TOP-5 myths about cryptocurrency: what the real facts say

Cryptocurrency has always been a controversial topic - since Bitcoin conquered the world in 2017. While some welcomed new payment funds with open arms, others were more skeptical. And so it really continued. It is not surprising that the skepticism of many in relation to cryptocurrency led to a large number of conversations, which, in turn, led to the appearance of a number of myths on this subject. In this article, we will examine in detail 5 of these myths!

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Myth 1: Cryptocurrency is a bubble

Back in 2010, the price of bitcoin was less than $ 1, and now it is estimated at more than $ 20 thousand. Other cryptocurrencies have shown a price of hundreds or thousands of times. This gave an occasion to compare the cryptocurrency market with a bubble that will certainly burst and investors will remain with nothing.

To begin with, we will figure out what, in fact, a bubble? This is an economic cycle of an asset, characterized by an unstable increase in its market value. One of the first examples of such a bubble is the increase in the price of tulips in the Netherlands in the 17th century. Then their value took off ten times, and after the collapse it did not recover anymore. The bubble of bubbles of the dotcomes is also known at the beginning of this century. Then in a short time the cost of Internet companies took off and abruptly collapsed.

Bitcoin and other cryptocurrencies have existed for more than ten years. During this time, they passed several cycles when their cost grew and decreased. However, after all previous falls, Bitcoin updated price records. Together with him, all cryptocurrencies grew.

As analysts explain, cryptocurrency fluctuations form a model typical of young markets. They expect that over time, assets will grow and fall with less fluctuations, and the time between these cycles will increase. That is, the cryptocurrency market will become more stable and predictable.

Myth 2: Cryptocurrency has no real value

There is an opinion that cryptocurrencies, in fact, are not worth anything, and their trade is air trade. Therefore, they say, over time, even 1 dollar will not give for bitcoin.

If we talk about bitcoin, then its value is provided by several factors. This is an opportunity to transfer funds to any part of the world, protection against falsifications, fixed commission commissions. Also, unlike traditional money that the Central Bank can print in any volume, the number of bitcoins is limited to 21 million. It is impossible to make them more. That is why bitcoin is often compared with gold, which cannot be printed by order of the Central Bank.

Other cryptocurrencies also have a practical benefit. For example, providing smart contracts, confidentiality, lending, use on game platforms, etc. Of course, there are a large number of coins, which, indeed, have no practical benefit. Therefore, before buying a particular token, you should find out why it was created.

Myth 3: cryptocurrencies are a fashion, and it will pass soon

Several decades ago, computers and email were only interesting to a very limited number of technology lovers. When Steve Jobs said that soon computers would be in every house, he was surprised to ask: “Why are they needed there?”

The same thing is happening with cryptocurrencies now. While they are used by a relatively limited number of people. But modern cryptocurrencies create ecosystems, which, according to analysts, will continue to develop, and more and more practical applications will appear for them.

Interest in decentralized financial programs is growing, which are safer, more reliable and cheaper than current systems. Technical giants explore the methods of merging the real and digital worlds using blockchain technology as a building block for this. States reflect on the creation of their own cryptocurrencies. Therefore, virtual assets, of course, will evolve and change, but will remain along with the technologies on which they are based.

Myth 4: Buying cryptocurrency is difficult

Many potential investors from buying crypto acts restraint the lack of experience. Since this is a new and technological tool, it may seem difficult. In fact, you can invest through special exchanges, in mobile applications or on other trading floors. The registration procedure for them is usually no more complicated than, for example, creating an account on a social network or in an online store.

As a rule, large exchanges are asked to confirm the identity. To do this, upload photos of documents. This is the requirement of world regulators that helps make exchanges safer. However, those who value anonymity can also find sites where there are no such requirements.

The process of buying cryptocurrency itself is also simple. To do this, you can replenish your account and make purchases or pay from your card directly each purchase of crypts. In terms of complexity, this procedure can be compared with the replenishment of a mobile phone or the purchase of goods.

Therefore, today the anonymous platforms are gaining particular popularity. One of these is the exchange mexc.com/. Data on users are not stored here, and only the email address will be required for registration.

Myth 5: To buy cryptocurrency, you need a lot of money

Most people learned about the existence of cryptocurrency, when the price of bitcoin reached tens of thousands of dollars, which would seem to immediately cut off investors with a budget of several hundred.

In fact, all services allow you to buy a share of bitcoin or other cryptocurrencies. The minimum amount for which you can buy cryptocurrency can differ on different sites, but usually this is only a few hundred hryvnias.

Having bought a share of bitcoin or other cryptocurrencies, you will also earn on their growth, like those who operate on tens of thousands of dollars. If the asset will rise in price, for example, twice, then the investment of everyone who holds it will double. The same thing will happen in the case of a reduction in the crypto acting.