7 Popular Cryptocurrency Myths Debunked

Cryptocurrency has flourished quite a lot in the past few years and its market capitalization of over $1.4 trillion is proof of that.  With increased popularity come a huge number of myths and misconceptions which if not dealt with, can lead to financial loss.

This article is about some of the most common myths surrounding Cryptocurrency. So many people believe in these without doing proper research or taking the time to ask a professional.

Knowing these myths, you will be able to better handle your Cryptocurrency and pave your way to financial independence in no time.

Here are 7 populate cryptocurrency myths debunked with proper explanation.

Cryptocurrencies are Often Involved in Illegal Activities

The reason people believe this is that initially Crypto was in fact used for illicit activities taking place on the dark web. However, modern crypto is not like that at all.

According to a chain analysis report, out of all the crypto transactions in 2020, about 0.34% were for illegal actions. This number is even lower than the one in the conventional banking sector.

The legitimacy of this currency is apparent from the fact that many leading investors in the world have gone for this currency, and they consider it as a safeguard against inflation and a foolproof way to manage their assets. For example, LPNT is a safe to use latest cryptocurrency that you can check out. You can do the lpnt login to learn more about it.

Crypto is Only for Geeks and Rich People

Crypto is a decentralized currency which means there are no government institutions, banks, or other financial intermediaries involved in the transactions.

This makes cryptocurrency empowering for common people. Some people find these currencies hard to understand which creates such misconceptions. Just remember that the underlying principles in crypto are the same as conventional currency with some minor changes.

Cryptocurrency is Bad for the Environment

There is no doubt that mining for crypto requires you to spend so much energy from your computers and laptops which results in harmful emissions. However, several developments have been made to reduce these effects and they are working.

For example, new projects working on the proof-of-stake mechanisms are underway which are much more eco-friendly. There are some crypto projects that are investing in carbon-neutral initiatives as well. Overall, the whole industry is turning to clean energy sources to help keep the carbon footprint to a minimum.

Cryptocurrency is Just a Scam

Financial scams can happen in any sector and investment endeavor. Whenever you are investing in something that you know little about, you are always taking a big risk. However, we assure you that Cryptocurrencies aren’t a scam because if they were, many countries would have outlawed them from the start.

In order to be successful in crypto, as in any other financial endeavor, you need to learn to minimize your risks and proceed with utmost caution.

You are Too Late to Invest in Cryptocurrency

Anybody who wants to enter in the Cryptocurrency industry is still in the initial phase since the currency is still developing and there are so many people that do not know anything about it yet.

There are new altcoins and digital currencies coming into the market from time to time and staying on top of these will help you gain financial freedom much faster and with minimum risks.

So, it is not too late to go for cryptocurrency even at this point and that is why you need to learn as much about it as you can.

There are No Physical Assets Behind Cryptocurrency

This is true to some extent but it is also equally true for the currency that you normally use to buy daily commodities. Many nations have scaled down their gold reserve system which has led to a significant reduction in the intrinsic value of these bills.

The price of Cryptocurrencies like bitcoin is driven by market dynamics which means there is no need for the involvement of physical assets. The real value of money is based on public perception and trust and that is also the case for cryptocurrencies. You can use these currencies to run ads as well. You can check out the Ads Exchange Login platform to learn more about it.

Cryptocurrency is Unstable

One of the biggest uses of this currency is for people who want to control their wealth properly and are looking for ways to transmit it across various regions without having to pay crazy amounts of taxes.

So, as long as there are such people in this business, Cryptocurrency is going to be there. This means you can easily trust this currency and invest in it.

Final Thoughts:

So, these are some of the biggest myths and misconceptions about Cryptocurrency that are holding so many people back from investing in this profitable and less risky industry.

Before getting into Cryptocurrency, it is always a good idea to gather all the information that you can about its various aspects. This will minimize your risks and give you the confidence to make the right choices. 

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