In 2009, bitcoin, the biggest cryptocurrency in the world, was created. Since then, the cryptocurrency market has grown significantly. As with every other global trending topic, this crypto rise has not happened without controversy. Humans are always wary of new things and even though crypto has been around for a while, some of these crypto misconceptions have remained. This article reveals the facts about 3 common crypto misconceptions you may have heard about.
3 Common Crypto Misconceptions Unraveled
1. Cryptocurrency is a scam
This is perhaps the biggest crypto misconception since day one. Many people believe that crypto is only used by scammers to swindle people of their money.
Some horrible people have indeed used crypto to do this, but it is also true that people scam people with other currencies, not just crypto. The common factor here is the scammers and they do this with any kind of currency.
However, due to the growth of crypto, security measures have been put in place to eliminate these dubious activities. Crypto platforms have gotten more secure. Governments around the world have also implemented tighter measures to stop cyber attacks and cryptocurrency thefts.
2. Cryptocurrency will fade away
This is another crypto misconception that has been around for a while. In 2017, crypto became popular and entered the public consciousness, and ever since the argument has been that it will not last and will soon fade away.
A look at the history of tech shows that crypto might be here to stay. At some point in human history, the internet and every other piece of tech invented were not used by everybody. Now, every industry and even government conducts all operations using the internet. As for crypto, more and more investors are taking an interest in it.
Governments are looking for ways to implement and integrate crypto into their financial and economic agencies. Indeed, everything will eventually fade away, but the reality is that crypto for now has a very bright future.
3. Cryptocurrency has no value
The argument that cryptocurrency has no value is baseless. This is because value, much like art, is entirely subjective. What you place value on can have little value to another person. However, to the general public, crypto has a lot of value.
When bitcoin was created, it was valued at less than a cent. Today, bitcoin is valued at about 20000 USD. In 2021, bitcoin reached an all-time high of over 65000 USD. This shows how much value crypto has.
Take Ethereum for instance, it is currently valued at 1500 USD. Though not as high as bitcoin, institutions that build financial products find it to be very valuable because it is useful and has lots of potential. This is because Ethereum serves as the building block of NFTs and similar digital assets.
NFTs on their own are currently enjoying their own rise in popularity so it is easy to see why Ethereum has so much value. Add to this the fact that cryptocurrency has so many investors and users who employ it as a means of exchange and it becomes easy to see that this common crypto misconception makes no sense.
The popularity and volatility of crypto have given birth to the rise of so many common crypto misconceptions. This is to be expected as crypto remains a hot topic in today’s world. This article reveals the facts behind these 3 common crypto misconceptions and you should take this information into account as you move through the crypto world.