DEMYSTIFICATION OF SOME MISCONCEPTIONS ABOUT CRYPTOCURRENCY
We’ve all had that friend who probably got very unlucky while "apeing" into a crypto project or greedy and lost some money to cryptocurrency. Such a person, as we know, often adds to the stereotype that the world of crypto is a plot to scam everyone — actions based on the feelings of one who is not well-grounded in the crypto space.
Having been exposed to such persons or posts, one can gradually develop conflicting thoughts on what truths to believe.
Looking up "cryptocurrency" on the internet would provide information that would make you a believer. Then, that bitter, inexperienced fellow’s constant posts about crypto contradict your findings online and leave you confused.
Are you confused? Don’t stress over it. Below are some of the many misconceptions about cryptocurrency and why you should debunk them.
Common Misconceptions About Cryptocurrency
Before we dive right into it, let us take a moment to remind ourselves of some basic facts on crypto.
Fact 1: Cryptocurrency is a virtual currency or digital asset built on a decentralized blockchain network and secured by cryptography. It is nearly impossible to counterfeit because of the working principle of cryptography on distributed blockchain technology.
Fact 2: The decentralized system cryptocurrency operates on makes it impossible for any government or other regulating bodies to absolutely control the cryptocurrency space. However, it can be regulated. Also, cryptocurrencies are not "physical or fiat" money but have value and are not controlled by any bank or government.
Fact 3: Cryptocurrency allows for a much faster and cheaper transfer rate of heavy funds over a decentralized system that has not and will not collapse at any given time.
That’s why our unique, next-generation, cross-chain exchange platform, SWFT Blockchain is widely preferred by investors because of its support and ability to transact between over 600 cryptocurrencies at high speed.
Fact 4: Except for the price volatility and some unavoidable scam activities which are found in almost every other industry and not peculiar to cryptocurrency, it has proved to be one of the safest and quickest ways to transact businesses online.
Fact 5: No one can ban the cryptocurrency market. We have several countries whose governments advise against using this exchange system, but due to the many simple methods of getting a crypto wallet and its unregulated transactions by the government and banks, physically banning cryptocurrency is impossible.
Fact 6: You are likely to lose all or some of your funds if you jump into the crypto space without sound knowledge of how it works. Hence SWFT Blockchain has devoted time to conducting several Ask Me Anything (AMA) series in partnership with top-industry verified platforms and trusted projects to educate thousands of users around the globe on how to grow and maximize the several opportunities presented by the crypto industry.
Now that facts have been established, let us try to understand some misunderstood thoughts or opinions about cryptocurrency, possible reasons why they arose, and why they should be debunked.
Cryptocurrencies Are Scam:
Cryptocurrency as a means of exchange in daily transactions has skyrocketed. Small retail traders have adopted this transaction system, and governments have tried to regulate the cryptocurrency space. If crypto were a scam, it wouldn’t be a worldwide phenomenon, and governments would not pay special attention to seek ways of improving it to suit their citizens.
While scammers have made several attempts and actions to use this transaction system for fraudulent purposes, it is pertinent to note the differences between what the scam is and what medium is used for scams. For example, Internet fraud has been in existence ever since people understood the use of the world wide web.
Transactions are made over the net without traveling to the third party’s destination physically, yet there has been over a $5 billion loss in online fraud since 2017.
So, we can say that the internet is not a scam; the misuse of the internet with the intent to defraud people is a scam. That’s how it is in the crypto space.
Many people dread this efficient medium of exchange because of the reports of fraudulent activities that scammers have perpetrated through it.
To avoid a potential scam in the crypto world, you’d have to:
i. First, understand what cryptocurrency is all about.
ii Thoroughly research each Initial Coin Offering (ICO) or project, the team involved, and the major companies investing in such project.
iii Exercise caution.
Digital Currencies Don’t Have Value:
Value is a subjective concept based on the preferences and perspectives of a group of people regarding a particular thing in a given period.
It is common knowledge that any currency’s value depends on its purchasing power as a commodity, which is affected by its popular demand by people. Hence, if a group of people thinks that a particular product or item should be worth more, its value automatically increases.
In 2009, after its initial launch, Bitcoin had a price value of $0 because people never really gave it a thought. As the years rolled by, the perception of the then-innovation was keyed, and people’s perspectives grew. On the 13th of April, 2011, the value of Bitcoin was placed at $1. Through the constant price volatility and variations, it rose from nothing in 2011 to its All-Time High of about $68,990 on the 10th of November, 2021 and it will keep surging based on the transactions going on in the crypto market.
Worldwide, leading enterprises and prominent investors have adopted cryptocurrency and use it regularly to finance investments, transactions, and many more. Although the value of cryptocurrency fluctuates due to perceptions, demand and supply, and sometimes, economic occurrences, this is no different from other actual currencies and valued assets.
Cryptocurrencies Are a Fad:
We went from arguing that the internet was just a space for tech geeks and for criminal activities in the early 90s to using the internet in our daily activities now. People also argued that emails were for only top techies and that iPhones would never leave the first stage of production because people preferred to use their telephones and music player on two separate devices — all these have proved to be mere phobias clogging the minds of those who lack faith in developments through technology and innovation.
Tech giants like Microsoft, SpaceX, Tesla, Paypal, etc., have heavily researched and adopted cryptocurrency as a means of payment for services or their products. Cryptocurrency is here to stay; from the evident results it has yielded and the increasing innovations derived from it.
Cryptocurrency will replace Fiat currency:
As much as it has gained momentum, the world of crypto has not attained the interest it needs to replace the fiat currency that all nations have used for centuries. As a relative innovation, cryptocurrency needs to be fully adopted to increase its value and purchasing power before it can ever replace fiat currency.
However, government and regulating bodies will not adopt the cryptocurrency style of transaction because of the regulating control over the fiat currency, which would not be available if using Crypto.
Cryptocurrency is here to stay — safe, reliable, and efficient enough. Despite the ill-opinions, results are being made, and lives are changed daily. If you’re looking for one platform where you can learn more, safely transact your business and grow in the crypto industry without stress, try SWFT Blockchain, now.
We are continuously innovating services that are carefully designed to make your experience swift and secure. At SWFT Blockchain, we are more focused and committed to reducing the time involved in executing a transaction, thereby saving you time while ensuring that your assets are safe.