Over the past couple of years, digital currencies known as cryptocurrencies have swept the
world by surprise and surpassed everyone's expectation, gaining worldwide popularity. But like
with any new investment opportunity in the currency market, these digital currencies have
prompted a lot of new investors with a lot of questions. Is the hype about to die or is it here to
stay for good? Find out by reading the article below!
Today we bring you the Top 5 Crypto Facts
and Myths you need to know right now!
Myth: Cryptocurrencies like Bitcoin are a bubble and they are about to burst.
Fact: The total market capitalization of Cryptocurrencies today is about $2-Trillion – making it the top performing asset of the decade.
Bitcoin, one of the first and most popular cryptocurrency, has been around since 2010. In the earlier days of crypto, it was viewed by investors and sceptics as nothing more than a financial scam. People were quick to dismiss the topic back then and would deem you something of a hacker or someone who's been scammed. We have come a long way since then. These days cryptocurrencies are regarded as a good financial asset to have, with returns as much as 200% in the last year making it significantly more profitable than other traditional commodities and financial markets.
Myth: Bitcoin, and other cryptocurrencies, are just a ponzi scheme (Financial Scam)
Disclaimer. The author would like to express that this article is intended purely for entertainment and informational purposes only. The views and opinions expressed in this article should not be considered as professional financial, or investment advice. Remember to never invest more that you can afford to lose, and always consider your experience before investing.
What is Crypto?
Chances are that you’ve come across the words “crypto” a dozen times before from your family members, friends and colleagues. You might have heard of the popular coins like Bitcoin, Ethereum, Cardano, and Binance Coin. Maybe you've already knowledgeable with this or you are just starting to venture into it. Nevertheless, you've come to the right place to learn just what cryptocurrency is all about.
In its simplest form, “crypto”, short for cryptocurrency, is a form of digital currency that exists on the internet. Bitcoin is one of the first and most popular digital currencies to date. Transactions made with these currencies are secured with a cryptographic code that is virtually impossible to hack or forge.
Transactions are decentralized – meaning there are no middle men, and trades between coins are made person to person.. Data is stored in a block which is a public and transparent ledger that anyone can view.
This makes crypto a peer to peer open source network that anyone with the internet has access to.
5 Crypto Facts and Myths You need to know
Myth: Cryptocurrencies like Bitcoin are a bubble and they are about to burst.
Fact: The total market capitalization of Cryptocurrencies today is about $2-Trillion – making it the top performing asset of the decade.
Bitcoin, one of the first and most popular cryptocurrency, has been around since 2010. In the earlier days of crypto, it was viewed by investors and sceptics as nothing more than a financial scam. People were quick to dismiss the topic back then and would deem you something of a hacker or someone who's been scammed. We have come a long way since then. These days cryptocurrencies are regarded as a good financial asset to have, with returns as much as 200% in the last year making it significantly more profitable than other traditional commodities and financial markets.
Myth: Bitcoin, and other cryptocurrencies, are just a ponzi scheme (Financial Scam)
Fact: Crypto cannot be controlled by a single entity / institution.
Cryptocurrencies like Bitcoin cannot be owned by one single regulatory body or organization therefore it does not apply to the principles of being a ‘Ponzi Scheme’. A Ponzi Scheme is usually created by an investment firm that's fraudulent. Bitcoin however, can be produced by anyone who is in the blockchain and therefore he/she has complete control to buy and sell the crypto without the need for any centralized body, or authority.
Myth: Crypto is used by criminals for illicit activities.
Fact: Illicit activities are more conducted using Fiat currencies.
While it may be true that Bitcoins aspects of anonymity and decentralized functions may have enticed illegal online activities, the same can be said with any other fiat currency. It's not exclusive to crypto alone. It's worth noting that while some of these transactions may have been illegal, the cryptocurrency is not. Transactions are also made with a public ledger where anyone can see your address and holdings so it's not 100% anonymous.
