Cryptocurrencies are gaining global adoption as an alternative . Currently, the value of cryptocurrencies in circulation is put at $2 trillion as per data available from . While this is laudable in many regards, a ton of misinformation has remained on the trail of cryptocurrency payments.
Frankly, it is fair to imagine why there are many negative tales about cryptocurrencies. Unlike fiat, cryptocurrencies are digitally stored and said to be secured by layers of technology that are difficult to comprehend for most people.
Understanding the technology is a minor issue that people have with cryptocurrency. The bigger fish to fry is keeping the faith and trusting that there is value in this intangible asset. This seems to be the main problem plaguing the adoption of cryptocurrency payments.
Much of the misinformation surrounding cryptocurrencies has lingered on because most of the early and popular cryptocurrencies cannot be traced to a reputable person or entity. Also, most of the early commentaries that careful research findings have dispelled have not been recanted by the commentators. Many of these commentators reach a global audience, and the majority of their audience trust them blindly.
It is normal for people to doubt what they do not understand. Still, these doubts have sadly degenerated into myths that are now hampering the widespread adoption of cryptocurrency payments.
This article will examine some cryptocurrency myths and reveal the truth behind them.
What are some of the popular cryptocurrency payment myths?
Digging up cryptocurrency-related myths may never lead us to a satisfactory conclusion since most of these myths are fueled by doubts. The lack of widespread education on cryptocurrencies and their advantages also helps spread myths.
While some of the myths sound ridiculous, others have raised valid arguments about cryptocurrencies.
1. Cryptocurrencies are anonymous
This is perhaps the biggest misconception about cryptocurrencies. Many people believe that cryptocurrency payments cannot be traced; hence they are brilliant covers for suspicious financial activities.
Truth
Cryptocurrencies are not anonymous. Each cryptocurrency transaction is stored on a public network permanently. Anybody can get details about any transaction performed on any wallet, and they can track each one to their source.
2. Cryptocurrencies are safe havens for criminals
Criminals love to use cryptocurrencies to receive payment and conduct other nefarious activities. They prefer crypto payments because funds reflect instantly and payments may be sent and received anonymously. The recent ransomware hack attacks, money laundering, and black hat world activities support this myth.
Truth
This myth holds some credence, but these are not unique to cryptocurrencies alone. Fiat currencies have been used for criminal activities for many years. Today, about 80% of cryptocurrency payments are made for worthy causes. Most cryptocurrency wallet providers and exchanges have introduced Know-Your-Customer (KYC) regulations and other forms of verifications in line with the best anti-money laundering policies to counter this problem. With more government adoption, criminal activities related to cryptocurrencies can be drastically reduced.
3. Cryptocurrency is the end of fiat currencies
The propagators of this myth believe that the widespread adoption of cryptocurrencies may signal the death of fiat. This myth has given rise to several government bans on crypto payments.
Truth
Banks do not issue cryptocurrencies. They cannot also be officially adopted as a country’s currency. Cryptocurrencies will always rely on fiat to aid exchanges between cryptocurrency users.
4. Cryptocurrencies are counterfeit
This myth claims that cryptocurrencies are not unique. The belief is that cryptocurrency transactions can be repeated, canceled, or erased altogether. Shite coins and other sharp practices propel this claim.
Truth
Each cryptocurrency is unique. The digital technology system only allows users to own a piece of the currency. The cryptosystems are formed from complex structures that do not allow users to replicate their currencies. Once the system completes a transaction, users will exchange parts of their currencies. Like in every fiat currency, fake versions also exist.
5. Cryptocurrencies are illegal
Many governments are discouraging the adoption of cryptocurrencies by labeling them as illegal.
Truth
Cryptocurrencies are perfectly legal. They are a valid form of investment and payment whose activities are determined by a global market like the worldwide stock exchange. Countries like El Salvador have adopted cryptocurrencies as legal tenders. It is only a matter of time before other governments adopt cryptocurrencies as legal tenders.
6. Cryptocurrency mining impacts the environment negatively
Crypto mining consumes a lot of energy. This is because giant computers power the mining. To keep up with the energy demand, miners resort to burning many fossil fuels, which contribute to global warming.
Truth
Most crypto miners are now embracing renewable energy for their mining activities. They now mine cryptocurrencies under safe and strict environmental regulations.
7. Cryptocurrency investments are unsafe
This myth is made popular by many people who have tried some form of crypto investment and lost their money.
Truth
Cryptocurrencies are not get-rich-quick schemes. They are a somewhat viable investment opportunity. Deciding to invest in any cryptocurrency should be backed by adequate research and a solid investment plan and strategy.
8. Cryptocurrency is not real money
Traditional banks are not the only custodian of monetary value. Many years ago, fiat currencies also faced this challenge.
Truth
Cryptocurrencies are real. They allow transactions between two people without a reliable third party like the traditional banks and other third-party financial institutions. Cryptocurrency transactions do not require currency notes and payment cards. Transactions are directly hosted on a public network among users.
Conclusion
The myths stated are some of the popular myths about cryptocurrency payments. Most of these myths stem from doubts and half-truths, but we hope that we have been able to help you know the truth about these myths. Cryptocurrencies are ushering in a new lease of life. Crypto payments are a possibility today because people stuck to using cryptocurrencies despite the many misconceptions around their use in the early days.
Thankfully, with articles like this, more information about cryptocurrencies will be out there. People can be encouraged to choose cryptocurrency payment options whenever they want to use them.