Individuals and firms, especially those who have only superficial knowledge of cryptocurrency, intrinsically to spread myths. Further we will analyze them in detail and tell you why myths have nothing to do with reality.
Myth 1: Cryptocurrency isn’t real money.
So, what kind of money is real, then? Cryptocurrency is money that intended for other purposes, namely cryptocurrencies complete the money we are used to and grant a number of benefits. Cryptocurrency is better than money because the government cannot dip hands into your wallet.
Through cryptocurrency you can resolve some situations. Which ones? Let’s look at.
- If you need to access your money at any times, anywhere in the world here and now, with cryptocurrency it’s possible. You don’t even need to have an internet connection for that, in case you have a cold wallet. Usually, a cold wallet is a USB flash drive with a special program on it. More by token this method of storage is considered the safest. Although the internet is full of stories about how USB flash drive with bitcoins worth millions of dollars were broken.
- If you don’t want anyone to know that you have money then you have an opportunity to transfer money secretly (for example with Monero or Zcash cryptocurrencies). No one but you knows that you have cryptocurrency and what you do with it.
- If you want to have full control over your money, then you should know that getting your money back isn’t always easy. Your bank account can be blocked, as sure as by the bank itself or by the authorities. This isn’t possible with cryptocurrency! Only you manage your wallet and no one can block it.
Myth 2: Cryptocurrencies are pyramids.
Cryptocurrency isn’t a pyramid, except for pyramid schemes that impersonate cryptocurrency or scams. A pyramid is a financial system known as a Ponzi scheme. It’s a scheme in which investors earn an income through the inflow of new depositors. Namely, newcomer depositors sponsor earlier investors. It’s the same way our pension system works. And we aren’t kidding. Cryptocurrency is structured differently and its buying doesn’t guarantee income. Cryptocurrency as an effective digital instrument solves specific problems of individuals and firms. But its buying doesn’t mean guaranteed profit. Cryptocurrencies are convenient, fast and reliable, but its has nothing to do with pyramids. However, it’s worth to understand that all cryptocurrencies are sensitive to rate fluctuations. And when you buy cryptocurrencies, you can become both richer and poorer.
Myth 3: By virtue of cryptocurrency, I can become richer.
That’s a downright lie! Just like a samurai sword won’t make you a samurai. By the way, this reminds me of a joke. Two photographers meet. One says to the other. “I’m not a photographer anymore. I’m a surgeon now”. “Why?” – asks the other. “I bought a scalpel” replies the first. This is about the fact that cryptocurrencies are just an opportunity, but in order to use cryptocurrencies and get income, you need to know how to work with cryptocurrencies.
How do you make a profit with cryptocurrency? It’s possible with investments, for example. You research, choose and but coins. After cryptocurrency of value increases significantly, you sell it and fix the profit.
Trading. Register on a cryptocurrency exchange and trade cryptocurrency using its price fluctuations. If the cryptocurrency is cheap, you buy it and if the cryptocurrency is expensive, you sell it. The first view it seems simple, but it’s only the first view, so it’s advisable to start with small sums.
Mining or cryptocurrency mining. With coins you can get passive income by “freezing” them. When coins are “frozen” coins turn into analog high-performance processor. And it facilitates transactions. Your coins work, you make a profit. The more coins, the higher the profit.
Myth 4: Cryptocurrencies aren’t secured.
The United States dollar is secured, but your cryptocurrencies aren’t. The United States of America has oil, an army and a printing press, but cryptocurrencies only have holes in their sweaters. It’s not exactly.
As a preliminary it’s worth understanding what exactly is the most valuable resource on the planet right now. Let’s play a game. Guess what it’s? Oil, gold or emeralds? We’ll give you a hint. These are the resources that advanced countries are looking for all over the world. Have you guessed? The correct answer is technology and highly qualified specialists. It’s these resources that are found in the world of cryptocurrencies. There are the most current and modern technology, highest earner specialists. This industry is now the vanguard of financial and technical progress. This is what cryptocurrencies are secured by. Even now, problems of the future are solving by virtue of it, that most people don’t even think about.
Myth 5: This bubble will burst soon!
You can tell right away that your conversational partner understands little about finance and how economic models work. The same thing was said about the dotcom bubble. Now companies enter at the time like Amazon, Ebay and Google actually handle entire industries of modern economy. Cryptocurrencies are following the same path, only at a faster pace. Investors, who will preserve cryptocurrency, they will become as rich as holders of Amazon or Google stock. As we can see, cryptocurrencies are shrouded in myths that, while seemingly true the first view still distort the real situation.