-common-myths-about-cryptocurrencies
https://permission.io/blog/cryptocurrency-myths-and-facts/
https://www.nerdwallet.com/blog/investing/cryptocurrency-7-things-to-know/
@eommaZel ✍🏻
Thank you for sharing. I'm new to the cryptocurrency world so I still have a lot to learn.