The topic of cryptocurrency and myths has been pretty popular lately.
With bitcoin soaring its price, digital currencies have become a more acceptable name in the market.
We see these coins becoming the new talk of the town, and we see many people getting attracted to the same.
There are too many good things and even downsides to bitcoin and several other virtual currencies.
However, if you intend to go a long way, you will encounter several myths about digital coins.
In this post, we will be debunking the top 10 myths about the same.
If you intend to check things in detail, visiting this bitcoinx website can help you know more about it.
Let’s check the same as under:
Cryptocurrency and Myths: Crypto Is Free From Tax
Several digital coins remain from the clutches of banks and governments, making them free from taxes.
However, this is not true everywhere as more and more nations have the idea of allowing them to come up with tax slabs attached to it.
Thus saying that cryptocurrencies are free from tax is a myth.
However, governments of different nations are working in this direction.
Crypto Does Not Carry Any Single Real Money Value
Perhaps this remains one of the biggest myths and misconceptions of digital currencies as it is not backed with any asset.
However, many people who are seen trading in digital currencies feel that they have something to offer.
As a result, we see them developing their supporting systems, as seen in 2009.
If you understand the value of it, you can check things right.
Digital Coins Are Illegal
We see a few nations like Russia, Bolivia, and a few EU countries banning the same.
However, a few nations have made these coins legal tender in their lands.
In addition, several banks and even nations are planning to collaborate with bitcoin and other coins, while others are finding a way to adjust with them.
Cryptocurrency and Myths: Crypto Is Often Used for Illegal and Criminal Activities
Several incidents like SR Raid in 2013 claim the scam of million USD loss in BTC for crimes like drugs and other things.
However, we now have some nations proposing the KYC option for users who are into digital coins.
The move has nullified illegal people and criminals on the digital currency bandwagon, making this a big myth.
Cryptocurrency and Myths: Digital Coins Are Simple to Hack
With the help of several platforms, you can trade in digital coins like you get the option for trade in other brick and mortar-based products.
However, hacking can remain anywhere and everywhere that remains digital, including internet banking.
Thus to brand digital coins as simple to hack is not fair.
Adding up the security on your coins-based wallets can help you secure things the best.
Only One Massive Size Blockchain in the Bitcoin Space
It is rubbish as we see many more blocks with the technology.
Blockchain is an important technology that drives digital coins, and it is available in all the possible places where digital coins are present.
It is technically not a problem.
This kind of blockchain often backs bitcoin while others include ETH and Ripple.
Blockchain Remains a Cloud-Based Database
Remember one thing; blockchain is a technology that works as a ledger.
It is meant to expedite the transactions and maintain the same record.
It is a complete ledger thing, and it supports several digital coins that give secured kinds of transactions without any flaw or issue.
You cannot store any file in blockchain; it is a set of codes that must remain in the right place.
Digital Coins Are Not a Payment Option
Again, a myth. It was not acceptable when it first came, but it proved one option to pay people with time.
Remember the two pizzas at 10K of BTCs in 2011.
We have big companies like Tesla, Dell, Microsoft, and others accepting payments in bitcoin.
It means it is not allowed to offer the payment option.
Digital Currencies-Based Transactions Remain Anonymous
Blockchain remains a public account book or ledger, and it is meant to keep a record of the transactions.
These are seen with anonymity to some extent, but at extreme stages, one can find the transactions occurring between two parties.
Thus, to say it is completely untraceable is a myth.
No Business Use
Many people feel especially from the central banks and governments who claim that bitcoin or any other coin has no business use.
However, this is false as many can transact and even trade with private digital coins.
Petr is a serial tech entrepreneur and the CEO of Apro Software, a machine learning company. Whenever he’s not blogging about technology for itechgyan.com or softwarebattle.com, Petr enjoys playing sports and going to the movies. He’s also deeply interested in mediation, Buddhism and biohacking.