Busting 7 Myths About Cryptocurrency

Bitcoin has been the talk of the town in recent times. Its volatile price market has been taking over the news, and more and more people have been attracted to investing in cryptocurrency.

However, only a few know the meaning behind cryptocurrency and Bitcoin, also check out this link www.profit-builder.org

Bitcoin is the first known form of cryptocurrency ever introduced. It was introduced back in 2009. But what is it? Well, bitcoin is a purely virtual form of currency that is used in such a way that the legitimacy of the transaction does not get ruined.

Myths About Cryptocurrency

At present, 1 Bitcoin is worth 19,198.40 USD. However, given the extreme volatility of bitcoin, its value is sure to be different than this at the time you stumble across this article.

Now that we know what Bitcoin is and its value, let us further explore the world of bitcoin. Even though it has been over a decade since bitcoin first came into play, most people are still not fully educated about this currency.

Many are even vehement about accepting it. If you are unsure about the trading process, try using platforms such as profit revolution to help you out.

Given the limited number of resources present to explain the world of cryptocurrency, there are many myths clouding people’s minds. In this article, we will work on busting some common myths surrounding cryptocurrency and clear the air.

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7 Myths About Cryptocurrency

Here are the 7 most common myths surrounding cryptocurrency.

1) Cryptocurrencies are not Secure

This is false and is mostly propagated given the lack of awareness surrounding bitcoin technology. Bitcoin is traded on a technology called blockchain technology.

This is a public ledger technology that keeps track of all transactions taking place using cryptocurrency. Each piece of information is added in the form of blocks and is encrypted.

Although no banks are required for this verification, that does not necessarily mean it is unsafe. If you want extra security, using hot or cold wallets may be a good idea.

2) Cryptocurrencies are not Taxed

This transaction in question refers to you selling cryptocurrency or receiving it as a form of payment. Although no banks or central authorities are involved in cryptocurrency trading, this does not mean cryptocurrencies are not taxable.

It is just like any normal transaction for which you are taxed every time a transaction occurs.

3) Cryptocurrencies are Illegal

This is not entirely a myth. Countries such as the USA, the EU, and the G7 nations have made cryptocurrency transactions legal. Cryptocurrencies haven’t gained legal status in some nations like Algeria, Ecuador, and Trinidad.

4) Cryptocurrencies are Easy to Hack.

This is as false as it can get. Cryptocurrencies are not more or less safe than any other form of currency. They are transacted on an encrypted public technology.

As long as you take proper security measures with the ownership of your cryptocurrency, including getting hot and cold wallets, your digital currency should be just fine.

5) Cryptocurrencies are Just one Giant Block

As mentioned before, cryptocurrencies work on blockchain technology. It is, in the word itself, blockchain. As each new transaction occurs, a new block is added to this chain and encrypted to remain safe from unconcerned parties.

Therefore, the myth about such currencies being one huge block is a myth.

6) Cryptocurrencies are not Accepted as Payment.

This just depends on whether your country has yet to legalize the use of cryptocurrency there. If your country allows bitcoin transactions, such payments are possible as long as all parties are comfortable with it.

Since right now, bitcoin and cryptocurrency payments are rather expensive and extremely slow, sometimes taking up as long as 10 minutes of your time,  a more efficient payment model has been envisioned.

Myths About Cryptocurrency

7) Cryptocurrencies are Bad for the Environment

This myth comes with only good intentions, and understandably so. Several forms of cryptocurrencies utilize great energy to keep their operations going.

However, certain types of cryptocurrency use more sustainable forms of energy. Therefore, consistent effort is being made to reduce the carbon footprint of these digital currencies.

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In this article, we have talked about bitcoins and cryptocurrencies and debunked the most common myths surrounding cryptocurrencies, their use, and storage. Hopefully, this article helped clear the air and made you more sure about cryptocurrencies.