Common Myths About Cryptocurrency 

 

Cryptocurrency has been a part of the world for about 15 years now and in that time, a lot has happened that has shaped it into what it is, which is a fiat alternative. These years are a decent amount of time to not only define something but also have certain ideas concerning it be misunderstandings and misconceptions. Cryptocurrency has its fair share of these and they must be dispelled so you know what to expect if you decide that the general space interests you.

 

Doing this requires you to understand the basics of what crypto is, which then leads us to discuss what it isn't. Only then will the myths be debunked and understanding starts to creep in.

 

Contents:

- How it is transforming finance

- Misconceptions: setting the record straight

- Its anonymity

- It's being valueless

- It can't be used in the real world

- It's a fiat replacement

- Why these myths exist

- Final thoughts

How it is transforming finance

Cryptocurrency is a digital currency that one can use as physical money, except without having an intermediary like a bank or other financial institutions. This decentralized mode of operation instead depends on the blockchain, which is a ledger that records and verifies all transactions.

 

Cryptocurrency has existed since Bitcoin was founded in 2009 and has since become a huge part of culture today. This is because as an alternative to fiat, it provides the following benefits:

• Faster transactions due to a lack of centralization
• The lack of high transaction fees due to a lack of centralization
• A great deal of security due to the nature of blockchain, which makes hacking nearly impossible
• Better privacy, due to the system being so that you have an identifier that doesn't lead to your personal information

 

The above benefits as well as the potential many see in it are such that crypto isn't just a concept. You can use it today as a mix of crypto with AI for smarter trading; and with many major players in the world of business incorporating it into their operations, you can only benefit from it.

 

Misconceptions: setting the record straight

The above shows us what crypto is. Now, let's look at what it isn't by debunking some common myths about it, and these include:

 

Its anonymity

A word often associated with cryptocurrency is anonymity, which is a security measure that keeps you hidden during transactions. Well, that's not entirely true, as while your details are hidden, your transactions are still traceable via pseudonyms.

 

It's being valueless

Because cryptocurrency is by its very nature digital, there's this idea that it has no value because it isn't backed by a commodity like gold or a fiat currency. This, however, isn't the case, as value depends on how people view something.

 

The more in demand something is, the more valuable it is, with the opposite being true for the opposite. So, while it is true that crypto has no intrinsic value, it is valued by millions of people who value the problems it seeks to solve, and thus gravitate towards it.

 

It can't be used in the real world

The previous point bleeds into this one because many assume that uses of crypto in the real world either don't exist or are tied to illegal activity. While this can certainly be the case and was in the earlier days of crypto, it isn't so much anymore. You can use it, for example, for crypto trading based on real-time data and accurate pricing information. With a wide coverage of various cryptocurrencies and access to historical data, the data API is easy to integrate for various use cases such as trading, investment strategies, portfolio management, etc.

 

That's because space has evolved quite a bit in 15 years. It only means that it's better regulated, while the ability to track illicit activities and report them has increased.

 

It's a fiat replacement

There's this idea that just because crypto exists to counter some of the things that people using fiat currencies are dissatisfied with, it is indeed looking to replace it. While theoretically, that is possible, especially if people gravitate towards it instead of its alternative, that's either not going to happen soon or at all.

 

This is because as it stands, governments aren't going to dispose of it so easily, as it is a well-established system. Losing centralization, which has evolved to handle situations like inflation, may have adverse effects, as decentralization is new, and doesn't have those measures at the moment.

 

Why these myths exist

The above are just a few among the many myths surrounding crypto that people tend to believe. This makes one wonder why this is the case, and in reality, the fact that it's relatively new is the main contributor that has led to the following:

- General lack of education concerning it

- A lack of good information pushes people who don't understand it

- A general distrust of the digital world

Final thoughts

As cryptocurrency grows into a larger space as the years go on and people increasingly see potential in it, a lot will be said about it. Because of this, it's important to sift through all the talking to find out what's true, and what isn't so your judgment of it is based on facts.

 

The above myths are among many you'll see out there, and having them debunked helps you especially if you're considering entering the crypto space. As such, it's important to have a good education about crypto and quality tools for crypto real-time data and trading. And all things and knowledge related to crypto will cease all that misinformation and misinterpretations.

You can get your Real-Time and Historical Cryptocurrency Data with a free Crypto Data API key.

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