Believed Crypto Myths Officially Debunked
There is no question that the world of cryptocurrencies is complicated, by extension sometimes makes the scene confusing. The situation isn’t helped by the endless legions of so-called experts, all throwing around half-truths and blatant misinformation. Hence, it isn’t surprising that cryptos are surrounded by many myths and misconceptions.
Let’s take a closer look at some of the most common misconceptions and break down the facts.
Cryptocurrencies Don’t Have Real Money Value
Saying that cryptos don’t have real money value is a misunderstanding. In essence, any product bought and sold has a value based on what people are willing to pay. A new TV is more expensive than an old TV, though both products essentially serve the same purpose; showing images. Yet, someone is willing to pay more for a newer TV, simply because they want a better version of something they already have. Hence demand, supply, and a willingness to pay a certain amount determine a TV’s value.
As far as currencies are concerned the equation is similar. Supply, demand, and willingness to pay a certain amount determine how much crypto is worth. Cryptos like Bitcoin are well established now, with 10 of million transactions daily. As long as traders want Bitcoin it has real money value.
Cryptos Are Only For Criminals
There are many rumors that cryptos are exclusively for criminals, but this is an extremely narrow view of an enormous, thriving market. This is to say; criminals also use fiat currency, but no one is accusing fiat currency of only being for criminal activity.
Yes, everyone knows how to buy crypto, given that it is such a streamlined process. Hence some criminal activity has involved crypto. But there is also an enormous, legitimate market with millions of investors and businesses.
Cryptos Are Easily Hacked
There has been some crypto-focused cybercrime, which is unfortunate. But, as far as blockchain itself is concerned, the system has proven to be impenetrable. It is rather some crypto trading platforms that have shown security weaknesses. As with all online trading platforms, as weaknesses have been exposed, steps have been taken to plug the holes.
There Is Only A Single Blockchain
There are many blockchains that exist across multiple different cryptos, all catering to the various flexible markets. Not all blockchains are exactly the same, but all serve the same basic purpose; keeping track of, and verifying crypto transactions.
Blockchains Exist In The Cloud
Blockchains are not like other commonly used server-based systems. A bank, for example, has a single server that handles all transactions involving that particular bank. Blockchains use multiple points of communication across thousands of systems.
Each point of the Blockchain keeps track of all transactions, comparing the ledger to the next link in the chain. If a difference is determined the blocks gradually update, verifying that the changes are legitimate. It is not so much that the chain operates on a cloud, but rather a broad, flexible, constantly updating chain system.