Since the invention of Bitcoin in 2009, people have started having their own opinions when it comes to investing in cryptocurrencies. In the beginning, most people or organizations opposed this digital currency in many ways. However, in recent years, things have quite changed. Investors are trying to invest through Bitcoins or cryptocurrency.
In the beginning, some of them were false, some were true. When it comes to investing in bitcoins,many myths are spread. Let’s take a look and debunk those as the world is slowly changing with the Oil Profit.
People use cryptocurrencies (Bitocin) for illegal activities
One of the most common and oldest myths is that Bitcoins are used for illegal or illicit activities. For its unregulated nature, the digital currency has been wrongly linked with criminal activities. Many illegal activities have been going on with the digital currency system. However, the opportunity is open with the fiat currencies as well.
The reason behind this myth is that mandatory anonymity for cryptocurrencies which is essential for the process. In the beginning, it was more popular in the black market which also fueled up the myth.
However, Cryptocurrency such as Bitcoin has gained huge popularity in countries like China, the United States, and India.
In other words, these currencies might not be real money but they are like commodities that can be very useful financial assets. Though there are few counties like Algeria, Russia, Bolivia that have banned Cryptocurrency. But this is not the same for all as countries like India, the US, and South Korea are very much in favor of the use of Cryptocurrency.
Cryptocurrencies are not a good choice option
Another most commonly spread myth is that cryptocurrencies, especially Bitcoin, aren’t environment-friendly. The reason behind this is the transaction of digital currency will need an enormous amount of electricity as it needs extensive computation. However, the mining value of cryptocurrency can easily outweigh the real cost involved in the mining operations.
Cryptocurrencies are not that secure
With the popularity of digital currencies, some concerns were also raised. Though most of these concerns are perception-based in various ways. Especially with various high-profile thefts and scams, security concerns have become stronger. There have been various issues with cryptocurrency. Such digital currencies used to be transferable without verification or identification issues, however, gone are those days.
In reality, the chances of theft or Scam would be there in every sphere unless we are conscious. Furthermore, with various initiatives of governments and renowned financial institutions across the world, the perception is bound to change. In countries like India, with the KYC verification process in place, the chances of wrongdoings using cryptocurrency like Bitcoin have become next to impossible.
No use in real life
Though the critics of Bitcoins or cryptocurrency have always been negative about the usage and value, in reality, historically, there has been a solid existence of the payment process without any presence of banking system or middle man in between as a mediator.
Nox tax payment involved in Cryptocurrencies
There has been a notion that since Cryptocurrencies or Bitcoins can be used as digital assets, these could be used as means to avoid unnecessary taxes. In reality, though a computerized system can control the functionality, it is not beyond the tax bindings.
Though the governments of banking institutions never claim to consider Cryptocurrencies or Bitcoins as proper currency in their primary financial functioning. Instead the cryptocurrencies are very much considered as capital assets which are nothing less than stocks in the hands of investors or business tycoons. Hence, these are very taxable.
Nothing but a database of monetary-cloud
Unlike the notion that the market has, cryptocurrency blockchains are like ledgers that are prepared in financial and accounting processes. The presence of blockchain ensures that there is no repetitive transaction by the Bitcoin miner. This process eventually increases the transparency level as well.
In a nutshell, Bitcoins or cryptocurrencies are no doubt useful assets in the financial process. However, with the advancement of time, there are many myths and wrong perceptions of bitcoins preferred. If you are a fan of Bitcoin, you should think twice to come to an understanding of whether or not to believe in such rumors.