One thing history tells us is that anything which gains global popularity is bound to have multiple opinions about it. Such is the case with digital currencies, which came into being after the creation of bitcoin back in 2009. Since it was a new idea back then, while some people accepted it and embraced the risk, others were either hesitant, or did not have positive views regarding crypto. This led to several different opinions to surface over the last decade, some of which were true, whilst others were straight rumors and myths.
It should be known that many different myths about crypto emerged during the last ten years, and most of them are quite recent. It is worth noticing that while some of the people have faith in crypto and have thus invested in it, many people still do not trust it and are quite hesitant in investing in crypto. This hesitation is mainly due to the fact that some people believe that crypto is a currency for the illegal stuff.
Which of these people do you think are you? It is true though, that due to excessive misinformation spread in the markets all around the world, people are still not completely confident about this virtual investment tool. With the passage of time, as technology is improving and sources of information are increasing, this level of misinformation is reducing hence decreasing the intensity of the myths about crypto. One major factor which contributes to these myths and the spread of misinformation is the fact that there are still a lot of people all around the world, who either do not know properly about crypto and how it works or are completely unaware about it.
If you are interested in yuan pay group and crypto trading, and want to learn more to enhance your knowledge and skills.
We have written this article as an attempt to improve the basic knowledge of the readers about virtual currencies and how they work. Following is a list of one of the most common myths about crypto and how we believe that it is not true. So, without any further ado, let’s discuss them:
NOT TRUE! It should be known that it is not possible to actually forge a digital currency. Every crypto runs on its own codes and algorithms, which are unique to the identity and system of that crypto, making these digital currencies unforgeable. them to not be counterfeited. Because of the blockchain technology used by cryptocurrencies it is not possible to record the transactions that a person performs, nor the order in which they do so. This is one of the main pros of crypto, that due to their ability of not being forged, the transactions can’t be duplicated or no fake virtual currency can therefore be created. The crypto system will instantly detect if there is any fake transaction or crypto and instantly wipe it out.
NOT TRUE! Due to one of its key features i.e., its decentralization, the crypto cannot be controlled or banned by any authority or institution. How though? It should be known that the virtual ledger, blockchain, upon which the crypto runs us basically decentralized, i.e., it cannot be governed or regulated by any authoritative body or institution. Therefore, these governments and regulatory authorities who do have all the control over fiat, have no such control over the crypto network. This is one of the main differences between cryptocurrency and the traditional fiat currency.
NOT TRUE! One of the most prominent aspects of crypto is the digital ledger known as the blockchain, upon which transactions occur and the transaction info such as the date and time etcetera are stored. Other than the verification and validation of the transaction, this ledger also stores transaction data. Therefore, this is a myth that transactions of crypto are untraceable and you can totally get away with them. It is actually the opposite as the blockchain stores all necessary details of the transactions occurring on it.
NOT TRUE! This myth is basically linked to the process of generation of crypto, which is known as mining. For those who are thinking of the coal miners or the traditional miners when we talk about crypto mining, well it does not fit in this case. In fact, there is a process called crypto-mining, during which new blocks of crypto are created on the virtual ledger of crypto, known as the block chain. Cryptocurrency mining is a process during which the transactions of several different virtual currencies are validated and are then added to the virtual ledger known as the block chain we just discussed above.
It should be known that the mining of crypto is a very complex process and costs a lot to the firms who spend large sums of money to purchase the equipment required to mine the virtual currencies. Additionally, these costly equipment also consume vast amounts of energy in the form of electricity as well. The myth that digital currencies and their mining can be harmful for the environment have actually uprooted from here as these people who began this myth and actually believe in it as well think that the mining of crypto consumes so much energy thus harms the environment.