What do you should know about?
Unlike gold or money, cryptocurrency has become a means of settlement in just a few years. Over time, more and more people began to be interested in it, and it is quite logical that many of them didn't have confidence in cryptocurrency right away. Like everything new, the sphere of digital money has quickly become overgrown with various myths and theories. And even after repeated refutations, there are still people who believe in many conjectures. Let's try to sort out some myths. Maybe you still believe in some of them?
1. It's too late to enter the crypto market. I should have done it earlier
Presumably, this opinion was formed because we all heard before: "Here, I invested in cryptocurrency a few years ago and forgot about it. I checked my e-wallet for a while, and it already has a fortune on it."
After such words, many people, especially beginners, start to believe that the value of the cryptocurrency has reached its maximum, but it continues to grow. Significant doubts also appear due to the constantly changing behavior of prices, which scares off inexperienced people and worries those who have been on the market for a long time.
A few years ago, cryptocurrency had a lot of risky enthusiasts. Today, experts invest money in projects, in modern UX, and their audience's education so that everyone can deal with digital currency in the shortest possible time and find the tools that suit them.
2. Bitcoin, like the rest of the cryptocurrency, is a financial pyramid & fraud
The principle of the pyramid scheme: its participants make a profit at the expense of people who came later. In this system, there are always parties interested in cheating. At the same time, the creators of these pyramids always guarantee people a high income. Crypto business isn't a pyramid, and it's a system running on a decentralized blockchain base. On behalf of the cryptocurrency, no one can guarantee you a considerable income. Yes, some forecasters can say that the value of some coin or token will be higher than $20,000, and it's up to you to believe it or not. Remember: a cryptocurrency expert isn't its developer, so you shouldn't take the words of an expert seriously.
Cryptocurrency is based on the blockchain system, which is the most reliable technology for money and information transfers.
At the heart of the pyramid scheme is a person/group of people who are hungry for profit.
The cryptocurrency's heart is a blockchain system, the most reliable technology for carrying out monetary transactions and transmitting the information.
3. Cryptocurrency promotes the sperad of weapons, drugs and crime
The address of the crypto wallet is just a set of characters, due to which criminals achieve absolute anonymity. This is the opinion of people who don't understand the principle of the blockchain. After the advent of cryptocurrency, the number of illegal transactions was extremely high in the first years. But every year, the blockchain has been studied better and better. Now almost all crypto sites have registration and verification processes.
Therefore, scammers prefer to use ordinary cash bills. According to China and the UN Office on Drugs and Crime, for every dollar in bitcoin spent on the Darknet, there is approximately $800 laundered through fiat money.
In addition, nowadays many banks (Goldman Sachs, JPMorgan) allow their clients to work with digital money, which indicates trust and high user demand for cryptocurrency to save funds.
Therefore, it’s impossible to treat cryptocurrency negatively just because a part of the percentage of users use it for criminal purposes.
4. The first miners received too much reward
Many say that the first holders of coins bought them cheap. But this isn't so, and they received a kind of "reward" for taking a risk and investing in a new project either with time or money, thereby developing it. Using the example of bitcoin, the more people joined the project, the easier and faster the next price milestone was overcome. The invested resources over time only strengthened the position of the currency.
Therefore, the answer to the question: "Do early miners deserve what they have?"-is unequivocal: "Yes!". Arguing here is the same as saying that the first investors of companies or people buying shares at the initial public offering receive too high a profit.
5. Cryptocurrency has no intrinsic value
This statement is loved very much by critics of digital currency. They believe that cryptocurrency's price isn't conditioned by anything, and people buy it only to sell it more expensive after a while; that is, they speculate on the market.
Let's take a look at the facts and realize that they are wrong:
When mining, certain funds are spent on mining coins. Costs vary depending on various factors: purchase and maintenance of equipment, rental of premises, electricity costs. If we take all the average values, we will get the actual cost of producing one coin/token without considering market relations (supply and demand).
Current fiat currencies have no intrinsic value. As a rule, the exchange rate of modern currencies depends on government policy, global financial stability, supply and demand. Therefore, every coin, including digital, is subject to price fluctuations.
Conventional currency has an inflationary model, so they all lose value. Cryptocurrency, on the contrary, is built deflationary. The number of the first digital currency is limited to 21 million - before the last coin is mined, every four years, the number of coin receipts to the market will be reduced by two. This process is called halving.
Based on the points above, we can even make a bold conclusion that cryptocurrency has a more excellent intrinsic value than conventional fiat money.
6. Storibg crypto assests on any Third - Party service = Full ownership of them
Some holders of cryptomonads are sure that they are the rightful owners of assets immediately after purchasing them on a crypto exchange or through an online wallet. This is a prevalent misconception. While the acquired assets are stored on a third-party service, they don’t belong entirely to the user.
Hacker attacks, exit scams, server failures and many more incidents, after which you can forget about your money. And only if the user exclusively has access to private keys he can be 100% sure that he is the holder of the cryptocurrency. To do this, you can use a non-custodial wallet, "Venera Wallet". With this wallet, you can be sure that the access keys are only with you because the system on which the wallet is created is decentralized.
Conclusion
A few years ago, crypto traders introduced a stock to check exchanges. Proof-of-Key is held on January 3, and within the framework of this company, traders simultaneously withdraw their assets from the exchange to make sure that the assets belong to them. The platform is working in good faith.
Due to such a load, many sites, even the most famous ones, may experience technical problems. This happened in 2019 with the Bitfinex and Coinbase crypto exchanges, but they could solve the problem. But in the case of the Singapore exchange BiteBTC, everything turned out differently. After a quick withdrawal of funds, it turned out that the company did not have enough cryptocurrency, as a result of which the exchange closed after six months.
We conclude that before giving anyone access to your assets, be sure to read the policy for storing private keys.
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