Top Myths Around Cryptos – Busting the Bubble for Good

You may have heard about the hype around cryptocurrencies, but there’s a lot of mystery surrounding them. There’s plenty of misinformation out there, some intentional and some not. We know this because we have been in crypto ourselves for over 10 years now and have experienced first-hand the myths that got promoted by the mainstream media outlets.

We decided to take a look at those myths and give you our take on why they are false or if they contain any truth at all.

The Myth of a Crypto Bubble

The word “bubble” gets thrown around a lot these days in the context of cryptocurrencies, but it isn’t an accurate description of what’s happening.

The truth is that crypto-assets are an entirely new asset class and represent a new way to invest. If you think about it, there has never been anything quite like them before: they were born out of the internet age, so they’re inherently digital; they exist entirely on the blockchain.

It means their value isn’t tied to any one country or monetary system. Their supply is limited (there will only ever be 21 million Bitcoins), which means there can never be inflationary effects like those seen with traditional fiat currencies such as dollars or euros.

The Myth About Decentralized Security

The myth that cryptos are a threat to banks, governments and the economy has got busted. It’s time to stop spreading this false narrative.

Cryptocurrencies are not a threat to banks because they offer nothing new in terms of financial services that banks can’t already provide. Banks have always held our money, lent us money, and made payments for us.

Cryptocurrencies only exist as digital records on a ledger somewhere. They don’t possess any intrinsic value like gold or cash does (more on this later). They’re just another form of currency which means if someone doesn’t like them, then they can simply use something else instead – say PayPal or Apple Pay for example!

Sure bitcoin transactions can get traced through public ledgers but this isn’t necessarily true for all cryptocurrencies (read: Monero). This makes it even harder for law enforcement agencies to crack down on illicit activities related to crypto trading platforms operating outside their jurisdiction.

The cryptos are traded on the cryptocurrency markets with the help of decentralized security. Everyone can have exposure to generating cryptocurrency value with the help of blockchain technology. The appreciating cryptocurrency prices are giving confidence to every participant in the system.

The Myth About the Anonymity of Crypto Users

Sometimes, you hear a story about someone trying to do one of these things. Maybe you read about someone who made a fortune from crypto trading and then bought a fancy car with their newfound wealth. Maybe you’re aware that there are some people using cryptos for all sorts of nefarious enterprises, like money laundering or fraud, or evading taxes.

Though, it isn’t true that the anonymity of cryptocurrencies makes them an ideal way to evade law enforcement. It’s just the opposite. The technology behind them means they’re easier than ever to trace back to their source. While this doesn’t mean that all transactions are necessarily traceable (more on this later). There are still some important takeaways we need to keep in mind as we continue learning more about how this incredible technology works!

The Myth That Cryptos Are an Easy Way to Get Rich

This is a big one. You don’t have to be an expert on cryptos or blockchain technology to know that there are a lot of people out there who think that cryptos are an easy way to get rich quickly.

This couldn’t get further from the truth! Cryptos are not a get-rich scheme. But rather a long-term investment like any other traditional asset class (like stocks or bonds).

The market behavior in crypto assets has got compared to that of gold. As they’re both considered safe havens against inflation and as such tend to perform well during periods of economic uncertainty.

The same goes for crypto assets. Great speculative gains can happen when prices run up quickly due to heightened speculation. But these gains usually come at the expense of poor performance during periods when price fluctuations are more pronounced than usual (which we’ve seen recently).

The Myth That Cryptocurrencies Threaten Modern Banking

The fallacy that cryptocurrencies threaten modern banking is a major misconception. While it is true that cryptocurrencies are an alternative to traditional banking, they are not a threat to it. The reason for this is simple currencies like Bitcoin and Ethereum have made transactions faster, cheaper, and more secure than what was available before.

Cryptocurrencies offer many improvements over traditional banking systems because they use blockchain technology. Blockchain technology can get used in various aspects of our lives including finance, health care, and government services. In addition to being fast, cheap, and secure. Blockchain has other advantages over existing systems such as:

  • lower transaction fees (average 2%)
  • transparency (each transaction shows who sent money)
  • immutability (information cannot get changed by anyone)
  • decentralization (no central authority).

Cryptos Are Not as Volatile as They Seem

Let’s start with the easy one. We’ve all heard that cryptos are volatile and that they can fail. But these myths aren’t true at all!

Cryptocurrencies are much less volatile than many other asset classes out there like stocks or bonds. And while it’s true that no asset gets a guarantee against failure, not even the U.S. dollar. There’s no reason to think cryptos are any less likely to survive than those other assets you may have in your investment portfolio already. Cryptocurrencies are here for good!

Cryptos aren’t a bubble, they’re a new asset class entirely! This means they’re not tied to any one thing and can get used as:

  • payment systems,
  • stores of value (like gold)
  • even collateral for loans (like real estate).

They also come with their own set of risks. But these should be manageable if done properly through diversification and careful research before investing in crypto markets directly.

Options such as index funds could also provide some level of protection against volatility. While still allowing exposure through investments like ETFs which track indices across different types within this broad category (eSports gaming compilations).

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