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It’s been one of the biggest stories in both business and finance all year. What is it? What does it do? Is it even real? And, what can it do for me and my business? Although it has been around for a while, a great deal of skepticism still surrounds cryptocurrency. Here, we bust five cryptocurrency myths to put your mind at rest.
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“It Doesn’t Actually Exist”
Well, no matter how many people repeat this myth, cryptocurrency does exist. It’s not an illusion or something intangible that others can trick you into wasting your money on. Generally speaking, though, you can’t use cryptocurrencies to pay for goods in a traditional way, at least not yet. Moreover, due to their more seismic fluctuations on the stock market, many people simply don’t want to buy in. At least, not yet.
However, cryptocurrency is real currency. Some people already use it to pay for real goods and services. And this makes it a fundamental aspect of the modern business world.
“They Just Aren’t Safe”
Buyers who invest in blockchain would certainly argue against this claim. In truth, blockchain is actually one of the safest methods of transaction ever created. Therefore, this is one of the cryptocurrency myths that needs to get busted.
Like any new market, though, and particularly a digital one, early cryptocurrencies like Bitcoin were susceptible to hacking. However, as the market has advanced, and technologies have progressed and adapted, cryptocurrencies have become a much more secure investment.
“They Are All the Same”
Are you confounded by all the cryptocurrencies with all their different names? That they are all the same is another of the cryptocurrency myths. What’s more, it’s a big reason why businesses are still uncertain about cryptocurrencies in general.
As the market grows and evolves, more and more cryptocurrencies arrive. As a matter of fact, 2,486 were being traded as of November this year.
To be clear, different cryptocurrencies actually carry different purposes. For example, some, like Bitcoin, are designed to be spent as currency. However, another cryptocurrency with a notable name, Ripple, speeds up money transfers and international transactions.
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“It Is Not Regulated”
Along with safety and security issues, this is one of the cryptocurrency myths that keeps people feeling cautious about cryptocurrencies. As a matter of fact, fewer than 3% of Brits have bought any cryptocurrency. However, while this “myth” is technically true, regulations are on the way. Moreover, the market already looks after itself very well.
In fact, countries like Japan have made Bitcoin legal tender. Moreover, other major countries have made no moves to ban cryptocurrencies altogether. Cryptocurrencies are still taking shape and will continue to develop, and denying cryptocurrency altogether would be a poor move for governments. That’s because this would signal a lack of interest in growth, innovation, and technology.
“It’s Easy Money”
Certain parties will try to sell you cryptocurrency in this way. However, that doesn’t mean you have to buy in.
On the other hand, some investors have made some serious gains. However, as with anything else on the stock market, you can win and lose very quickly. While cryptocurrencies are changing and adapting, they tend to be volatile on the stock market. Therefore, never invest more than you can afford.
Learn What’s Real and What’s Just Another of the Cryptocurrency Myths
To keep up to date with the world of cryptocurrency, see the cryptocurrency news at BTCNN. There you can learn about what’s happening. You can learn what’s real, too, and what’s just another of those cryptocurrency myths.