Bitcoiners, Here’s the Top 5 Things Crypto Enthusiasts Shouldn’t Believe
Cryptocurrencies entered the market to revolutionize payments. What can be better than paying for a drink rather than with a fast and effective crypto transaction? However, not everyone is aware of the benefits related to virtual currencies and how they work.
As virtual currencies appeared just 10 years ago and became famous a few years back, there are some misconceptions about them that some enthusiasts believe in.
The first thing that users should know is that cryptocurrencies will not replace fiat money – at least in the near future. Fiat money, which is issued by governments is declared legal tender and they are not going to disappear in the next years.
Those that say that virtual currencies will be replacing fiat money are most of the time thinking in a zero-sum game where cryptos cannot coexist with fiat. However, today there are several virtual currencies operating side by side with fiat currencies. And indeed, the community is usually happy when an exchange adds support for fiat/crypto trading pairs because it helps new users to enter the crypto market.
In general, crypto haters say that virtual currencies do not have intrinsic value. However, this way of thinking can be applied to other fiat currencies around the world. In order to be considered a currency, it is necessary to fulfill different characteristics such as fungibility, scarcity, durability, transferability and divisibility. Cryptocurrencies comply with these characteristics.
They are fungible because they can be identically interchangeable. Some of them are also mathematically scarce. Moreover, they are durable because they can exist as long as the network continues. Finally, they can be traded for goods and services and are divisible into smaller units of fractions.
There are some individuals that say those that want to purchase a virtual currency have to buy a whole Bitcoin or a whole coin. This is not the truth. Most of the virtual currencies can be bought by fractions. Nowadays, a Bitcoin is worth almost $6,500 dollars, which is very expensive, but it is possible to buy fractions of 0.0001. Bitcoin can be divided in Satoshis which are equal to 0.00000001 BTC.
Another thing that people say is that cryptocurrencies are 100 percent anonymous. This is not like that. Cryptocurrencies can be tracked, depending on the privacy features they have. There are some virtual currencies such as Monero that cannot be tracked, providing more privacy to the user. However, Bitcoin can be traceable, since it has a public blockchain that allows for it.
Finally, cryptocurrency haters say that virtual currencies are used only for illegal transactions, something that is not like that. There are some studies that show that less than half of Bitcoin users and transactions are related to illegal activities.
However, we can consider that fiat currencies or gold are also used for illegal activities. Indeed, every single currency can be used illegally. There are several companies that accept virtual currencies as a means of payment for the goods and services they offer.
For those newcomers, there are several ‘slogans’ and phrases that some people say, however, not all of them are real. It is always good to learn and investigate more before accepting all that others say.