Cryptocurrencies have seen massive popularity worldwide ever since Bitcoin was first introduced back in 2009. But here in Europe, cryptocurrency enjoys an entirely different level of popularity. In fact, Europe is now being hailed as the world’s crypto capital.
While cryptocurrency is reigning over the lives of many millennials in the region, it’s clear that not everyone is quite ready to jump on the cryptocurrency bandwagon. Let’s explore why.
Well, it could have a lot to do with the fact that cryptocurrency is not only invisible, but it’s also intangible, and its creation and function are tough to comprehend for anyone but highly tech-savvy individuals. So, a significant percentage of the population doesn’t really understand how cryptocurrency, crypto trading platforms, or Bitcoin wallets work.
However, the fact is that cryptocurrency is talked about a lot. But since many people don’t actually understand it, there’s a lot of misinformation out there. Moreover, cryptocurrency’s early history is tainted with stories of theft, hacking, and fraud—needless to say; this is doesn’t help the situation either.
But if you’re interested in cryptocurrency, it’s essential to look past the cloud of myths—it’ll help you make the most of your crypto ventures.
So, here are the myths you can steer clear of.
Myth No.1: Cryptocurrency Is Used Heavily for Illegal Activities
Reality: This is one of the most widespread myths about digital currencies, and somehow it refuses to die down. This is probably because a part of this is true.
In the past, during its earliest years, some people did use cryptocurrency excessively for the wrong means. Criminal organizations even used it—remember the Silk Road?
However, it’s important to remember that every form of money has been used for illicit activities at some point. Money is often the very root of the problem.
But with cryptocurrencies, the problem has been tackled to a great extent since its inception. The number of illicit activities involving cryptocurrency transactions has fallen significantly in the past 2 years.
Moreover, governments and several private agencies have put several practical measures in place to combat the illegal use of cryptocurrencies. And most importantly, it’s crucial to remember cryptocurrency was never meant to be a currency for criminals, as most people seem to believe.
Myth No. 2: Cryptocurrency Isn’t Secure
Reality: If you’ve heard about cryptocurrencies, the chances are that you’ve heard about blockchain too. In the simplest terms, blockchain is an entire system that records information in a completely secure manner, and it’s pretty much impossible to hack or change the system in any way.
Also, this database is the primary technology backing cryptocurrency, and it uses sophisticated encryption techniques to record each transaction on a new block. Moreover, the information on every transaction is verified by automated verifiers.
So basically, the entire system of linked blocs, verifications, and encryptions guarantee that there are no ways to steal cryptocurrency by manipulating the blockchain in any way.
Myth No. 3: Cryptocurrencies Can Be Counterfeited
Reality: This is one of those misconceptions that’s quickly cleared with a bit of research. If one understands cryptocurrency at its very core, it’s easy to see that it’s absolutely impossible to counterfeit digital currencies.
This is because cryptocurrency is directly linked to a process called cryptography. Cryptography is literally a way to protect information by changing it to a secure format. This ensures that Bitcoin and other digital currencies can’t be replicated.
In fact, when it comes to Bitcoin, its system is designed in a way that makes it impossible to generate multiple transactions in a single operation.
Myth No.4: Cryptocurrencies Are Just A Scam
Reality: When cryptocurrency first came into the limelight, a lot of people thought of it as a scam, and that made sense to a certain degree. It was a currency you couldn’t see or touch, and very few people treated it as something valuable—so it made perfect sense to be skeptical about it.
But more than a decade has passed since, and cryptocurrency is becoming extremely common, and there’s more than enough research on it as well. Moreover, governments have been trying to find ways to regulate them while several retailers and businesses have started accepting them as a medium for business transactions.
Clearly, cryptocurrencies aren’t a scam in themselves. But that being said, it doesn’t mean you can’t be a victim of a scam linked to digital currencies, but that could be said for any other form of conventional currencies too.
Myth No. 5: Cryptocurrencies Are Only A Fad
Reality: Everything that has changed the world for the better was considered a fad at one point in time. Think of computers, the internet, and almost every modern technology’s first interaction with the world. In the very beginning, people understood very little about these innovations, and only some tech-enthusiasts were obsessed with them. But today, these technological innovations have taken over the world.
Similarly, we can’t really say whether cryptocurrencies are just a fad or whether they’re here to stay. At the moment, they’re still enjoying a lot of popularity, and it looks like they will remain a part of our future in one way or another.
If you’re still skeptical about cryptocurrencies or are afraid of possible scams in general, it’s important to use a secure cryptocurrency trading platform like Crystal Ball Markets. It’s a reliable online trading platform and can help you explore crypto trading options without any worries.
Explore their website for more information, and make sure to register yourself right away to get started!
About the Author
The author is a former computer scientist and a certified cryptocurrency expert with years of experience working on digital assets and blockchain. He and his team of experts offer private cryptocurrency consultancy to their clients and share market insights and trading tips on several online trading platforms and other finance-related publications.