June 30th, 2021

A diverse collection of cryptocurrency coins, including Bitcoin, Ethereum, Ripple, and Litecoin, intricately arranged in a circular pattern symbolizing the vast ecosystem of digital currencies in the market

Must Read: Top Myths About Cryptocurrencies

Cryptocurrencies have been around us from a very young age. Beginning with Bitcoin, there have been thousands of cryptocurrencies that took the world by storm. However, there are uncertainties, myths, and chaos surrounding the crypto space. Virtual currency definitely needs a specific intervention where all those myths are burst, and we watch cryptocurrencies living in the real world. Those misunderstandings are the significant challenges to deal with to get going with cryptocurrency. Here you go, we got you!

Let’s Burst the Myths Surrounding Cryptocurrency

Bitcoin is the only cryptocurrency.

Nope, not at all. We all know the advent of Bitcoin has laid the foundations for thousands of cryptocurrencies. It has become so popular that people still go crazy for it after having numerous crypto assets around. But Bitcoin is not the only one that matters. Due to its high liquidity in the crypto market and the high liquidity ratio, one can quickly sell it at the marketplace, and hence it still remains popular. Also, its price – Bitcoin has gained massive traction from across the world due to its price.

Read: What is Bitcoin and how does it work?

Although Bitcoin tops the list of cryptocurrencies, others are also gaining a lot of popularity and attention. Well, Ethereum’s economy hits new milestones in transfer and market cap. Why not think of it?

Cryptocurrency is Illegal.

Again, a big no. It is often misunderstood that a cryptocurrency is an illegal form of digital money mainly used for criminal activities or making any illegal purchases. But no, crypto-assets can be used for several purchases such as food, clothing, etc. Cryptocurrencies are wrongly intertwined as an unlawful form of digital money. 

Undoubtedly, they are not. Cryptocurrency is growing, and it has a great potential that the world might start pursuing businesses through cryptocurrencies. We never know!

Cryptocurrencies are easily hackable.

This is a big misconception. Digital assets or cryptocurrencies are not easily hackable. Although they are prone to hacking or fraudster attacks, it would be a false statement to say that they are entirely hackable. Cryptocurrencies are backed by robust technology, the blockchain. This disruptive technology ensures that cryptocurrencies are stable, safe, and securely stored in digital wallets. All the crypto transactions are secured in the blocks and encrypted.

Cryptocurrencies are not taxable.

Cryptocurrencies are independent, and no central authorities or banks involve in crypto transactions; this doesn’t mean that cryptocurrencies are tax-free. IRS always watches cryptocurrencies, and it has a new tax form out for all the crypto traders. Crypto enthusiasts or investors should be aware that the IRS first introduced its guidance and regulations regarding the tax treatment of virtual currencies. Hence, a taxpayer who receives cryptocurrency as payment for goods or services must include the fair market value of the digital currency, measured in U.S. dollars.

Cryptocurrencies might get banned.

Although cryptocurrencies were banned in a few countries, others such as the USA, India, and others are positively moving towards cryptocurrencies. Countries or governments are trying to explore the digital currency space and learn more about the regulations that almost symbolize the positive side of cryptocurrency.

So, there is a potential market for cryptocurrency, and soon, we might all switch to a crypto-based payment system. A few top firms such as Microsoft, Overstock, KFC Canada, and others are already embracing cryptocurrencies for their respective purposes. As a result, sooner, we will all live in the virtual currency space that digital and cashless!

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