4 BIG Misconceptions About Cryptocurrencies
As the mass of cryptocurrency battalions ever increases, so follows the amount of misinformation disseminated through the ranks. Where a wild west and lack of saturated, transparent information exists, so do those who will try to take advantage of and profit from others in any way possible. The crypto world has unfortunately been no exception to this rule of law.
This is where we come in!
In our past few articles we’ve really driven home the different ideologies, styles and structures that define the big hitters of the cryptocurrency world. Now that our future users have a basic understanding of what the different modules do, now it’s time that we flesh out some of the more basic misconceptions and misunderstandings surrounding our beloved currencies. Forward unto transparency!
1. Cryptocurrencies are only used by criminals and darkweb goons
We’re going to come out of the gates strong on this one and set up with a solid, resounding — No…. No no no no! This could not be more wrong! Cryptocurrencies have a level of utility that transcends trading illegal goods or any other undercover operation which is easily made seen through groups like Ethereum. Private entities are already being seen using Ethereum, or even Factom to monitor points of data like land ownership and create secure two-way contract verification. Even governments are using cryptocurrencies to store and transfer top secret documents! Whereas certain underground markets may have been the early adopters, the potential for crypto’s outside of the darkweb are limitless.
2. It’s not real money and it’s ultimately illegal
Wha- How… Why? No seriously. What? Not real money? Illegal? Come again? It kills us to hear this. An individual wouldn’t consider the US dollar to be fake despite its backing being non-existent, so why should that train of thought spawn in the arena of crypto’s? The money supply in the U.S. has grown by 4.59x over less than 7 years while cryptocurrencies have a pre-set creation of coins that can’t be changed. Cryptocurrencies like Bitcoin exist as a result of intrinsic value and belief in those values. Their anonymity, ease of use and other complex factors drive their inherent worth and faith in the market, or coin. Posturing the inherent value and market faith against supply and demand creates for a robust economy of legitimately useful money. None of that fiat junk.
Onto addressing the legalities. Now maybe if you live in Kyrgyzstan or Ecuador and have a wacky government you might find yourself in the throes of cryptocurrency legalities, but fortunately for the majority of the world this is not the case…. And even then, Ecuador sees a value in the realm. They’ve pledged to develop their own national cryptocurrency, but just don’t want to use others. Just because certain people might see immediate usage in black markets, we’re fortunate that the majority of worldwide governments are intelligent enough to recognize the world-shaping potential of cryptography. We very seriously have created a tool in blockchain and cryptocurrencies that has the potential to solve some of the world’s most pressing issues. .
3. Cryptocurrency mechanisms are tough to internalize and use, and the volatility will never subside. It’s just a trend
It’s just a trend. You know what else was just a trend? Buying .com domains. Purchasing Apple products. Investing in tech over commodities. So when someone’s argument culminates in using a modifier like “just,” know that they probably don’t have much beyond that. It’s an appeal to emotion because in reality, the depth of blockchain and its protocols are immense. There’s a reason we see governments investing billions into cryptography and even private investors dumping millions into the crypto world.
Despite having the slightest amount of validity as far as the complexity point goes, we’re convinced that the barrier to entry for the crypto world isn’t as difficult as some would make it seem and even more so, as the tech pushes forward the resources available to laymen become more abundant. Essentially, as the tech becomes more developed, the barrier to entry is going to lower because the designers want you to use their product! They’re going to figure out ways to make it easy for you to use their items. They’re going to figure out ways to explain their ideas more simply, and even more so, they’re going to eventually figure out how to integrate this tech into your life seamlessly.
Imagine how easy it is to use your PIN with your debit card, but how advanced of a technology that is. Similar concept.
4. I missed the Bitcoin train so it’s pointless to dive in now. It’s too expensive and it could be shut down at any time
Bitcoin has been good for the cryptocurrency community. Really good. It’s created a fair amount of dialogue surrounding anonymity in transactions and sparked a worldwide discussion surrounding cryptography.
You can almost think of it like Coca-Cola for the soda industry. It’s a massive trailblazing brand that’s brought a lot of focus into how potentially awesome this new sector could be, but alas, there’s other soda’s. There’s Sprite! Dr. Pepper! Even Root Beer! And in turn, there’s Monero! There’s Dash! Even Ether! Just because one of the facets of the spectrum has done well, doesn’t mean that you shouldn’t dive in because it’s too late to capitalize on that one item… If anything it should prove to you that there’s a legitimacy in the industry and that people are really believing in it.
And even if you wanted to invest into Bitcoin over the other tokens despite the train having left the station, you don’t even have to buy a whole coin! You could buy, or invest into smaller pieces of a single coin. You don’t have to spend all $700 dollars in one place, which is another misconception that tends to manifest. These coins can easily be split and divided to make the transactions cheaper for everyone.
Now sure, you had your doubts about investing into Bitcoin because you thought opportunity already sailed and we fixed that, but what about the looming thought that someone could step in and take your money at any time? What if someone shuts all of this down?
Well, if you’ve read the past articles, you should know better than that by now… BUT, if you’re just joining us it’s a bit more understandable.
The blockchain and the protocols that exist on top of it, like bitcoin or ethereum, can never be stopped because of inherent system values. The network is completely decentralized which means there is no singular switch for a government to step in and flip. There’s no way for a malicious entity to move forward in turning systems off or flushing your money. That’s the value in having a network supported world wide! That’s why there’s so much potential in this system. People worldwide can work together anonymously with zero threat of intervention from governments, corporations or other bodies.
Conclusion
So maybe it wasn’t four misconceptions. We might have combined a few and addressed some more grand picture, but as I’m sure you could agree, for the better. You now understand the value in using cryptocurrencies in the real world. You’ve internalized the idea it’s a very real system with very real money and this is not a trend…
This is not a trend!
There are very big players investing big money into this concept and you should be as well. The barrier to entry is only going to become simplified as we move forward and you’re going to begin experiencing integration into all facets of your reality.
We want to stress that Bitcoin is not your only option and even if you feel like it’s the only one you could possibly place faith in, you can purchase smaller pieces of it to edge into the waters.
Ultimately it’s an industry that, while still young is a breeding ground for prevaricate and should be navigated carefully. The potential is limitless, but you have to make sure you’re internalizing the correct information at the right times, in the right ways.
If you like this post, follow me here on Medium, Facebook and Twitter or download the Coinstack app for more articles about cryptocurrencies.
