Debunking Crypto Myths

More often than not, when cryptocurrency is being discussed there will be one or two misconceptions or myths tossed around. Unless you are the most savvy of crypto investors, some of them may appear to be true. In this piece, we debunk some of the most common cryptocurrency myths you may have heard.

Cryptocurrency and Blockchain are the same exact thing

False - While the two certainly go hand in hand, it is important to not only know the difference but understand each role play in the growing cryptocurrency market. Blockchain is the foundational technology for which cryptocurrency resides upon. Not only that but blockchain allows for the utilization of many other applications. Blockchain technology is secure and growing more widespread in its usage. From hospitals sharing medical data to record companies using the technology to track music royalties, blockchain technology is becoming more widespread in its utility. When discussing cryptocurrency, it itself uses blockchain technology for secure encryption in order to verify when funds are transferred from wallet to wallet. When a transaction happens, first the network of nodes uses complex algorithms in order to not only verify the transaction but also create a permanent, unalienable block that is then added to the blockchain. The two functions help one another, without one it is hard to believe the other would thrive or even exist.

In order to invest, you need a vast experience in tech to have a fighting chance

False - With the world of cryptocurrency booming, it is seeing a large influx of new investors into the game and some would say unless you are deeply entrenched into the tech world, you won't fare well in cryptocurrency investing. In reality this couldn't be further from the truth. The ease of investing, buying, trading and selling cryptocurrency is more prevalent today than it was even 10 years ago. There are apps, guides, and so much helpful information out there to aid the common man investor that you don't need to have a degree in tech to navigate the crypto world. You don't need to roll your sleeves up and learn programming to potentially turn an investment in cryptocurrency. Like any version of investing, it is always crucial to have an understanding of potential risks and rewards before jumping right in but having financial know-how is more important than learning coding.

When it comes to cryptocurrency, all its used for is illegal activity

False - While cryptocurrency has an unfortunate association with illegal activity with people using the technology for nefarious reasons, largely due to its anonymity. The reality is a minute fraction of activity surrounding cryptocurrency is criminal in nature. Analysts estimate that a mere .34% of cryptocurrency activity was used for illegal purposes according to research from Chainanalysts. And while there is a level of anonymity related to the blockchain technology for which cryptocurrency is built upon. While there was a time when a majority of Bitcoin activity was concentrated and used within black markets, it is more evident that today a majority of activity is legitimate and legal. With some of the few myths debunked in this article, hopefully you can feel more confident with the state of cryptocurrency and other digital assets.

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