Debunking the Latest Cryptocurrency Ownership Myths That Exist Today
More than 100 million people around the world have invested in cryptocurrency. Looking at crypto from the outside in can be confusing, especially with so many untrue rumors about it out there.
There’s a lot to know about cryptocurrency ownership—but there are a lot of myths about it, too. Let’s debunk some of those myths now.
1. Cryptocurrency Can Be Used for Online Payments
Some people might think that cryptocurrency is interchangeable with a credit card. But you can’t use cryptocurrency for online transactions — the foundations aren’t in place for this to happen just yet.
It can take up to 10 minutes for a cryptocurrency transaction to go through, and most will come with high fees: think $20 or more. Plus, because the value of bitcoin and the wider cryptocurrency market changes so much, it’s hard to use it for payments. The value of crypto can rise and fall as the payment goes through.
2. Cryptocurrency Ownership Is Illegal or Criminal
On that note, you might have heard that you’re not allowed to get into the cryptocurrency business because it’s illegal or used by criminals. This couldn’t be farther from the truth.
Cryptocurrency is a completely legal investment, and every how to buy graph will further corroborate that statement. It’s not regulated like normal currency, but that doesn’t mean it’s illegal or linked to criminal activity.
3. Cryptocurrency Is an Automatically Sound Investment
There’s certainly a lot of buzz around cryptocurrency and the high value it has. But you can’t assume that bitcoin will always be worth what it is right now. It’s not a promised profit if you invest in crypto.
More and more investors are getting into the cryptocurrency market, but there will be a finite supply of bitcoin. Whether or not that bitcoin increases in value will ultimately rely on demand. If no one wants to use crypto for, say, financial transactions, it very well could lose its value.
4. Cryptocurrency Will Replace Money as We Know It
The US dollar is backed by the US government. So, the traditional money in your account has a promised value, and that will never change.
Some have argued that cryptocurrency will replace the cash we carry around and the credit cards we swipe and tap. But this digital currency doesn’t have any sort of financial backing. It derives its value from demand and the confidence of investors.
That doesn’t make cryptocurrency as trustworthy as a government-backed currency. However, in the future, there might be versions of it thats’ backed by real dollars, which will make that version of crypto a bit more trustworthy.
Know the Truth about Cryptocurrency Ownership
Debunking myths about cryptocurrency ownership is one way of learning more about this new form of payment and investment. But you can inform yourself even further by studying more about bitcoin and other blockchain networks. Asking experts can enlighten you, as well.
Don’t forget to check back with us for the latest news and updates to keep yourself informed, too.