7 Bitcoin Myths and Facts everyone should know before an investment
Today, investing in cryptocurrency has become the hottest financing option. Once the price drops, many people start showing interest in investing in it. You may get the necessary information on cryptocurrency via Google, but you should not trust on such unreliable sources of information. Moreover, many perceive this industry as a scam and medium of hefty money loss. But in reality, you can earn a huge profit from crypto if you invest in a smart way.
Are you feeling overwhelmed? Don’t worry. As there are a plethora of misconceptions surrounding everywhere,acknowledging the facts on Cryptocurrency and Bitcoin is necessary to become an inevitable part of the high-performing asset of the world. Let’s get started with the actual findings to steer out your confusion.
Myth: Cryptocurrency supports dubious activities
Fact:As every cryptocurrency transaction remains in the public ledger called Blockchain, the details can’t be used for anonymous purposes. With time, the global acceptance and increased regulation of various cryptocurrencies, including Bitcoin, Ethereum, XRP, and others, have become the prime reason for eliminating illegal activities. It is true that cryptocurrencies are not controlled or issued by any bank or government, but it is widely accepted by many online shops, and there are many large investors around the world who are investing their hard-earned money in this market. So, it is a myth that crypto is an illegal trade.
Myth: Cryptocurrency is just a gimmick and can’t last long
Fact: At the emergence of wireless networking, everyone felt dubious about its longevity. A similar trend goes for Smartphone and other technological inventions. But, if you look at today’s trend, everything is seamlessly linked up to both smartphone and wireless connections to make everyone virtually connected. Looking at the last year’s trend,Cryptocurrency has seen a nearly 195% increase in its value. Thus, it will be surely get integrated into everyone’s life soon.
Myth: Bitcoin can’t be used for making payments
Fact: To help you understand, many global online companies, including Expedia, Microsoft, Overstock.com, Shopify Stores, and others start accepting Bitcoins as payment mediums to ease out the transactions. Various countries have already installed Bitcoin ATMs machines to help the users to buy crypto with fiat currency. In today’s market, using a reliable trading app like Circle Crypto is necessary because it is a trusted platform that offers various features.
Myth: Cryptocurrency trading is a fraud chain scheme
Fact:Not exactly! If you stay alert and research well about the company you will deal with, nothing can impact your data security. People consider this investment as Ponzi one due to the non-existence of centralized authority controlling its production or distribution. As every Bitcoin trading is registered under the Blockchain system, information can be found virtually. So, you can own this currency without any third-party custodian.
Myth: Cryptocurrency users keep their transactions undisclosed
Fact: Cryptocurrency users somewhat maintain anonymity while engaging in a transaction. This is partially true. But, in reality, they need to showcase their data while using the exchange services. So, you can rest assured of the future tracing of your trading. Carrying out Bitcoin transactions is within reach of the law.
Myth: Bitcoin and Blockchain are the same
Fact: Bitcoin is one of the 4,000 cryptocurrencies transacted between two parties to purchase physical or virtual products and services. On the other hand, Blockchain is the secured form of digital ledger that records all real-time transactions. So blockchain is a technology that can be used by other sectors, and crypto is a currency based on this technology only.
Myth: The energy consumption in Bitcoin trading is quite high
Fact: In banks and financial institutions, the energy consumed for daily business operations is quite high compared to Bitcoin networking. From back office operation, staff handling, and security services to transportation – the traditional institutions consume a significantly high amount of energy to deliver client services. The aggregate energy consumption of Bitcoin transactions remains within a tiny proportion of the total energy allocation.
The wrong facts circulating everywhere make people enigmatic about investing in the highly profitable Cryptocurrency. Moreover, financial magazines often showcase misquoted statements for gaining publicity. More countries have decided to adopt cryptocurrencies in various forms like legal payment systems, virtual assets, global transfer, art selling, and others. This digital currency has the immense potentiality to become an inevitable part of wealth management.Stop believing the misinformation, and empower yourself with the decentralized transactions.
