Myths And Real Facts About Cryptocurrency

Just ten years ago, no one suspected that the investment market would undergo such revolutionary changes. Furthermore, after the announcement of Bitcoin's development, most people were skeptical. This is understandable because a digital currency is something new and unexplored looking completely unreliable to invest money in.

Several years have passed and new types of digital currency have emerged. But the attention of the public, experts, and investors is still riveted on Bitcoin. New myths and conjectures about cryptocurrencies, their creators, and their prospects are regularly published. You can read more about what cryptocurrency is at Wikipedia. Here you will find reliable information without legends and unconfirmed stories.

What Cryptocurrency Is

Cryptocurrency is a digital asset that is not supported and maintained by a country's Central Bank. This type of monetary unit is decentralized while being securely protected by cryptographic technology. Participants in transactions involving cryptocurrencies are exposed to less risk. As a matter of fact, all assets are digitally protected, they can not be influenced from the outside. 

Today, the most expensive currency is BTC. At the beginning of the way, it was worth less than a dollar, but today its rate has soared to $ 20,000 and continues to show positive growth. It is worth noting that so far there are significant fluctuations in the value of bitcoin in both directions but in the long term, it is a profitable investment.

Cryptocurrency Types

In addition to Bitcoin, there are other currencies to which experts predict an increase in the rate

Already many wealthy financiers are seriously considering them for capital investment.

Myths and Denials about Cryptocurrency

Not surprisingly, there are many legends and fiction about digital currencies. Let's look at five of the most common stories.

Bitcoin Creators

Officially this cryptocurrency was created by Satoshi Nakamoto. No one knows who this is and whether the person with this name even exists, or it is a group of people with a nickname. However, there are already registered cases of extraordinary statements from different people who are trying to prove their direct involvement in the development. 

Even famous people are involved in such statements, for example, Craig Wright, who initiated the BSV fork. There were those who put forward absolutely fantastic versions, up to the fact that crypto was invented by aliens.

Cryptocurrency is a Bubble

This is the opinion of skeptics who are still unsure of the stability of the currency. The justification for such a judgment is the fact that it is not backed by banking establishments and is not backed by anything, unlike fiat.

However, considering that Bitcoin has been successfully existing for more than 10 years and grew by tens of thousands of times from its initial value, we can safely say that it is the money of the future and is much more reliable than any country's currency.

Another proof of the currency's reliability is its presence in the gambling business. Well-known sites, such as online casinos that accept Bitcoin, allow deposits in bitcoin and a number of other currencies. It is unlikely that a large business would risk millions for the sake of the phantom reliability of crypto.

Digital Currency is Used Only for Fraudulent Purposes

This opinion has arisen in connection with blockchain technology, which ensures the confidentiality of transactions. Some people believe it can be used to launder money and buy illicit goods, and funds. 

Such a judgment is confidently refuted by a statistic derived by Chainalysis, a reputable blockchain analysis company. You can learn more about it on its official website at https://www.chainalysis.com/. So, according to the statistics, only 0.15% of all transactions related to cryptocurrency transfers were associated with the fraud.

Moreover, if serious criminal actions with digital money are suspected, investigators can request transaction data as part of the investigation. And since all information is stored in blocks and cannot be edited, tracing the chain of transfers is quite easy.

Only Rich Investors Buy Crypto

The value of BTC today is quite high, so many people think that it is unreal to buy it for an ordinary person. In this case, few people take into account that one bitcoin unit is a million satoshi (like pennies). 

You don't have to buy a whole bitcoin, you can become the owner of a bitcoin unit. In this case, the investment will work the same way as in any other purchase - the higher the currency rate, the greater the growth of invested capital.

Digital Money Can Easily Be Stolen or Hacked

This is true but only in part. History is known for cases when hackers attacked wallets and even entire exchanges. As a result, cryptocurrency owners lost their capital. However, this can happen to any market because no one is 100% insured against losses.

However, in most cases, crypto owners lose crypto due to their own carelessness, negligence, and recklessness. For example, they come up with too easy a password, give it to third parties, or write it down in a conspicuous place. These are the basic means of protecting personal information, which should be adhered to by the owner himself.

Conclusion

Cryptocurrency has not yet been fully explored as a means of investing in the long term. At the same time, many reputable investors are already investing a lot of money in the purchase of different digital units. This is a kind of security, which is so much talked about. Reputable financiers with their reputations provide a kind of guarantee that this currency has prospects.