My name is Rhys, a first time dad blogging about my adventures and experiences of being a parent. [email protected]

5 big myths about cryptos busted

Ever Since its birth, cryptos have been experiencing a roller-coaster ride lapping up and down. It must have been a great experience for the investors as well as its onlookers. But there will be a transformation of money and finance with the evolution of technology. Visit the Bitcoin Era system the best trading bot used by millions of investors check it out

A lot of newbie investors find the crypto language full of jargon and intimidating. The complex terms used in cryptos can make their users difficult to understand. Many conservatives do not believe in the idea of supporting the new technology. They have resisted themselves by believing in certain myths.

Let us boil down to these myths to avoid false thoughts crashing into your mind:

  1. Blockchain and Bitcoin are two different names with the same resemblance

We need to understand that there is a vast difference between blockchain and Bitcoin. A blockchain is a distributed database technology specialized to record digital transactions. Whereas Bitcoin is a decentralized cryptocurrency running on this blockchain technology.

Blockchain is a powerful system that does not accept modifications. On the other hand, Bitcoin and other cryptos assets hold an intrinsic value. This value can undergo an exchange for fiat currency. Moreover, these digital assets ensure security with cryptography. This helps us to change the value of that asset.

  1. Crypto being widely accepted

The purpose behind designing popular digital assets like BItcoin and Ethereum was to ease the payment process in the open world. Their intention is to curb the use of centralized or fiat currencies, and credit and debit cards.

The use of decentralized currency costs a “transaction fee” to its user. This fee is far more expensive than what our banking system offers. Another drawback is that at times the transaction speed get super low around, 10-15 minutes. The reason behind this can be the undue time taken for validation of every transaction.

  1. The anonymity of transactions in crypto

The first thing that strikes our mind when the idea of using crypto drives is its anonymity. Crypto does not put forward open anonymity. The transactions made by a user are on the Blockchain. This blockchain consists of the receiver’s and sender’s addresses of their crypto-wallets.

All these transactions of sending and receiving which are recorded on blockchain are in a public view. Despite this, crypto provides anonymity when it comes to a user’s details like their name, contracts, and addresses. The security of this information is ensured and tracking also becomes difficult.

Anyhow, the central government has made KYC mandatory with any forms of exchanges so your addresses will be tracked down. Henceforth, the transactions of crypto are also known as psuedoanonymus.

  1. The cryptos will dwindle down

Cryptos are believed to be the “bubbles” that will burst down eventually. A recent claim made by “European Central Bank President Christine Lagarde” defines cryptocurrencies as “based on nothing”.

Speculation pops in when we decide whether it will wither over time or not. But however, its existence accelerates transformation in the field of finance and money. Moreover, it cannot be compared with something like currency notes or a price-based technology.

It is possible that single crypto might dwindle. But the technology remains still as the industry is yet to evolve. With the passage of time, there will be new tokens to look forward to and invest in.

It is fascinating to see huge brands promoting the use of crypto for easing payment methods. It has always been a worthwhile investment and holds an evolving sphere.

  1. Its utility is to promote illegal activities

This is viewed as the biggest myth of all time. Cryptocurrency’s aim is to help payment modes curb the use of fiat currencies. The purpose of crypto has never been to encourage any sort of malpractices. The main usage of this concept is for trading-buying or selling, easing transactions including money related as well as contractual.

Popular crypto, Ethereum has the feature of smart contracts. This feature enables its users to make any kind of transaction available possible on the blockchain network.

NFTs have also occupied considerable space in the market. These non-fungible tokens are meant to operate on smart contracts. Its design contains algorithmic contracts which are auto-operated when a condition is met.