10 Myths about Cryptocurrency and Blockchain

Last Updated July 23rd 2021
7 Min Read

Sometimes it can be difficult to separate fact from fiction. What is a myth and what is the truth? This very much applies to the world of cryptocurrency and blockchain. So, if you are confused as to the attraction and allure of the bitcoin and cryptocurrency then we can help. Everyone has heard of bitcoin and blockchains, but what is the reality of using and trading with them? Well, below we explore ten myths you should know about cryptocurrency and blockchains so that you gain a clear and honest picture.

1. No real monetary value

monetary value, cryptocurrency myths

One incredibly popular myth that constantly seems to circulate is that of the blockchain and cryptocurrency having no real monetary value within our modern world. Just one glance at the current cryptocurrency rates will tell you that this is not true at all. Then, when we consider the value of the blockchain, well, there is so much that proves 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. Indeed, both the blockchain and cryptocurrency have real worth.

See also: Everything You Should Know Before Investing in Cryptocurrency

2. Cryptocurrency is untraceable

This is a myth as old as time and one that is completely unfounded. It's also one of the most destructive myths and sheds a negative light on cryptocurrency and blockchain transactions. This myth probably started and then spread when the bitcoin was first used as a currency that was used by the criminal underworld. But, they also used traditional currency. At the time, the bitcoin was in favour because it couldn't be monitored by the FBI. However, the bitcoin and cryptocurrency, in general, are traceable. Blockchains are also fully traceable.


3. Transactions will be changed forever via blockchain

This is really a half-truth. Firstly, let's look at the truth. Cryptocurrency offers a secure and safe transaction process. The way in which we pay will also change, depending upon the type of cryptocurrency that we use. Who knows, in the future cryptocurrency may be the main source of payment for goods and services. Only time will tell. The myth within this statement is that blockchains will change everything when it comes to financial matters. Well, we will still pay via credit or debit card, but cryptocurrency will be used (hopefully) alongside them.

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4. Blockchain investment is only for financial wizards

This statement is so wrong on so many levels. There may have been some truth in this statement in the past, but it's not true now. Many individuals now enter the world of blockchains and cryptocurrency without a degree in mathematics or computer science. Today, anyone with a thirst for knowledge for cryptocurrency and blockchains can learn everything they need to know via specialist online courses and e-learning, such as those offered by Trading Education. They will teach you the basics and set you on your chosen career path.

5. Bitcoin and cryptocurrency are not safe investment choices

bitcoin and cryptocurrency are not a safe investment, cryptocurrency myths

It was once thought that the world of the bitcoin and cryptocurrency were too volatile and not seen as safe investment choices. This is no longer the case. Any investment can be deemed as volatile, as that's the nature of investing, with the value constantly changing, so it is wrong to single out cryptocurrency. What's important to remember is that volatile stakes often come with huge rewards. Just think about all of those bitcoin millionaires out there.

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6. Only criminals use cryptocurrencies and blockchains

This is a myth that was once true, but it's one that today undermines the integrity and usage of cryptocurrency. The Silk Road website that could be found on the Dark Web, was paid for via criminals using the bitcoin, but it was swiftly shut down. To believe that the bitcoin is only used by the criminal underworld is completely damaging. The everyday person on the street can happily, and legally, use the bitcoin. In fact, most major banks and even Microsoft, now accept cryptocurrency.

7. If you invest in bitcoin then you don't need to pay taxes

Woah, we really need to take a big step away from this one, as you do need to pay your taxes. If you make a net gain while investing in the bitcoin, then you do need to pay tax. Choosing not to inform the IRS could mean a huge fine or the possibility of a jail sentence. So, don't take that risk. Just remember that cryptocurrency profits are taxable. So, it is worth the while researching those tax laws.

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8. Cryptocurrencies are often shut down

Many individuals still believe that cryptocurrencies can be easily shut down by the government. But, this is not true. We have no idea how this myth began, but it's one that is hard to shake off. The truth is, that as there is no centralization, cryptocurrencies cannot be shut down. In actual fact, it is the decentralized currency that is much stronger than those organizations run by the government, and perhaps this scares many people.

9. Cryptocurrency is completely different to 'real' money

cryptocurrency is completely different to real money

Perhaps this was true a hundred years ago, but today, the value of real and flat money is pretty much as arbitrary as digital currency. In fact, digital currency is just as real as 'real' money, as the bitcoin can now be used as an actual coin as it comes with a digital code. This makes it just as physical as our normal currency.

10. They will never be accepted in store

This is a huge myth and one that is simply not true. Many stores now accept the bitcoin, including Shopify, Expedia and Etsy. This list continues to grow on a daily basis. Bitcoin is now hot business and if you want to pay with it, the odds are that you can. Just watch this space.

Here at Trading Education, we help individuals from all walks of life to navigate their way through the world of cryptocurrency. We provide all of our clients with online education tools and advice on trading in the cryptocurrency financial markets. To learn more about our services then please do get in touch with us today.

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Source: https://thechain.media