Cryptocurrencies like Bitcoin cannot be owned by one single regulatory body or organization therefore it does not apply to the principles of being a ‘Ponzi Scheme’. A Ponzi Scheme is usually created by an investment firm that's fraudulent. Bitcoin however, can be produced by anyone who is in the blockchain and therefore he/she has complete control to buy and sell the crypto without the need for any centralized body, or authority.
Myth: Crypto is used by criminals for illicit activities.
Fact: Illicit activities are more conducted using Fiat currencies.
While it may be true that Bitcoins aspects of anonymity and decentralized functions may have enticed illegal online activities, the same can be said with any other fiat currency. It's not exclusive to crypto alone. It's worth noting that while some of these transactions may have been illegal, the cryptocurrency is not. Transactions are also made with a public ledger where anyone can see your address and holdings so it's not 100% anonymous.
And although the recent
bitcoin network revealed that there was indeed a time where activity has been
concentrated in black markets, today that number has since significantly
dropped. Far more illegal and illicit activities in the dark web have been
proven to be made with fiat currencies instead of using crypto for payment.
It’s wise to check out messaging boards such as the forum for Empire 27 so you can be informed of any scams and illegal
activities.
Myth: Crypto isn't real and has no intrinsic value.
Fact: Other fiat currencies are backed by commodities as well.
Many would argue that cryptocurrencies dont have value because they aren't backed by commodities like gold, or silver. But the same can be said with fiat currencies like the dollar. The value comes from the simple law of demand and supply that is created by the willingness of the people to participate in the cryptocurrency market.
Myth: Crypto isn't real and has no intrinsic value.
Fact: Other fiat currencies are backed by commodities as well.
Many would argue that cryptocurrencies dont have value because they aren't backed by commodities like gold, or silver. But the same can be said with fiat currencies like the dollar. The value comes from the simple law of demand and supply that is created by the willingness of the people to participate in the cryptocurrency market.
Additionally, if you put in the principle of scarcity,
then its value may fluctuate overtime. Just like Bitcoin whose maximum supply
is limited to producing only 21 Million Bitcoins.
Myth: Crypto isn't safe for the environment
Fact: Crypto is becoming more sustainable.
Because digital currencies require a lot of computer hardware and computational power, there is some cause for concern that transactions have a big impact on the environment. Although Mining tends to have high power usage, miners are actually incentivized by looking for places where electricity is cheaper and more sustainable. Otherwise mining would not be profitable.
Myth: Crypto isn't safe for the environment
Fact: Crypto is becoming more sustainable.
Because digital currencies require a lot of computer hardware and computational power, there is some cause for concern that transactions have a big impact on the environment. Although Mining tends to have high power usage, miners are actually incentivized by looking for places where electricity is cheaper and more sustainable. Otherwise mining would not be profitable.
Another crypto
project to note is Ethereum where they are transitioning into a more
sustainable business model whereas their Eth 2.0 will have dramatically reduced
its consumption for power and thus reduce its overall environmental impact.
Many believe that this transition and development, pushes the crypto market
forward into a more sustainable asset in our current digital age. Thus, many
other cryptocurrencies will adapt to this same blockchain technology.
As cryptocurrencies become more popular and useful in our day to day lives, we can almost start to see that indeed, crypto is here to stay. But more importantly, now that you know your crypto facts, you can use it against any skeptic out there in the next debate that you find yourself in.
Conclusion
As cryptocurrencies become more popular and useful in our day to day lives, we can almost start to see that indeed, crypto is here to stay. But more importantly, now that you know your crypto facts, you can use it against any skeptic out there in the next debate that you find yourself in.
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Disclaimer. The author would like to express that this article is intended purely for entertainment and informational purposes only. The views and opinions expressed in this article should not be considered as professional financial, or investment advice. Remember to never invest more that you can afford to lose, and always consider your experience before investing.
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