The world has experienced some life changing inventions in recent years, many of which have considerably improved the quality of life. One such change was the invention and introduction of cryptocurrency. Cryptocurrency is a virtual currency that has changed the traditional methods of handling money and making investments.
Cryptocurrency works on blockchain technology. The goal of creating the cryptocurrency is to remove the third party while transferring money which lowers the transaction charges and makes it completely safe and secure.
Bitcoin is the first cryptocurrency that came into existence in 2009, nowadays there are thousands of cryptocurrencies are available in the market which are estimated worth around 2 trillion dollars. Since the launch of bitcoin, there is also lots of misinformation roaming around the market. Cryptocurrency is intangible, invisible. Also, it is a complicated technology that is sometimes hard to understand. Users can visit the following website to read more.
Since crypto came into existence it has seen tremendous growth in the market. Additionally, it has been subjected to various allegations, most of which are completely bogus and false. Given below is a list of a few false statements about Bitcoin and other cryptocurrencies, along with the truth and complete analysis of the same.
1. Cryptocurrency has no real value
In today’s developing world, it is in human nature that they believe in what they can see. Since cryptocurrency is intangible in nature, it is hard to believe that cryptocurrency can have a value equal to paper currency.
Many of the investors are not aware of how cryptocurrency works or how it is used in daily life transactions. So they believe that cryptocurrency has no real value which is not true. In today’s world, there are so many tech giants and many multinational companies which are now accepting cryptocurrency as a mode of payment in exchange for their services and products.
2. Transactions are Anonymous
Initially when Bitcoin was released in the market it was said that the buying or selling or doing any payment will be anonymous in order to maintain the user’s privacy. But in recent years it has been found that cryptocurrency transaction is taking place to fulfill unlawful and other illegal activities.
Keeping in mind these things it was decided that the cryptocurrency transactions address will be recorded permanently and publicly on a network, although it is not controlled by any government authority. These addresses can not be leaked by anyone as these crypto websites and ledgers make use of blockchain software, and it maintains the privacy of the users.
3. Cryptocurrencies are Tax-free
Many of the investors and buyers think that the cryptocurrency is not controlled by any government authority or any bank institutions, so they can avoid taxes which is false.
Since Crypto is legal in many countries, the government charges tax on the investor’s income. The government has set some limits, and just like any other asset, crypto is liable to taxations. If the investors exceed that limit then he or she or they are liable to pay tax.
4. Cryptocurrency is a scam
As already discussed above, the investors are not fully aware about cryptocurrency. It is easy for scammers to manipulate the investors. There are so many online platforms that are available in the market where investors easily get scammed.
However, if the investors are a little cautious about the scams and he/she has little knowledge of cryptocurrency, then there will be a high chance that the investors will not get scammed. In order to be safe and secure from scammers, investors should use a trustable platform to perform any cryptocurrency exchange and transactions.
5. Risk of Hacking
It is one of the biggest myths which is roaming around the market, which usually makes the investors run away from the cryptocurrency. Cryptocurrency or blockchain is very new to the industry. There are very few chances that any experienced hacker will be able to understand the high-end technically tangled blockchain of the ledger in years.
Since cryptocurrency came into existence over a decade ago, only about 25% to 30% of the world’s total population has clearly understood the concept of the same. Since it is widely new to people, there are very less chances of hacking which eliminates the risk.
But still, if you are worried about hacking you should always prefer a trustable online platform to perform crypto transactions, and never invest all your savings at one time and always keep an eye on the regular fluctuation of cryptocurrency prices in the market due to improvement or decrease in market capitalization.
6. Cryptocurrency can be Counterfeit
It is one of the stretched myths in the market, and is not exactly a myth. Whether you call it a myth or confusion or a problem in understanding how Cryptocurrency works. Since there is no physical existence of cryptocurrency, thus, the chances of counterfeit arise. However, technically it is not true.
The reason behind this is that all cryptocurrencies run on a unique code, just like every computer system has a unique IP address. In this way, Bitcoin and other cryptocurrencies are identified and processed. This reduces counterfeits dramatically.
Conclusion
Cryptocurrency has been available in the market for more than a decade now, and it is here to stay, at least until the availability of the internet. The various digital currencies are easy to use, and maintain an automatic ledger which makes it easier for the users and auditors to keep a record of the various transactions done using the same.
Additionally, these make use of blockchain technology, which is a high-level technology used to make the transactions completely safe and secure. The technology also helps in maintaining the complete privacy of the users and makes it literally impossible for any third-party person or website to track the users or trace their transactions. All this makes Bitcoin and other cryptocurrencies stand where they are today and have the trust of millions of users.
