Ever since their launch in 2009, cryptocurrencies have seen humongous highs and lows. They have been a part of breaking news, social media discussions, and even in offices and colleges.
All this hype has been due to several factors. Be it the path-breaking blockchain technology, their exciting real-world uses, or just the independence that they enjoy, cryptocurrencies have caught the fancy of people the world over.
Despite all this, not many people understand crypto in their real sense. All this popularity and the ensuing confusion have given rise to many myths.
This guide will help bust these very myths and help you steer clear of all the misconceptions.
Let’s do a fact-check about everything important about cryptocurrency:
Myth 1: Cryptocurrencies are mostly used for illicit purposes
Due to its decentralised nature and ease of transactions, people think that crypto is mostly used for criminal activities. That’s not true.
Cryptocurrencies such as Bitcoin and Ether are being used by leading businesses, investors, and hedge fund owners. That’s not all, celebrities and influencers such as Elon Musk, Selena Williams, Bill Gates, Mike Tyson and the likes are connected with supporting cryptocurrencies.
Myth 2: Digital currencies are not secure
A very common myth is that cryptocurrencies are not secure and a risky proposition. The main technology behind crypto is blockchain, one of the most secure technologies on the planet. It is secured with encryption techniques that are impossible to break into. As transactions are entered into these blocks, previous information is recorded and encrypted in new blocks.
This transaction information is nearly impossible to steal or change.
Myth 3: Cryptocurrencies are not environment friendly
Being concerned about environmental pollution and wasteful energy is a legitimate concern when it comes to cryptocurrencies. For instance, crypto miners harness humongous amounts of computing power while securing their networks.
But all this is changing. More and more cryptocurrencies are now transitioning to newer versions and Proof-of-Storage or Proof-of-Stake mechanisms that use far less energy and computational power. Some of the ‘greenest’ currencies include Nano, EOSIO, TRON, and Dogecoin. If you wish to buy or trade-in this currency, know the Dogecoin to INR rates.
Myth 4: Cryptocurrency has no real-world value
One of the biggest myths is that cryptocurrencies have no real value. Some people also think of them as a scam. This is especially thought of meme coins such as Dogecoin. Know the Dogecoin to INR conversion rates before investing.
With every passing day, more and more people are using them as a means of transaction. The most credible Fortune 500 companies like Microsoft, Mastercard, PayPal Holdings, CME Group, etc, have adopted crypto as a transactional currency.
Myth 5: The cryptocurrency bubble will burst
At one point in time, even the Internet and computers were considered to be a fad. These have all become staples of everyone’s lives. And the same is true for cryptocurrencies. Though it’s difficult to know what the future has in store, they seem to be a very promising proposition for their solid use cases.
Even though cryptocurrencies are extremely volatile and don’t suit everyone’s risk appetite, they are still helping make transformations around the world. Be it allowing you to transact without the usual bureaucratic hurdles or helping the unbanked get finances, crypto is improving lives around the world. For instance, strong currencies like Tron and Ripple are helping change the way the Internet works and how content is consumed. Know the XRP to INR rates before investing.
To sum up, since cryptocurrencies are still a new phenomenon, people will take more time to understand their use cases and get used to adopting them in their daily lives. Busting myths like this can go a long way in helping clear doubts and misconceptions and allowing people to make informed decisions. To keep yourself updated on the new terms, trends, and news about cryptocurrencies, you can depend on platforms like Coinswitch.