Digital money has always remained an obscure concept, which keeps unfolding with each stage, but keeps coming back to an uncertain state with its volatile nature. The unpredictable nature of the cryptocurrency market has made people think twice before getting involved in deals relating to it. This status of the market baffles the users furthermore, and the ones that are on the verge of embarking the crypto trade would likely step back. While the market has witnessed great flourishing moments, it has had its fair share of downfalls as well, from where the market has come back up on its feet with all might.
With many myths circling the cryptocurrency market and blockchains, people who are incognizant of the working of cryptocurrencies are likely to remain the same while others who are potential patrons might have an uncertain outlook towards it. Cryptocurrency is an essential part of the economy; keeping aside the myths that can be easily reprimanded for the baselessness it possesses. It is undeniable that the nature of the market is capricious and to ace in this trade one has to know market workings.
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Quash the myths that are misguiding
The cryptocurrency market has had a rollercoaster ride with frequent rise and fall of the various cryptocurrency market values and thereby affecting the investors’ financial status also. But this is not the case always, with the market witnessing a high for a long time with different cryptocurrencies leading the market. The first step towards ceasing the apprehension within the potential users is to stop giving ear to the myths that have already been refuted by many professionals over time. Indeed, handling of the crypto accounts is not easy, but a thorough study can help you and as the first step one has to stop giving in to some myths related to cryptocurrency and blockchain, some of which are:
- Mistaking of Bitcoin with Blockchain: People with no much knowledge tend to slip and mistake Bitcoin for Blockchain. Both these are different, where Blockchain is something that does not require Bitcoin for its existence; it is merely a technology or platform that facilitates a peer-to-peer transaction of money and cryptocurrency. Whereas, Bitcoin is a cryptocurrency that is created on Blockchain and can be transferred between peers, which would be completely decentralized.
- Blockchain is not made just for cryptocurrencies: The blockchain is not a technology that was tailor-made for cryptocurrencies. Cryptocurrencies work most efficiently with these blockchains, but that does not mean blockchains are limited to the field of digital money. It is a platform for transfer purposes that can effectively work in many other areas of work, be it the food industry or even the hospital facilities.
- Digital tokens are not the same as digital coins: People very often consider digital tokens the same as digital coins. While coins are just a form of payment that stores a value within them and serves the purpose like that of a real currency through exchanges and payments, tokens are not the same as coins. The tokens also store value within them, but with more extensive options and representing many more intricate and valuable alternatives like property and income.
- Three types of blockchain: There is a myth relating to the limitations of blockchain, stating that it has just one model to support its existence. But it has three types; Public blockchain, Private Blockchain and Federate blockchain.
- Cryptocurrencies are not a platform to perform crimes: Cryptocurrencies have been a platform for criminals to flourish for a long time; there is no denying. Since then, the regulation of the market for better performance has been of prime concern. Many countries have legalized the use of cryptocurrency with strict regulations over it, making it safe to use without the risk of criminals exploiting your accounts.
People have an apprehension towards cryptocurrency, with the belief of existence of the above myths and people need to understand that the scenario has changed and that its existence is vital for economic stability.
Significance of cryptocurrency
With many frauds working in the real world of banking now, places to where we as users have no access, alternatives are mandatory for the industry where digital money with its decentralized approach can help. It offers low-cost transaction methods with the preferred privacy and autonomy over your accounts and transactions. Cryptocurrencies provide you with all these facilities and safe storage of your money in the wallets too. All these factors make cryptocurrency unique and significant in today’s age.