5 myths every crypto investor is tired of hearing
If you have ever told someone you are a crypto investor, they have probably responded with such questions as “Isn’t that what criminals use to buy drugs?” or perhaps “Aren’t cryptocurrencies kind of pointless?” You may have responded by rolling your eyes or simply denied their claims, as these are the usual reactions from people who have yet to understand the actual uses of cryptocurrency.
These are just a few myths associated with cryptocurrencies that crypto investors constantly face. If ever given the chance, feel free to use the following list of proper responses.
Myth 1. Cryptocurrency is only used by scammers and criminals
Out of every myth on this list, this one is by far the most ridiculous. Unfortunately, one of the earliest forms in which cryptocurrencies were displayed to the public was through news reports of its illicit uses on the dark web. Due to a few people using cryptocurrencies to purchase illegal items, it was deemed by many as a currency for criminals.
Cryptocurrency, like any new offering or technology, is a double-edged sword. While cryptocurrencies have provided many positive uses to society, they can also be used negatively — however, that doesn’t necessarily mean this is what they were designed for. Same as if someone uses dollars to purchase illegal goods, that doesn’t mean a dollar itself is illegal.
Myth 2. There are no ‘real-world’ uses
Another common myth that someone even brought up to me today. In response, I described the current situation in Venezuela. The country is suffering from hyperinflation causing its national currency, the bolivar, to drop in value by almost 95%. To purchase a simple meal, Venezuelans literally need to pay with stacks of cash, this is why the cryptocurrencies are being widely adopted throughout the country. Their low fees and instant transactions make them much more useful than Venezuela’s national currency. In this case, their ‘real-world’ use is so real that cryptocurrencies are literally feeding the country plagued by hyperinflation due to the negligence of the government and central banks.
Besides providing an alternative and stable currency to an entire nation, cryptocurrencies can be used to purchase various products and used as an investment tool as well.
Myth 3. Cryptocurrency trading is too complicated for novice traders
The same could be said about stocks. No one enters the stock market and makes vast amounts of money overnight. Traders educate themselves. They learn how the market functions, they stay updated, and they eventually learn the skills necessary to make a profit. Anyone with access to the internet can purchase cryptocurrency and begin trading within an hour.
Myth 4. Cryptocurrency is a scam
It is true that scams have run rampant throughout the cryptocurrency industry within the past year, however, calling all cryptocurrencies a scam is absurd.
Although many entered cryptocurrency markets trying to make a ‘quick buck’ through scams, more knowledgeable users can easily detect a scam from a mile away. With any emerging market, scams are common as many investors are still unaware of how to avoid one. If all cryptocurrencies were a scam, how have so many people managed to legally build wealth on it? Simply through informed profitable trades and secure transactions.
Myth 5. It is not regulated
This may have been true when cryptocurrencies were first introduced, but now it is hardly the case. As cryptocurrencies have increased in popularity, so have the regulations surrounding them.
Almost every aspect of cryptocurrency is currently regulated throughout the world, including exchanges, trading, mining, crowdfunding and initial coin offerings (ICOs). All of them have a set of regulations to ensure security.
Debunking a myth
The next time someone gives you one of these lame excuses as to why they have not adopted the use of cryptocurrencies, try to refrain from rolling your eyes. Instead, pull out your phone and show them this list. Many of these myths have been constructed through false reporting or just plain ignorance.