Cryptocurrencies have been in the news a lot lately. There have been many rumors and speculation about leading cryptocurrencies such as Bitcoin, Ethereum, etc. For those new to the cryptocurrency community, it can be challenging to separate fact from fiction in all of this information.
Cryptocurrency is only used to buy drugs and weapons on the dark web
This is only somewhat true. It is necessary to separate blockchain technology and cryptocurrencies. this tech has made many people's lives easier. The technology looks promising and the future of Cryptocurrency looks bright. Undoubtedly, the properties of cryptocurrencies make them convenient for illegal transactions. They provide a suitable method of obfuscating identities and transaction details. In August 2017, it was reported that Bitcoin, Monero, and Ethereum were the preferred coins to conduct dark web transactions. But many authorities are trying to solve this problem such as the Russian authorities, as part of the regulation of cryptocurrencies, have created a service that monitors the criminal component in digital currency transactions.
Cryptocurrency is another financial pyramid scheme
Think for yourself for a second, You buy cryptocurrency, put it in your electronic wallet, wait for the price of the coin to rise, sell on the rise, but on the decline, and rinse and repeat the same process so where does this look like a scam or MMM? But I will strongly recommend you always do your research before buying any cryptocurrency, study the topic, study the technology behind the project, do not hesitate to bombard holders with questions.
Cryptocurrencies are easy money
The ability of the cryptocurrency to increase 10-20 times in a year has attracted a large number of people who just want to make money buying and selling said cryptocurrencies. many are inspired by stories of sudden bitcoin millionaires. But the cryptocurrencies are considered a highly volatile asset because we can observe a wide range of price fluctuations. Just like Bitcoin has experienced several massive ups and downs. For example, at the end of 2017, a digital coin rose in price to $20,000 ATH. The following year, it fell in price by more than 80%, and by December 2018, it had fallen to $3,500.
All transactions are anonymous
Cryptocurrency is not backed by anything
For example, When compared to cash, bitcoin is nothing more than a piece of software code. The cryptocurrency owners see the number of coins and their prices in their e-wallet. How real is their condition? Bitcoin is not backed by commodities, gold, or government obligations. Critics of cryptocurrencies do not recognize the value of the cryptocurrencies when comparing them with real, that is, “secured” funds.
Cryptocurrencies are not regulated by the state and the law
The Bitcoin network is decentralized: neither the creator, the developers, nor the state can control it. Therefore, most countries are skeptical of cryptocurrencies: blockchain technology can be used as a medium for paying for illegal goods and performing illicit operations.