The idea of cryptocurrency is not a novel one any longer. With the creation of bitcoin in 2009, it has come into the existence of the world and in a few years, the crypto-mania led to Bitcoin’s sudden surge to the top. This would imply that most of the incorrect assumptions about cryptocurrencies that have entered the general public’s mind throughout the last few years have evaporated due to this development. It is common with a newly invested thing because of lack of proper information that results in improper knowledge. Some facts about these types are such as this platform.
- Having no actual value in monetary terms:
This is a popular fallacy, but many people still believe that bitcoin has no actual monetary value in the modern world. Examining the prices at which bitcoins are currently trading will allow you to validate this assertion. There is a great deal of data to back this up when it comes to the value that the blockchain can provide. Blockchains have the potential to play a role in enhancing the efficiency of record-keeping logistics as an energy infrastructure gets more technologically advanced. Hence the manufacturing process of bitcoin that is actually the spreading of the Blockchain includes electricity and computational power that are real-life energy sources. So, blockchain technology and cryptocurrencies do have value.
- Transactions with cryptocurrency cannot be tracked:
However, this urban legend dates back many years and has no basis. This is a widely held fallacy and also one of the most harmful misconceptions regarding bitcoin. Though cryptocurrencies assure you a high level of security and the transactions are not even controlled by anyone, it is possible to trace all transactions made on a blockchain back to where they originated.
- The blockchain will fundamentally alter the way transactions are conducted now:
This just tells half the tale, to be honest. The sort of cryptocurrency we decide to utilize will also affect how we make payments. To our knowledge, cryptocurrencies may one day replace traditional exchange methods as the most common way to pay for products and services. But, this assumption is based on a common misconception that blockchain technology would completely transform the financial industry. The fact is, we’ll still be able to use our credit and debit cards, but in addition to that, we’ll have access to various cryptocurrencies as a payment option (hopefully).
- Cryptocurrency investments are not safe:
As a result of its significant volatility, Bitcoin and other cryptocurrencies were formerly seen as risky investments. The trading platform Immediate Edge has a specific goal: to help you with your stock, CFDs, cryptocurrency, and other investments. The situation is no longer the same. It is crucial to keep in mind that taking significant risks frequently results in substantial gains. Imagine all of those people who are now millionaires thanks to bitcoin.
- Criminals are the only ones that use cryptocurrencies and blockchain technology:
Bitcoins were used as the payment method for purchasing a spot on the illicit marketplace known as Silk Road, which was later taken offline. But, just because some exceptions happened you feel that only dishonest individuals use Bitcoin, you are setting yourself up for failure. The vast majority of the most important financial institutions in the world, including Microsoft, are beginning to accept cryptocurrency as a form of payment.
- Bitcoin investments are exempt from federal income taxation:
If your bitcoin investment generates a high profit, such profit may be subject to taxation. If you conceal information from the IRS, you could face severe penalties, including a hefty fine or perhaps time in prison. Remember that any earnings you make from bitcoin will be subject to taxation.
- Maintenance causes frequent halts in the trading of cryptocurrencies:
It’s a common misconception that the government can ban cryptocurrencies with little effort. Even though we have no idea how or why this urban legend started, it is very difficult to put a stop to it. The fact that decentralized currencies are more potent than currencies regulated by the government may be what makes many people afraid of them.
- The shop will never consider them for payment:
This common misunderstanding has never been validated by evidence to support its validity. Bitcoin is currently accepted by a wide variety of retailers, including Shopify, Etsy, and Expedia. With Bitcoin’s recent surge in popularity, you may be able to use it to pay for something.
Every one of our customers is given access to a wealth of instructional materials and professional advice regarding bitcoin trading. Like that, this information hopefully helps you clear out the myths about bitcoin or cryptocurrency.