9 Myths About Blockchain & Cryptocurrency that You Should Know - The Video Ink

In case you’re living under a rock, Bitcoin was the first-ever Cryptocurrency to launch in 2009. We have come a long way since then! Today, there are thousands of other decentralized currencies. The Crypto market is estimated to be over $2 Trillion in December ’21. With these impressive numbers, came a bunch of myths and rumors people blindly believe surrounding decentralized currencies.

Let’s dig deeper into the popular misconceptions and dissect them to a granular level. Our purpose here is to bring out the facts, so let’s dive in!

Myth 1

Cryptocurrency Is Feasible For Day-To-Day Payments.

Digital currencies such as Bitcoin and Ethereum exist to replace traditional payment methods such as cash, debit cards, credit cards, or checks. The Bitcoin white paper introduced a decentralized financial system that eradicated negotiations. It envisions a digital payment system that will allow two individual parties to transact directly without the need for intermediaries.

In reality, the scenario is quite the opposite. Performing transactions using Cryptocurrencies is sluggish and might cost you a high fee. Lately, the transaction fee for just one bitcoin transaction spiked to $20. Though Ethereum enables faster transactions, it also has a high transaction fee.

Cryptocurrencies are an unreliable means of payment. Their wild volatility confirms this. For instance, Dogecoin was trading for 20 cents last year in April. In the next three weeks, its worth tripled. Ten days later, its value fell to half that peak. The difference is just as though $5 could get you just a can of juice one day and a bottle of expensive wine a few weeks later.

On regular days, coins like Ethereum can swing by 10 percent back and forth, making it too unstable to be practical. Tesla had implemented a policy in early 2021 that it would accept Bitcoins as a form of payment. Owing to the volatility of Bitcoin, Elon Musk reversed the policy announcing that Tesla would not accept payments via Bitcoin anymore.

New kid on the blockchain: Stablecoin promises steady crypto

Myth 2

Bitcoin Is Fading, And Meme Coin Is The Future.

Bitcoin is almost a household name now, and investors have turned faces towards other cryptocurrencies such as Dogecoins. A Forbes headline recently read, “Bitcoin and Ethereum are being trashed by Dogecoin”.

Dogecoin and similar cryptocurrencies, a.k.a ‘meme coins’, exist around hype. It would be inaccurate to consider them for actual transactions. Prices of these Cryptocurrencies crash or surge on random events, such as tweets from Elon Musk.

Bitcoin’s technology may seem a bit outdated compared to some of the latest Cryptocurrencies. Others might offer faster transaction validations, anonymity for users, and much more perks, Bitcoin still tops the list of cryptocurrencies. Its worth is nearly half of the total value of all digital coins.

Myth 3

Cryptocurrencies Will Eventually Cease To Exist!

Nourel Roubini, an economist, considers Bitcoin as the ‘mother of all scams.’ He heavily criticizes it as outdated technology.  However, crypto is one of the most traded markets with a total market cap above 2 trillion dollars. Professional traders, crypto signals telegram group provider,s and newbie traders are all booming and making it a career choice.

For the record, Cryptocurrencies are not very stable investment assets. Still, they are revolutionizing the world of money and finance into something greater day by day. As technology transforms, digital payments will ascend due to stablecoins. It will probably make paper currency almost non-existent.

Central banks all over the world have started designing their digital currencies. Countries like The Bahamas have already introduced their own central bank digital currency. Others like Japan, China, and Sweden are already in the process of designing and launching their own.

Amount-heavy transactions like buying a home or car will soon be managed via computer programs running on Cryptocurrency platforms. Looking at the state with which technology is transforming, the software might take the place of intermediaries very soon!