Myths About Cryptocurrency – What are the Common Ones

There are many myths about cryptocurrency I would like to refute them

Cryptocurrency has become the ultimate buzzword in the modern world

Most of the myths we can trace back to misinformation

It’s obvious that cryptocurrency is intangible and invisible

Not to forget, the technology is quite untapped and complicated

It wouldn’t be wrong to say that history filled cryptocurrency with fraud tales, including hacking and theft

There are few affiliate links, if you click a link and make a purchase, I may receive a commission at no extra cost to you

myths about cryptocurrency

Having said that, there are various myths when it comes to cryptocurrency which confuse beginners

So, with this article, we are sharing the common myths related to cryptocurrency

The transactions are anonymous

When Bitcoin first became popular

It was always billed as the anonymous exchange medium

And was invisible to hackers

In addition, the law enforcement agencies couldn’t trace it

However, recently, there was a crypto crackdown against money launderers in China

Which shows that’s not the case

The cryptocurrency transactions are available on the network and the latter can permanently store

However, we do want to add that there are no link between the names and the addresses

But they can be linked to the real identities

Society ofen say that money is more anonymous when we compare it to cryptocurrency

So here goes the first myth about cryptocurrency.

It’s cash for the criminals

In the majority of cases, cryptocurrency-related criminal activities we can tracedback to 2013 and the crackdown on Silk Road

This is a famous black market, where Bitcoin was the main currency

However, why don’t we say the same thing about real currency

As it’s always been the exchange medium for criminals?

For this reason, the governments launched Know Your Customer policies to implement verification regulations

It’s the way of eliminating criminal elements

So, cruminals somehow used Bitcoin

But millions of other people around the world hold Bitcoin

So this is the second myth about cryptocurrency

It is counterfeit

There are some counterfeits when it comes to cryptocurrency

But not all of them are

These are myths related to cryptocurrency

If we look at the meaning of cryptocurrency

The word crypto comes from cryptography

Which is the process that eliminates the chances to counterfeit the digital currencies and Bitcoin

The Bitcoin system protocol prevents the chances of double-spend which is to generate more than one cryptocurrency transaction with one operation

It is to eliminate crime associated with counterfeiting the cryptocurrency

IRS cannot track the crypto-based income

This anonymity myth about cryptocurrency has given rise to this new myth

The myth says that if you receive payment in Bitcoin IRS won’t be able to track it

However, back in March 2021

Forbes reported Operation Hidden Treasure which is the program led by the Fraud Enforcement division of the IRS

The IRS criminal investigation professionals manage this program

Who were chosen for their training and background in cryptocurrency

Having said that, the leader of the program only said, “We see you,”

Which was the message to everyone who thought the IRS cannot track the transactions

Mining is bad for the environment

Crypto mining has always been targeted by environmental advocates

Because it was termed the energy-hogging capacity

In addition, they said that cryptocurrency mining sucks up fossil fuels

Honestly, it was true at first then it became a myth about cryptocurrency

But recently, China had the crypto crackdown which reduced global mining by 50%

Which eliminated the utilization of inefficient hardware

In addition, the U.S. has set strict environmental regulations that will positively influence the environment

It’s only for speculative investing

For the most part, everyone thinks that cryptocurrency is more than a widely-known speculative investment that doubles up

But it’s not true

According to research, the Bitcoin network records around $10 billion worth of transactions in a day through different bitcoin investment solutions

Governments can ban it

Given the decentralized nature of Bitcoin

The governments won’t be able to ban it

There are so many countries where cryptocurrency is legal

Because it is based on blockchain technology

The law enforcement agencies or the government regulate that

Which is why they don’t have the capacity or power of changing the cryptocurrency or making modifications

Only tech geeks can use it

Nope, this is one of the utter myths about cryptocurrency

Because anyone can use cryptocurrency, irrespective of their technical experience

This is because the basic knowledge of investment and usage is all you need to trade cryptocurrencies

Many companies and brands allow users to pay for their services and products through cryptocurrency

Which means it’s not that hard to use