Cryptocurrency is a huge new sector that is easy to misunderstand. Like any new phenomenon, a lot is being written about cryptocurrency, and not all of it is accurate. Naturally, there is bound to be some myths mixed up with the facts. Let’s take a look at some of the most common cryptocurrency misconceptions.
1.) It is too late to invest in cryptocurrency
With everybody showing a sudden interest, it can seem like you have missed the cryptocurrency boat. However, it is likely that it is far from being too late to explore this investment option. In fact, when compared with other investment opportunities such as equities, regular currencies, gold, and even mutual funds, cryptocurrency is a relatively young technology, which means that as a market, cryptocurrency has efficiencies that it has yet to find, and gains it can make as it matures. As a few popular publications have put it, the world is just getting started with Bitcoin. In fact, the total market capitalization for all cryptocurrencies is slightly above 300 billion, which is less than what JP Morgan Chase is worth; there would seem to be a ceiling above it still.
2.) Cryptocurrency is all about Bitcoins
While Bitcoin has emerged as the most widely known form of cryptocurrency, there is so much more to blockchain technology. In fact, there are several hundreds of cryptocurrencies available, and some of them even have the potential to rival Bitcoin. A few of these newer alternative cryptocurrencies include Monero, Ripple, Cardano, Litecoin, NEM, NEO, IOTA, and Ethereum. It’s not just about a name, it’s about a technology, and about the efficiencies that technology offers in all sorts of areas.
3.) It isn’t ‘real’ money
Since cryptocurrency isn’t a tangible form of money which can be physically held, it is understandable that to some people, it doesn’t seem like it’s ‘real.’ The truth couldn’t be further from this myth. Cryptocurrency has become a technology changing how the world deals in money. It is new, but it is not fake. It is the future. Cryptocurrency is quickly adapting to the present financial markets and is being used to resolve a number of issues that crop up in traditional banking. And when you take a look at the strong community and iron-clad codes that back it up, it doesn’t seem unreal anymore.
4.) Cryptocurrency is primarily associated with criminals
Because the creators of Bitcoin designed trades to be completely anonymous, it was widely believed that cryptocurrency was closely linked with illegal transactions, criminal activity, and the dark web. The freedom of a borderless currency can certainly be abused. However, security isn’t only for criminals. The applications of a completely secure, completely private currency can be enjoyed by anyone.
The myths we’re talking about here are only the tip of quite a large iceberg. There are a number of other misconceptions floating around that seem generally easy to believe. However, when you lift the veil and look behind the scenes, you’ll begin to see that cryptocurrency has some real potential that, when tapped into, can revolutionize the way we perceive and deal in money.