The total value of the cryptocurrency market is in the order of $ 1.7 billion to date, according to CoinMarketCap, and although cryptos are at the forefront of everyone’s life – even for non-investors thanks to endless celebrity tweets, memes and headlines – there’s a lot of misconception out there.
Let’s take a look at a few of them:
Misconception # 1: Cryptos are for illegal and criminal transactions
While cryptocurrency may be attractive to criminals due to its inherent pseudonym nature and ease of transfer, crypto-related crime has declined significantly in 2020, according to research by Chainalysis.
Research notes that in 2019 criminal activity accounted for 2.1% of all cryptocurrency transaction volume, or about $ 21.4 billion in transfers, in 2020 the criminal share of all crypto activity -currency fell to just 0.34%, or $ 10 billion in transaction volume.
âIt is true that cryptocurrencies can be used for illegal purposes to some extent,â said Timothy Robinson, CEO of InVPN.
âThe US dollar, on the other hand, remains the most preferred currency for black market transactions. Fiat money, like cryptocurrencies, can be used for illegal transactions or operations. Most things that can be used for good can also be used for evil, from Microsoft suite products used to draft anarchist treaties or account for extortion payments to car bombings and terrorist messaging apps â , he added.
Misconception # 2: cryptos will be banned, governments will end it
Some countries have imposed bans, including Nigeria, the world’s second-largest cryptocurrency market after the United States. The country has banned trading in cryptocurrencies, according to Deutsche Welle, a German outlet. India has proposed a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets, according to Reuters. The bill would represent one of the toughest policies in the world against cryptocurrencies, penalizing the possession, issuance, mining, trading and transfer of crypto assets, Reuters reported.
The United States is unlikely to face a similar scenario, however, despite some crypto-skeptics and critics voicing concerns about cryptos, such as Treasury Secretary Janet Yellen, who said the United States had failed. no framework to properly regulate digital currency, according to The Wall Street Journal.
However, SEC Commissioner Hester Pierce aka “crypto mom” recently said: “I think we are past this point. [where governments could effectively ban crypto] because you would have to shut down the Internet, âaccording to MarketWatch.
âA government could say it’s not allowed here, but people could still do it and it would be very difficult to stop people from doing it. It would be stupid for a government to try, âshe added.
âCryptocurrencies, according to skeptics, will soon be banned. However, there is no evidence that this will happen anytime soon. In fact, financial regulators around the world have simply said that the crypto industry needs further regulation, âGary Amaral, Airborne App marketing advisor, told GOBankingRates.
Misconception # 3: cryptos are complicated
Marie Tatibouet, CMO at Gate.io, a global blockchain asset exchange platform, told GOBankingRates that while it’s a common myth, it’s really not difficult.
âYou don’t deal with the underlying code at the surface level, nor do you do smart contracts,â Tatibouet said.
âThere are only two things you need to take care of. Make sure that you are using the correct public address (for example, don’t send Bitcoin to an Ethereum address) and that you don’t share your password or private key with anyone. It really is. Modern stock exchanges and wallets have made interfaces much more accessible, âshe added.
People tend to be intimidated by crypto because they think only financiers can understand it. âThe point is, you don’t need to know anything about cryptocurrencies to use them, just like you don’t need to know how to build a phone to use one,â the said. technical security expert Michael Robinson.
âYour knowledge is determined by what you want to learn and do with it, so mastering the fundamentals is sufficient for activities such as trading, investing or just owning. Managing crypto won’t be difficult if you already know how to work with real money online. These systems are similar and simple to use. New things can be confusing, but using cryptocurrency as such doesn’t require you to be an expert, âhe added.
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