As with any other fringe product or service, there are many myths surrounding cryptocurrencies. Cryptocurrencies are a new technology and asset class that first entered the scene with the invention of Bitcoin in 2009. They aren’t just for computer geeks and drug dealers trying to avoid the government. Relieving yourself of these myths will permit the formulation of a more accurate opinion. Best Crypto Storage It’s easier to make informed decisions when your knowledge is sound.
Myths regarding cryptocurrencies abound:
1. Cryptocurrency is illegal.
It depends on the country. As of February 2020, Bitcoin was legal in the U.S., Japan, the U.K., Canada, and most other developed countries. In the emerging markets, the legal status of Bitcoin still varied dramatically. China heavily restricted Bitcoin without actually criminalizing the holding of bitcoins. India banned banks from dealing in bitcoins and left the overall legal status of cryptocurrencies unclear. In general, it is necessary to look at Bitcoin laws in specific countries.
2. Bitcoin is the only relevant cryptocurrency. There are several other cryptocurrencies. All have their strengths and weaknesses. Bitcoin, is the oldest and most well-known of them. Most of the other cryptocurrencies are less than three years old:
- Auroracoin
- Blackcoin
- Dash
- Dogecoin
- DigitalNote
- Ethereum
- Litecoin
- Mastercoin
There are several others.
3. Only criminals have a use for cryptocurrencies. While cryptocurrencies continue to be used for illegal activity, cash is still king for illegal transactions. Industries like finance, medicine, energy, real estate and voting can take advantage of blockchain technology.
Cryptocurrencies such as Bitcoin and Litecoin, amongst others, are digital money. They can be used to purchase goods and services such as food, flights or even video game systems.
There are reputable retailers that accept cryptocurrencies, including Microsoft and Dell.
4. I can get rich with cryptocurrency. The potential for profits does exist. People have gotten wealthy through increases in the value of cryptocurrencies. However, just as many people have lost a tremendous amount of money, too. It might happen, but you’re unlikely to retire on your cryptocurrency purchases.
5. Cryptocurrencies are subject to hacking. Bitcoin merchants and wallets have been subject to hacking activities. Best Crypto Storage using a platform to trade in cryptocurrencies is just like any other platform for trading. Insufficient security is always a potential problem with cryptocurrencies. Protect your wallet and you should be fine.
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