Cryptocurrency Myths

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Today we are going to bust some myths about cryptocurrency. Many people are under the impression that it is either too late to invest, too dangerous to invest, too difficult to invest, or that the market is about to collapse. None of the myths are of course true, but let us have a look at four of them to make sure.

The logo of Bitcoin (virtual currency) is pictured on a door in an illustration picture taken at La Maison du Bitcoin in Paris July 11, 2014. REUTERS/Benoit Tessier

Is it too late to invest?

The value of different cryptocurrency tokens has been going up and down for quite a while now. Many of the most popular tokens, like Bitcoin and Ethereum, have been on a steady incline overall. This has led many to believe that they have missed to the chance to invest, as the tokens are worth too much now. However, we just need to look at the rise of Bitcoin to almost $20,000 in December 2017, just for it to crash and burn. Now it is has climbed back up from $6,000 to around $8,000. Had you invested in early 2018, you would have many a good profit. Even if the most popular tokens are too expensive to invest in, there are 1,500 different cryptocurrency tokens out there — and counting. There is ample opportunity to invest in many new and exciting opportunities.

It technical knowledge required?

There is a common misconception that in-depth technical knowledge is required in order to invest in cryptocurrency. Of course, in order to be able to work as a developer on a blockchain project, you would need this kind of knowledge. But in order to trade in the tokens themselves, this level of knowledge is not required. Just like you are able to confidently trade in Google shares without understanding their search engine algorithm, you are able to trade in cryptocurrency without understanding cryptography. This does not mean that you can enter the market with a blindfold. It is still important to read up on different tokens and keep an eye on the market movements.

Is the market about to collapse?

Many people in the current financial establishment have said bad things about cryptocurrency. The CEO of JPMorgan has for example called Bitcoin a fraud last year. This year, the very same JPMorgan was very enthusiastic about blockchain technology. The facts about cryptocurrency have not changed, but the opinions of many people have. Of course, there have been scammers and criminals in the cryptocurrency space, just like there are in any other industry. But since governments around the world have begun to impose regulations, they have more or less been weeded out. And as more sector, like health care, are beginning to explore blockchain, it will only become a more popular phenomenon.

Is cryptocurrency dangerous?

As mentioned, there have been some scandals involving the hacking of cryptocurrency exchanges. This has put some people off of trading due to security concerns. Again, these securities have already been addressed. It is not very difficult for traders to protect their assets if they ensure that no one else has access to the key to their digital wallet. It is very much like keeping the PIN number for your credit card safe, to use an analogy. Even if people are concerned about the safety of using a digital wallet, there is always the option of cold store their cryptocurrency tokens on an offline hard drive.

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.