Bitcoin was the original cryptocurrency launched in 2009, and since then, the crypto space has evolved too much. Now, you will see that there are thousands of Crypto coins with a different value in the market, and we can see that there is a total valuation of about $2 trillion worth of cryptocurrencies in the world. The increase in the prices of cryptocurrencies back in 2021 was very significant. The original cryptocurrency bitcoin reached $69,000, the highest for any crypto ever in history. Also, many people believe that cryptocurrencies are a bubble, and it is about to burst in the future. However, it is just a myth. Just like this, there are a lot of myths that people believe in too, and if you want to clarify them, you are certainly at the right place. Clarifying every doubt regarding cryptocurrencies is very important if you want to make a future into it. However, it won’t be easy with the wrong conception of cryptocurrencies in your mind.
The main reason behind the spread of the most common cryptocurrency myths is the evolution of technology. As technology evolves, many people make predictions on something that they do not even know about. Cryptocurrency is still a new concept, and they still think that they know everyone thinks about it. Today, we will provide you with the details on some of the reasons you need to include in your financial portfolio and the popular myths related to cryptocurrency that you can clear your doubts about.
Crypto is real money.
But most investors believe that cryptocurrency is real money, and they can use it for making payments anywhere they want. Let us tell you that it is no one else but ETH, which is designed in such a method that can be used to make payment. If you consider bitcoin to be a suitable method for making payments in every corner of the world, indeed, you are wrong. You can consider it an electronic medium of making payments, but it will never be the real money for anyone. It can be considered a better medium of claim settlements, but it is not always possible. Every time you make a transaction in bitcoin, it takes about 10 minutes to facilitate it, and therefore, the average fee for the transaction in one bitcoin will be $20. However, the second-largest cryptocurrency, ETH, can make a better place because it facilitates transactions faster than bitcoin.
Crypto is a good investment.
Most investors believe that cryptocurrency is an incredible investment and better than traditional investments. Let us tell you that the central banks in different corners of the world believe in keeping their commodities and assets in terms of physically existing things. No bank in the whole world believes cryptocurrencies to be a good investment just because they exist in the physical world. Sometimes, cryptocurrencies could be a better option for making adjustments, but they are just profitable in that manner. You must be aware that cryptocurrencies seem like commodities like gold, but they are nothing similar.
Bitcoin is fading
Recently, many crypto coins based on jokes are getting popular, and therefore, people believe that bitcoin is feeding. Well, let us clear this misconception of yours. Even though bitcoin has been declining its prices lately, there is no clear evidence that the joke coins will surpass bitcoin any time soon. The bitcoin going down is just a part of its momentum, and eventually, it will rise further higher than its price levels which were the highest in November 2021.
Crypto will replace the dollar.
There is nothing we can consider as a backing commodity for cryptocurrencies. It is just the people’s faith in it that gives the cryptocurrencies their value. On the contrary, the dollar is backed by the United States government. Therefore, if you have a dollar in your hand, the government will be liable to pay you something equivalent to the dollar’s value. However, this is nowhere the case with cryptocurrencies. Even if you have thousands of cryptocurrencies, or even bitcoin, in your hand, the government does not comply with any binding to give you the equivalent value of the commodity. Therefore, once the fate of people is lost in the crypto coins, the crypto coins in your hands will be worth nothing more than trash.