The phenomenon known as cryptocurrency has attracted a lot of attention. Plenty of people are looking for up-to-date information regarding this new form of money. Unfortunately, this leads to a lot of misconceptions surrounding Bitcoin and altcoins. Let’s dispel a few of the more common ones.
4. Governments can Control Cryptocurrency
Even though some governments may want people to think they control and regulate cryptocurrencies, that is far from the case, as cryptocurrency cannot be regulated or controlled by default. Companies providing solutions related to this new form of money, on the other hand, are subject to existing guidelines which apply to other financial service providers as well. The flow of money in the cryptocurrency world is not controlled by any central authority, nor will it ever be.
3. I need to buy a Whole Coin
Even though it makes perfect sense for most people to buy one full Bitcoin, Litecoin, Ethereum, Monero, and whatnot, it is not necessary. For those who want to invest a very marginal amount of money into cryptocurrency, every coin can be divided using the eight digits after the decimal. This means one can buy a very, very tiny fraction of one coin and still be considered an active cryptocurrency investor.
Buying 0.001 XRP, of course, will not get you a lot of profit. This principle is valuable to explore when dealing with low-supply coins, whereas currencies with billions of coins or tokens in circulation usually warrant the purchase of one full coin or token due to their much lower price.
2. Bitcoin is for Criminals
It has become evident that criminals all over the world have taken a strong liking to Bitcoin and other cryptocurrencies. In most cases, the reason for doing so is completely wrong, as Bitcoin is not anonymous, nor are most of the other currencies. There are some exceptions in this regard, as a few cryptocurrencies do focus on anonymity and privacy. In the case of Bitcoin, those traits are notoriously absent, and they will be for quite some time.
Even with anonymity and privacy, criminals are not the ones to benefit from such features the most. Everyone on this planet who enjoys having a say over their own money should cherish financial privacy and anonymity first and foremost. It is not about having something to hide, but rather about being in control of your money and it not being anyone else’s business. Criminals just want financial gain, and they will pursue any avenue possible – including cryptocurrencies, unfortunately.
1. The Prices are too High / Bubble Markets
The current global interest in cryptocurrency should not be underestimated whatsoever. Even though the prices rose quite a lot last year – and dropped this year – it is evident there is still a lot of market momentum left in the tank. Any comments regarding how cryptocurrency is in a bubble can easily be ignored as well, as that is factually incorrect. There are financial bubbles to be wary of, but they do not apply to cryptocurrencies as of right now.