This article is about common myths regarding cryptocurrencies and the blockchain & why these myths are not true.
Myth: Cryptocurrency is mainly used for criminal transactions and other illegal activities
Debunk: Cryptocurrencies were created so that decentralized organizations such as banks and governments don’t have ownership of our money, hence returning the ownership to. Meaning More financial power for the individual. Just like with cash, someone can choose to spend their money on legal or illegal things. But since every transaction is stored on the blockchain it isn’t very smart to use cryptocurrencies for illegal purchases, since the transactions are stored in the ledger. The ledger refers to a record keeping system, all user information is stored anonymously but transactions between network participants are visible. This is where mining takes place, many computers solve mathematical problems to ensure the transactions are correct and there are no scams taking place.
Myth: Governments will soon ban cryptocurrencies.
Debunk: Yes, it is true that certain countries have imposed a ban but because cryptocurrencies are used through the internet, it would be nearly impossible to ban the internet. The coders and engineers that have created the blockchain have already found a way around government centralization and are clever enough to find a new way if it is necessary. People want individual ownership and less government control and as it is finances the government does get their tax cut, what more could they want?
Myth: Cryptocurrencies are too complicated for the common person.
Debunk: With research being widely accessible through the internet anyone can do their research. Secure trading exchanges? profiles such as on coinbase and coin market cap are easy to use and understand as well as secure. Just make sure you are sending the same currency to the address associated with it (bitcoin to bitcoin address). Same with the stock market, people should always do their research. And if you’re still unsure after researching and are scared of shit coins, check out defytrends.tech for educational information and data analysis to make the best decision based on your interests.
Myths: Cryptocurrencies aren’t secure.
Debunk: The blockchain technology is highly secure. The mining process, where computers solve mathematical problems to prove the previous transactions ensures that there is proof of secure purchase. With every transaction being encrypted into the ledger with blocks and chains makes the network very secure. Now what someone has to be careful about is using unsecure wallets and engaging in shitcoins. There is a possibility of scams happening but if you do your research and stick to the wallets and coins where there is a lot of information available transactions should be safe.
Myth: Cryptocurrencies are a scam.
Debunk: Of course there is always a possibility of a scam, just like there is with other investments. That is why research is so important. If you go to coin market cap or coinbase those websites should have usable information for your research. If you can’t find any articles or information about a coin that has been introduced to you, it’s probably a scam. If you are really scared, having a cryptocurrency educational program or using research tools such as the ones provided by Defy Trends, you can feel more confident in your investment strategies.
Written by Rosalie Mosner
DeFy Trends is a women-founded, all-in-one, intuitive, real-time analytics application and chrome extension that uses on-chain analysis and high tech data science algorithms to provide data insights based on DeFi fundamentals and sentiment. By scraping the web and social media for cryptocurrency sentiment analysis, incorporating real-time market data, qualitative data, and forecasting AI to bring retail and institutional investors state of the art insights on the rapidly growing crypto-decentralized finance markets.
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