Given the rapidly growing popularity of cryptocurrencies, many novice investors have become interested in this market. While some of them have at least the slightest idea about digital currencies, many people come into this field with various misconceptions that have nothing to do with reality. Most often than not, they believe in myths about cryptocurrencies that have no basis. So, in today’s article, we will debunk some of these erroneous beliefs.
Myth #1. Crypto payments are completely anonymous
Inexperienced users often mention the anonymity of crypto transactions as one of the main benefits of digital currencies. And while this decentralized payment method really does not reveal your personal information like name or contact details, it cannot provide you with complete anonymity. Since the blockchain contains data on all transactions, anyone can find out which crypto wallets were involved in these operations and find their owners eventually.
Myth #2. Cryptocurrencies are used for criminal activities only
Many crypto skeptics believe that cryptocurrencies are a perfect tool for criminal activity that is not used in any other way. Even though the nature of this payment method does allow some criminals to commit criminal acts, digital currencies are predominantly used for common transactions. For example, betting companies and online casinos have begun to implement this payment method actively in recent years.
Myth #3. Cryptocurrencies will disappear sooner or later
The collapse of the cryptocurrency market in the second quarter of 2022 convinced many people that digital currencies would completely disappear in the foreseeable future. However, financial experts argue that this investment niche simply experiences cyclical fluctuations that are common to any other market. They believe that some crypto coins may not survive periods of crisis. But eventually, this market will stabilize.
Watch this video to know how digital currencies actually work.
Myth #4. Bitcoin and blockchain are synonymous concepts
Those unfamiliar with cryptocurrencies often perceive Bitcoin and blockchain as the same thing. But in reality, the blockchain is a technology for building a database that does not allow you to delete or change the information contained in each block. This technology can be applied in many different ways, and digital currencies like Bitcoin are just one of the use cases.
Myth #5. Many countries will approve cryptocurrencies officially
Although crypto coins are a fairly convenient payment method, most civilized countries are unlikely to equate them to their state fiat currencies. Since cryptocurrencies are highly volatile assets, it would be too risky to allow people to keep their savings in Bitcoin, Ethereum, or other digital coins.
Read more: Best Gambling Payment Providers
