DEMYSTIFYING CERTAIN MISCONCEPTIONS RELATED TO BITCOIN

Bitcoin has been serving the headlines since it has been founded and called electronic cash. Cryptocurrency has come into the digital world after the crisis of 2009. Bitcoin is the first such virtual currency that is said to have existed in the digital market. After bitcoin, there are n numbers of altcoins that are still competing in the digital market. Any digital currency that came after bitcoin is called an alternative coin because they are an alternative to the investors who cannot afford an investment in Bitcoin.

Since cryptocurrency has come into usage there is a certain misconception that people still feel, and are sometimes scared to invest in the cryptocurrency. This is due to the underlying misconception that media or sometimes people tend to spread. The topic is going to reveal these unknown myths that make people scared to invest in cryptocurrency. Cryptocurrency has been celebrating successful existence for more than a decade now but still, people are misinformed about digital currencies.

THAT CRYPTOCURRENCY IS FLAWED AND DO NOT POSSESS ANY VALUE

This misconception that it does not possess any value is derived because of the inability of the tax authorities to decide the levying of the tax. But if we see the value of bitcoin in 2009 and at present, it is enormous be it price, value, market cap, or its investors. As we know mining is based on the POW algorithm which means that its electricity consumption is also high resulting in hiking Bitcoin’s value too. Bitcoin halving is another reason for the rise in its value in the future. If you want more information regarding this, you can go through the crypto crash fortune to better understand it.

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THAT THEY FAIL TO PROVIDE PROTECTION AND SECURITY TO OUR MONEY AND TRANSACTIONS

This would be another lame myth to spread. As we know, cryptocurrency uses cryptographic protection which makes it impossible to hack the transaction. It includes ciphertext for communication purposes which a layman cannot understand. Each time a new block is processed its hash varies as per the changed information in each block. That is how these processes make cryptocurrency a fully protected currency.

THAT THEY HAVE BAD ENVIRONMENTAL IMPACTS

As it is known that Bitcoin’s creation has been capped at 21 million which means that after its limit is fulfilled no further mining can be done which will automatically result in the reduction of the electricity consumption.

THAT THEY SEEM MORE LIKE A FRAUD OR SCAM

If you thoroughly check upon the new currency’s origin and keep patience as to the working of the coin during its initial coin offering time or when you just start with investment. You won’t probably attract a scam. It is all in your hand to stay immune from such scams.

THAT THEY ARE INVOLVED IN ILLEGITIMATE ACTIVITIES

Cryptocurrency enables a public distributed ledger which provides full transparency in the transaction. You can know where the money is being transferred and to what purpose and what time. All these features make it trustworthy and make you keep a check on illegal activities.

CONCLUSION

Cryptocurrencies have now existed for more than a decade but still, people possess and spread some unknown rumor that hinders people from taking a step into the digital world. As we know in the 21st century everything is now turning into digital space. Cryptocurrency is one such mechanism that has been serving the convenience of the public. It did face resistance in its initial days just like the internet did, but now the internet is something we rely on for almost everything. Crypto is also going to be one such thing in the future too. But you only need your brains and patience while investing in crypto and you are good to go. 

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