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6 Common Misconceptions about the Crypto Industry

may feel intimidating to even peek into the fast-growing crypto world. As common for us with anything novel in life, there are many legends and rumors already about cryptocurrencies and their nature which roam rapidly among listening ears.

Here we will list 6 of the most common and fundamental misconceptions about the crypto industry and its mechanics that have spread around the world.

1. It’s Not Secure

Crypto-currencies are a product of blockchain technology. Cryptography, that is, as in real life, the encryption method used to secure transactions in the blockchain, allows investors and people to make their assets stay safe and effective. There are various security practices and limit restrictions in the stock exchange, as well as various actions and practices such as providing an environment of trust to its investor and preventing illegal activities.

2. No One Can Be Held Responsible

The fact that cryptocurrencies are decentralized is actually a huge advantage and their most powerful feature. There is no way to decommission transactions that take place directly between the buyer and seller on the blockchain, eliminating the time cost. Currently, in the banking sector, where high transaction fees have been cut, money transfers from one country to another country occur within a day, while with cryptocurrencies, this time occurs in a mere amount of seconds. Due to the fact that it is not influenced by any external forces, the determination of prices between the buyer and seller also reduces the reliability and risk of cryptocurrency investments to a minimum level.

3. It Would Kill the Financial Sector

In today’s world, resources are scarce, and needs are virtually unlimited. And economics is a branch of science that studies the distribution, production, and sharing of scarce resources to unlimited needs. In the constantly developing and digitalizing world, various innovations are coming in the field of economics, and the most important of them is monetary evolution. Now that we are approaching Industry 4.0 and are preparing its grounds, cryptocurrencies have appeared as new investment tools and currencies in these times, which would not have been inflationary in nature; the change in their prices does not affect the values of goods and services.

Ever since various mine resources are slowly decreasing and coming to an end, states and companies are looking for and working on different investment tools. The fact that investment is the most important factor in the development of a nation’s economy and plays a big role in the growth of GDP pushes countries to look warmly at cryptocurrencies and work to issue their very own variations.

4. Crypto Transactions Cannot Be Tracked

Transactions that occur on blockchain technology are recorded on a distributed ledger, and each block in which these transactions are recorded is connected to each other by chains. Although the identity of the person who made the transaction is unknown, the address used can be accessed and tracked by all users. This is related to the transparency and reliability of cryptocurrencies and is one of the most important factors of reasoning for investors’ and people’s preferences.

5. Crypto-Currencies Are Illegal and Their Use Is a Crime

This issue, which has been expressed since the early days of cryptocurrencies, is completely unfounded and anonymous. Countries that lead the economy, such as America, Japan, Germany, South Korea, Switzerland, are constantly making legal regulations and agreements related to cryptocurrencies. Although there is no concrete statement in any illegal way regarding the cryptocurrencies that the central banks of these countries are also working on, they will be subject to legal regulation and supervision.

6. Crypto-Currencies Are Just a Fad and Temporary

Crypto coins that entered our lives with Bitcoin were born as special occurrences. In 2021–2022, we see that corporate companies are starting to embrace these new investment tools and blockchain technology. The future trend is that states and public organizations will also embrace and internalize this new technology. Recently The Central Bank of China has finished the study of the digital Yuan, and it’s begun to be used in many cities already. When taking a cab, taking the subway, or even buying products from a mobile seller, Chinese citizens make a digital Yuan payment through the application that they downloaded to their mobile phones. Now this suggests in reality that cash could soon become a thing of the past.

Now that we debunked these common misconceptions, your choice to start investing should be much easier to make. If you are ready to ensure a financially free future, let Your Friendly Crypto Exchange be your guide on this amazing journey. Trade with IXFI today.



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