Cryptocurrencies have been trending these days, with a lot of investors turning towards these amazing digital currencies. But few are concerned about the cryptocurrency myths that are being carried forward day by day. So to bust those myths here is what all you need to know about the top cryptocurrency myths.
Myth#1 Cryptocurrency is not taxed
Most people think that cryptocurrency is taxed but it is not. This is one of the biggest cryptocurrency myths in the crypto market. The central authority does not have any control nor do the banks. But it doesn’t rule out the fact that the digital currency evades being taxed. It is just considered as any other transaction and if and only you are taxed when you sell it or someone pays you in cryptocurrency.
Myth#2 Cryptocurrency has no real value
This is considered to be one of the biggest cryptocurrency myths that it has no real value. But people who trade in cryptocurrencies truly believe that it has huge value in the near future. As long as there are people who believe and understand about the cryptocurrency and its value then, it is going to stay in the crypto market.
Myth#3 Crypto is illegal
Even though cryptocurrency has been banned in countries like Russia, Algeria, Bolivia, Ecuador and Trinidad, on the other hand EU nations, G7 nations and the USA have made cryptocurrencies a legal tender. So thinking that crypto is illegal is one of the cryptocurrency myths which is not true at all.
Myth#4 Cryptocurrencies are for criminals
While recounting the incident of the Silk Road Raid in 2013 disclosed the use of millions of dollars in Bitcoin for drugs and human trafficking. Cryptocurrency is yet to be regulated to avoid such incidents. But in a few countries the government has mandated a few of the procedures in place for trading in cryptocurrencies to reduce the chance of such unlawful use of the digital money. This is one of the cryptocurrency myths that exists in the market.
Myth#5 Cryptocurrency is easy to hack
Trading cryptocurrencies is as the other trades. Upping the security on wallets where trading in cryptocurrency is facilitated is the only way to secure your wallet and enable safe transactions. Using a proper website for making transactions can avoid other hacks.
Myth#6 There is only one blockchain
This is one of the cryptocurrency myths that exists in the market, but it is not true at all. There are many blockchains to cater to different problems whether it be public or private versions of blockchains, the source may be closed or open. And on the other side one type of blockchain can be backed by Bitcoin and others might be backed by cryptocurrencies like Ripple, and Ethereum.
Myth#7 Blockchain is a Cloud like database
Most people think that it is a blockchain which is like a cloud but this is one of the cryptocurrency myths that exists in the market. Blockchain is the ledger that is backing cryptocurrencies and ensures that transactions are safe and are not repetitive. But remember that blockchains cannot store any files; it can only contain a code for the transaction that takes place.
Myth#8 Cryptocurrency is not accepted as payment
People are steadily moving towards investing in cryptocurrency. Big tech companies like Fiverr, Microsoft, Dell, and Expedia have already started to accept Bitcoin. This is one of the cryptocurrency myths that exists in the market. But while buying cryptocurrencies is not illegal, cryptocurrency are recognized as legal in most of the countries these days.
Myth#9 Cryptocurrencies are anonymous
The blockchain is a public ledger that maintains a record of everything. There is a sense of anonymity but in extreme cases, identifying users and their details is a big task. This is one of the cryptocurrency myths that exists in the market. As any other platform, there is user anonymity but which is not absolute too.
Myth#10 Blockchains have no business
Blockchains are the perfect database- they store information or data, keep it secure, permanently store records and transactions are traceable and cannot be easily hacked. This is one of the cryptocurrency myths that exists in the market.