Digital currencies have confronted massive growth with significant popularity. You can check trading platform like the Ethereum Code App to get a deep analysis of bitcoin trading and the latest news related to bitcoin. The nature of these cryptocurrencies might be a bit obscure and anonymous. Still, as a decentralized ecosystem, virtual coins have played an essential role in making people aware of the trustless consensus mechanism.
You might find some difficulties getting to know about the notion of digital currencies with cryptographic complex in the first place, which is why the entire cryptocurrency community is full of myths. Just like knowing every cryptocurrency slang is essential, acknowledging the top-notch myths related to this marketplace is correspondingly essential. Here is are the most famous cryptocurrency myths that you should understand this marketplace better.
Myth 1
The utmost famous and frequent cryptocurrency myth is that this payment method is merely suitable for funding illegal activities. As a result, almost every digital currency transaction is being executed to fund illegal activities. However, many platforms have reported that cryptocurrency transactions used to fund illegal activities are significantly less in number. In short, cryptocurrencies do not seem to tie up illegal activities.
Undeniably, many incidents had a report in the past where criminals had the intention to fund nefarious activities with this payment. However, not even 0.35% of entire cryptocurrency transactions have been used to fund illegal activities. Therefore, the use of cryptocurrencies for illegal activities to an exceeding extent is a complete myth.
Myth 2
When it comes to cryptocurrency myths, digital currencies not having an actual value in the marketplace are the most common. For example, the spot value of the first-ever digital currency was not even one dollar when it was live on a trading venue for the first time. But it started to rise and is still rising in the spot price, market cap, and user base.
If bitcoin or any other cryptocurrencies don’t have an actual value, why do businesses and large MNCs accept this coin as a payment method? The decentralized ecosystem is rising, and this industry’s contract value is on a roll these days. The utility of famous cryptocurrencies like BTC is not merely limited to trading purposes, as you can purchase almost every goods and service using these payment methods.
Myth 3
The third most common cryptocurrency myth is that these digital currencies are not equipped with utter security. However, the core technology developed behind a full-proof decentralized digital currency is blockchain. And blockchain is analogous to a database that is immensely distributed amongst the participants of a cryptocurrency network.
Blockchain provides full-proof security to a cryptocurrency network by not letting people perform actions like double-spending. For example, if a user simultaneously spends one virtual currency at two addresses, blockchain rejects one transaction. But, people usually think, what if hackers attack a blockchain network and change all the data recorded on this ledger to overwrite the transactions.
Yes, thinking of something like that is pretty standard. Still, blockchain is not subjected to just one individual. Instead, it is distributed amongst a vast network so hackers cannot overwrite the transactions by changing the database on one blockchain copy.
Altering information in one block will not enable the hacker to overwrite the transaction data as they will have to change the previous block’s information. In short, to overwrite transaction data in a particular block of the blockchain, hackers will have to change the information of the entire blockchain.
The above-listed portion explains the top cryptocurrency myths.
Key Takeaways
The users are executing nearly every digital currency transaction to fund legal activities. However, the myth is cryptocurrencies have a tie-up with illicit activities. Digital currencies like BTC are equipped with an enormous value, and the software of these digital currencies is entirely secure.
However, the famous cryptocurrency myth related to this fact is that digital currencies do not have real-life value. Moreover, people think you have a higher chance of losing money in cryptocurrencies when you invest money. Cryptocurrency theoretically refers to a virtual currency but has a real value.
Cryptocurrency is not just a rising trend that might fade away in the upcoming decades as developers and digital currency experts have explored different use cases subjected to digital currencies.
