Bitcoin or cryptocurrency has become increasingly popular from the time since it started in 2009. The growth, demand, and popularity of digital money are quite revolutionary. Cryptocurrency does not follow traditional banking or other money transfer systems that require cross-check verification. Apart from that, for doing trading you need to know a lot of things like blockchain, block, bear trap pattern in trading, etc.
The technology used for this virtual money transfer system is highly capable, secure, and sustainable if done correctly. That is why crypto trading is perfectly desired by people from the digital world.
But, still, the concept of crypto is complex and hard to understand sometimes. The Bitcoin price range has immensely increased since it began. For these reasons, confusion about cryptocurrency leads us to various rumours and misconceptions. So, it is essential for traders to differentiate the certainty and myths before starting funding.
Let’s focus on some of the 5 most common misconceptions about cryptocurrency.
Popular Misconceptions About Cryptocurrency
1. Crypto Is For Illegal Users And Activities
Bitcoin is for criminals and used for illegal activities, this myth regarding virtual currency is widely believed. However, it is not false that, during crypto's rising period, this digital money was mostly operated for various wicked purposes by illegal professionals.
But different research is indicating, that digital currency transactions for illegal use have fallen down recently. Different individuals from various sectors are extensively using crypto in legalized platforms. Although it is a decentralized transaction system, lately several countries and their governments permitted the flow of digital currency for licit use.
2. Bitcoin Could Be Used As Real Money
Many of us still wonder about Bitcoin or digital money. Is it paper money, metal coins, or any expensive stuff of value storage? The answer is no, this currency isn't something physical we know.
Money is considered as a reserve of value or payment transaction system converted into a price that is acceptable publicly. For cryptocurrency, it can be defined as a digital or virtual reserve of value that can be converted into cost via a cryptosystem.
A lot of third-party traders receive various forms of cryptos like Bitcoin, Ethereum, Tether, Binance, etc in returns for any products, assets, stocks, or dollars. You can use this digital money in exchange for any necessary deal when you enter the cryptocurrency world.
3. Crypto Is Unsecured To Use
One of the most prevalent ideas about Bitcoin is unsafe, and uncertain for users. But if you are confused about the technology that is used to operate digital money, we are ensuring you that till now it is the utmost secure technology for money transfer. There is no record of this network having been hacked until today.
Blockchain is the technology used for Bitcoin transfer. This open-source code has been developed, observed, and implemented by many experts from time to time. So, you can be relaxed about the system regardless of the fact of the trading platform.
4. Cryptocurrencies Are Valueless
As digital currencies are not a physical form of money or a valuable product, those who don't know about the concept might think virtual money doesn't have actual value. In general, money or any other expense can not be handed over by Bitcoin.
Any product can be valuable for one, while it can be valueless to another. When bitcoin started in the market a cent for one thousand was the primary price range, but in 2022 the price of one bitcoin rose to around $24,000 as of this publication (although that can change daily). So, the value of bitcoin increased over time and users.
Even if the physical placement of money is not happening instead of Bitcoin, you can be certain about the value of digital money, because with cryptocurrency transactions you can exchange valuable assets in a different form.
5. Bitcoin And Blockchain Are Identical
Most of us have an obscure idea that Bitcoin and Blockchain are the same things. While Bitcoin is the money or digital currency and Blockchain is the technology or system to transfer that virtual money or Bitcoin. So, you should be clear about the concept of digital money and the used system.
Crypto Conclusion
Many misconceptions are there in the list of cryptocurrencies. Only five of them are followed up here, but there are certainly more myths and misconceptions out there about crypto.
We hope some of your uncertain ideas about crypto are cleared. Let us know if this article was helpful for your myths or not. Light us up with your opinion regarding cryptocurrencies on social media, so remember to share this link along with your thoughts!
