The news about coins or cryptocurrencies has been circulating lately, with bitcoin the most known as the price soared this year. It works on the concept of blockchain. Many computers verify transactions made in crypto, so when a transaction occurs, the information is saved as a block and sent to computer networks for verification. The block is confirmed and added to the chain saved on the net if the transaction is valid. Blockchain works with computer systems to distribute information and cannot be copied. It makes crypto transactions safe to perform.
Cryptocurrency or digital currency is pretty new compared to all forms of payment. With new things, they can take time to be appropriately understood, and a lot of misinformation will surface from people with minimal understanding. We’ll look at some of the myths about cryptocurrency.
The only crypto asset is bitcoin.
Bitcoin is the first cryptocurrency, and it’s the one most people own. It has the highest exchange state in the market, making it easier to sell at a reasonable price. In market capitalization, bitcoin tops the list but believing that it is the only one that matters will be wrong. Other cryptocurrencies (also referred to as altcoin) have been gaining public notice, with Ethereum gaining new value and market cap milestones.
There is just one blockchain.
All cryptocurrencies are coded differently, so they have a blockchain that records transactions. Blockchain is different, where some can be public, while other private or open or closed sources. It means you can perform a bitcoin transaction on an Ethereum blockchain because the blockchain does not interact with each other. So, there is only one blockchain for each coin.
Cryptocurrencies are a good investment.
Depending on the coin you want to invest in, it can be a good or terrible investment. There are stable coins which bitcoin is the leading coin. Although the total supply of a coin is controlled by a computer program that manages them and the scarcity makes the value go up. Some big names like Goldman Sachs, Morgan Stanley, and tesla are investing in cryptocurrency. Some coins can drop value, making them a bad investment due to wrong information. Getting a suitable investment can make crypto worth it, and with the bitcoin rush platform, you can have a suitable investment.
It is illegal and used for criminal activities.
Cryptocurrencies can be used for several purchases, as with any form of payment too. Some believe that it only has illegal use and people looking to make illicit purchases. With the anonymity behind it, it is easier to make illegal payments than other payment systems. Every form of payment can be used for unlawful purposes. Before cryptocurrency, people used the traditional payment method for illegal payments, so it is wrong to think it is mainly used for criminal purposes.
Crypto does not have any real money value.
Cryptocurrencies have no material assets backing them like gold, so they don’t any real value. Most fiats do have any backing, but they have value based on the ones people place on them and agreed upon by all parties using them. Cryptocurrency works the same way as people who trade it believe in the inherent value and understand it, and it is agreed upon to be a source of exchange for goods or services, then it has real money value the same as fiat.
Cryptocurrency has not been fully explored, and with more people learning about it, more myths will surface, and understanding will debunk the myths.
If you’re looking to get into crypto trading, you should understand the basics and the technology backing and analysis of the coin so that no myth can deface you.