An increase in the price of digital currency this year formed many crypto papers millionaires and made space for millions in this space. But this market is a rollercoaster ride. So as a result of that many have evaporated as the prices of crypto declined sharply. Whether we accept it or not, crypto will change the nature of money that is yet to be seen. So it is very important to debunk some myths on crypto. This article is all about crypto myths debunked.
Top Crypto Myths Debunked
The total value of the digital currency has attained new heights as per reports from CoinMarketCap, while it is the center and front of everyone’s life. We all are aware of digital currencies and it is presently the hottest topic in the financial space. But there are several myths about cryptocurrency that need to be debunked immediately. Here are some crypto myths debunked.
Cryptocurrency Is Used In Funding Criminals, Drug Activities, And Terror
Among the 5 myths about cryptocurrency, this is the first one. Like the banking system and cash, it is true that digital currencies can be availed for malicious purposes. But the myths refer to the belief that digital currencies are the den where illicit activities take shelter. In fact, according to a report, illicit activities amounted to $10 billion or 1% of all the transactions in crypto the previous year, reduced from $20 billion or 2% of all the transactions in crypto in 2019.
It is also a big myth that all transactions in digital currency are fully anonymous. Not only all the transactions can be seen on the blockchain network, all the government agencies generally have the sophistication to unravel the anonymity of identity afforded by digital currency transactions.
Government Can Stop And Ban Crypto
While the central government can ask the financial institutions to pause dealing with digital currencies or any business that is dealing with them, it is near to impossible to ban digital currency outright. Digital currency transactions are nothing more than sending an email and anyone who has access to the internet can deal with it.
Governments are aware of the risks that are related to crypto, simply they aim to exercise higher control over anything that can be thought of as a potential currency. But now a lot of governments have portrayed their willingness to look at digital currency with an open mind.
Cryptocurrencies are complicated to deal with
The underlying technology of cryptos may be complicated but a normal crypto user does not have to deal with it. Transacting in crypto can be as easy as doing a banking transaction with the banking application on your smartphone. This cryptocurrency criticism needs to be stopped immediately.
Blockchain has only one demonstrable use case: cryptocurrencies
A lot has been spoken about the use scenarios of blockchain, the technology that supports digital currencies like bitcoin. An opinion shared by some crypto experts is that blockchain has failed to portray any use case, and BTC is possibly the only object that has enjoyed a degree of success.
The truth here is innovations in the blockchain arena are taking place at a faster pace. For instance, smart contracts on blockchain can keep the contract like between a lender and a home loan recipient. It can make loan repayment fully automated from the crypto account of the beneficiary to the account of the lender.
Cryptocurrencies waste energy
This is the final one among the many crypto myths debunked. This is partly true so we would term it as a half myth. The truth is digital currency mining can be an energy-intensive exercise. But the other side of the truth is digital currency developers have worked hard, and attained success, in fetching down energy costs that are related to the settlement of transactions. Additionally, with the global thrust of the governments on pursuing renewables as an energy source, the energy consumption of cryptocurrency mining may begin to become less and less of an issue.
The crypto space is increasing with each passing day, and it is important for us to understand the market even better. This is the financial future of the world and in no ways can we ignore that. Along with that, there are many myths about cryptocurrencies that revolve around the market. The above article is about crypto myths debunked.