Top 10 false facts about cryptocurrencies

We have to remember that there are both good as well as bad things in the crypto world. But there are promotions happening everywhere showcasing only the bad things in the crypto world and normal people need more exposure to the good things in the crypto world. When false information is shared, people easily believe that and they generalize that every crypto project is like that and get a general thought that cryptocurrency is a scam.

This article will cover about 10 false facts that are very commonly spread among people about cryptocurrencies.

Comparing crypto with pyramid schemes

This is very funny when people say that we have to invest something and the money grows and we invest further and one fine day the money will grow big and investors would vanish. We have a base security here called decentralization and if we invest in cryptocurrencies that provide that safety, we wouldn't end up in pyramid schemes and it can be a safe investment with decent returns.

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No real-world value for cryptocurrencies

We cannot generalize crypto as a no-value asset. The value of gold was created only when there was a great demand for that and the price of gold was also determined only based on the demand. If we look at the price of Bitcoin, the price is always going up in the last 10 years. This clearly shows that the value is created and it also depends on which cryptocurrency we are talking about.

Crypto is too technical

Not all the crypto stuff is too technical. There are very simple investment opportunity cryptocurrencies where the concepts are very simple and anyone with basic education can understand. In any industry, the technology behind can be too technical but the client-facing front end would always be friendly.

Crypto is used only in illegal activities

It is true that cryptocurrencies are used for illegal activities and it is also hard to track some of the transactions because of the nature of the transactions being anonymous. But the counterargument for this is that statistics say that the highest number of illegal activities happen only with the help of the FIAT currencies. Crypto is just a small part compared to that and mostly it happens only in the country where there is a ban and where there is a regulation.

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Bitcoin is the only real cryptocurrency

This is a very common understanding for anyone. Bitcoin was indeed the first cryptocurrency in the world and it still has a great demand to date. But today we have so many other cryptocurrencies and many real-world projects backed by those cryptocurrencies. Some banks also use cryptocurrencies for their easy overseas transactions.

People can easily speculate cryptocurrency

Yes, it is very easy to speculate cryptocurrency market. Especially the ones that have limited market cap can be easily manipulated. There are also telegram channels that do pump-and-dump activities to speculate the price and value of cryptocurrencies. This is something common in the regular share market as well. There is no wonder that it is happening in the crypto market too. The nature of the market should always be like that where there is both upward movements as well as a downtrend. Flat markets are dangerous.

Crypto is nothing but gambling

It is very common to compare crypto with gambling. It is true that crypto is used by many casinos for gambling stuff too but we cannot generalize it and say that crypto is used only for gambling stuff and nothing else.

It is too late to enter the crypto space

It is never too late to enter anything. As Rattan Tata says, it is never too late to do anything. Some people thought that they were late when the price of Bitcoin reached 500$ per coin and did not invest. Imagine what would have happened if they had invested back then. There is a high possibility that the price might go even further who knows. So it is never too late to give anything a try but only to the limits we can stretch or bend.

Cryptocurrencies are not safe

This is a very common statement too. Just because cryptocurrencies are not regulated by some governments, it doesn't mean that it is not safe. From a technological standpoint, we can easily say that crypto transactions are the safest transaction because it goes through a consensus mechanism and not one single person can manipulate the data. Even our bank balance can go missing tomorrow if there is a system failure or if the bank server goes down. But cryptocurrencies, it has more safety because people run the nodes all over the world and the data is kept safe.

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