The concept of cryptocurrency is something that not a lot of people understand. Oftentimes, those who have no actual experience or knowledge of cryptocurrency would form their own opinions and interpretations of it and pass it off as fact. Below, we debunk five (5) of these myths so that you may dive right into the ever growing world of cryptocurrency well informed.
Myth #1: Cryptocurrency = Bitcoin.
Sure, we understand where this is coming from. Bitcoin is the first decentralized cryptocurrency ever made. It remains to be the biggest, most talked about cryptocurrency today but it is not the only one. Bitcoin is but one of the many other types of cryptocurrency out there. There’s Ethereum, Ripple, and Litecoin, to name a few.
In relation to Bitcoin, there is another myth flying around:
Myth #1.1: You can only buy Bitcoin in whole/by one coin.
This myth turns off a lot of potential investors as the price of one Bitcoin is very high nowadays. The truth is, you can actually buy Bitcoins by units or Satoshis. One Bitcoin is made of 100,000,000 Satoshis.
Myth #2: Cryptocurrency is unsecure and susceptible to hacking.
Technically, this isn’t really that much of a myth—it’s a possibility that is wildly blown out of proportion by critics. In theory, cryptocurrency is as susceptible to hacking as any of your software or hardware. It’s as accessible to crooks as your bank account is.
However, as the crypto market is growing, companies continuously take steps into making their digital currencies more secure. Technologies are continually developed to strengthen and improve digital currency security features.
The safety of one’s cryptocurrency and digital wallet would ultimately depend on the user, himself. Just like with material valuables, if one does not take extra care in securing his digital currencies, one cannot expect them to be safe.
Myth #3: Cryptocurrency is only an investment but cannot be used elsewhere.
This is, of course, false. Companies around the world are starting to give in to the rising popularity of cryptocurrency. Online, you could find a number of merchants who accept cryptocurrency in exchange for their products and services. You can buy food and airline tickets, pay for your hotel rooms and even purchase a car!
Here in the Philippines, however, it gets a little tricky.
We believe that as digital currencies continue to grow, more and more merchants will accept it as a legitimate mode of payment.
Myth #4: Crypto trading and exchange calls for technical expertise.
Dealing with cryptocurrency is fairly easy or, at the very least, it is easy to learn. In fact, compared to trading stocks online, crypto trading is a breeze!
And if you come across any difficulties, we here at CryptoClub PH are always ready to be of assistance.
Myth #5: Digital trading opens doors for illegal act funding.
A lot of people think that since cryptocurrency trading does not go through the same procedures as would any financial institution governed by the Anti-Money Laundering Council (AMLC), criminals take advantage of it as a platform for them to fund their illegal acts.
Though it is true that cryptocurrency companies make sure that their clients’ privacy is valued, transactions create a data trail that can be traced with the right forensic intelligence.
Many criminals who have tried to use digital currency have been found and arrested.
Do you have any Digital Currency Myths you want us to debunk? Send us your questions at facebook.com/cryptoclubph and we will be happy to answer them for you!