4 Key Misconceptions About Cryptocurrency

4 Key Misconceptions About Cryptocurrency

The rise of cryptocurrencies has been undeniable. With the rising trade value of bitcoins and ethereum it can be clearly seen that that the era of cryptocurrencies is upon us. In fact, financial institutions all over the world have claimed that Bitcoins are indeed a better investment than gold and other precious metals at this point in time. It is also interesting to note that in 2017, the United Nations sent financial aid to Syrian rescue camps via means of cryptocurrency (so as to minimize any internal losses).

However, even with all this information out there on the interwebs, it is still staggering that a lot of people are still unaware of how these currency channels actually work. The words ‘Blockchain’ still do not ring a bell with many people because the media has portrayed Bitcoins and other such currencies as being unreliable and fraudulent.

Lastly, it should be noted that during a recent interview with Eric Lamison-White, Co-Founder of Pareto Network, he clearly states that his company conducts all its business transactions using digital currency payments so as to incentivize objective financial information within the company’s network.

Some False Information That Needs To Be Rectified

Cryptocurrency Does Not Have Enough Buyers:

This is one of the most common arguments that are used against the use of cryptocurrencies. In Fact, it is interesting to note that Bitcoins and other such platforms have a lot more fluidity than other standard currencies, making them a hotbed of activity.

Another interesting aspect is that the buying and selling of cryptocurrencies is actually quite easy. Due to its completely digitized form, bitcoins etc can be traded instantly through a very practical/ straightforward procedure. Typically, a digital asset exchange is involved with the exchange of cryptocurrency. Thus, in order to maintain full transparency many prominent exchanges generally promote transparency by “scheduling public auctions at certain times during the day where users can buy and sell millions of dollars worth of crypto”.

Also, we should keep in mind that crypto exchanges function like stock markets with the added advantage that they are functional 24/7. They are even accessible to buyers/sellers all around the world making it much easier for people from remote locations to trade.

They Are Not Safe And Can Be Easily Stolen:

Another claim that is routinely made is that of cryptocurrencies being susceptible to theft and misuse. However, this is quite far from the truth as many prominent security experts have commented that due to their digital nature, they are in fact more secure than fiat currency if the correct measures are taken. Lamison White, a former investigator for the FDIC has said that thefts in fiat currencies far outweigh those that happen with cryptocurrencies. He goes on to add that there is an unfair bias towards these currencies as every time a Bitcoin theft occurs, the international media makes it out to be a big case, when in fact many more substantial thefts take place among world banks and other financial institutions.

They Lack Strong Regulatory Practices:

This again is not really an accurate statement as Lamison White comments that the regulations that have been imposed on these cryptocurrencies have very little effect on the overall value of the currency or even the trading experience the user encounters. Also interesting to note is that cryptocurrencies follow regulatory practices that minimize area for error and misuse, thereby making them highly secure.

They Require A Stable Internet Connection At All Times:

Picture this, there is heavy snowfall in your city and the authorities declare there might be no electricity for the next couple of days. For the average person the thought might arise that crypto trade in such a circumstance would be impossible. However, the truth of the matter is that Bitcoins remain a viable means of exchange irrespective of the external conditions that we might be faced with.

4 Key Misconceptions About Cryptocurrency Conclusion

Today, with the advent of many new apps and software, users are already storing cryptocurrencies, completing transactions, checking their balance all while staying offline. Essentially it should be understood that all that is needed to be understood is that bitcoins and other such currencies work like normal money and can in fact be utilized with or without having seamless access to the internet at all times.

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