With anything new, there are always common misconceptions. Cryptocurrency is no exception to that.
In fact, here are some of the top misconceptions that you might want to pay attention to.
Cryptocurrency is a replacement of fiat money
Among these misconceptions, this one is a bit ridiculous. Cryptocurrency replacing fiat money is not realistic and makes little sense. While a large percentage of the world population is online, there are still thousands of people that do not have Internet access whatsoever. Fiat money and cryptocurrency can coexist. That will not change, at least not any time soon.
Cryptocurrency does not have intrinsic value
One of the most common misconceptions is that crytptocurrencies do not have any value. However, this is not true because, just like any other currency, it has a set value. It is imperative to note that cryptocurrency meets all the criteria of a currency. These features include fungibility, scarcity, durability, transferability, and divisibility.
You can only buy cryptocurrency by the Coin
This couldn’t be further from the truth. You do not have to buy a “full” coin. You can actually buy a “fraction” of a coin. For example, you can buy 0.001 Bitcoin, if you so choose.
Cryptocurrency is completely anonymous
Different crytptocurrencies have different levels of privacy and there are also ways of tracking identity of the blockchain. Among others, one of the major misconceptions present cryptos as anonymous entities originating from Bitcoin. However this is not true. With Bitcoin, there is no disclosure of the user’s personal data. However, all transactions are recorded on the public blockchain. All we have to do is figure out who owns a particular wallet to look into an investor’s transaction.
People mainly use Cryptocurrency for illegal transactions
With the crime and scams we hear about, you’d think this was true. It’s not, though. That’s like saying the U.S. dollar is, too. Cryptocurrency can be used to pay well-known establishments, like Microsoft, Subway, and even Expedia.
With anything new that appears “scary,” you’ll come across misconceptions. Don’t let them — especially those that carry no weight — scare you away.
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