Your non-coiner friends do hate and doubt crypto, here I disprove 15 of the stupid things they say.
-Myth 01: Crypto is only used by criminals.
New technologies are first used by criminals, always. This was the case with cellphones, cars and crypto. New technology are a criminal’s edge for the short laps of time before becoming widespread.
-Myth 02: Crypto is completely unregulated.
Most crypto exchanges, the reputable and reliable ones, through the world are complying with financial and criminal laws within the jurisdiction of their head-office. These exchanges require thorough KYC from individuals and firms using their platform along with stringent Anti Money-Laundering measures.
-Myth 03: Miners could alter Bitcoin’s properties for their own gain.
They do not have the ability to alter the fundamental properties of Bitcoin for their own profits as they would need the equivalent power of many nuclear power plants to change a block for their own profit.
Bitcoin miners play a crucial role in securing the Bitcoin network by confirming and adding transactions to the blockchain through a process called mining which relies on heavy computations with hundreds or thousands of computers.
Simply, the computers compete to solve complex mathematical puzzles, and the first one to solve it gets the right to add a new block to the blockchain and receives a BTC reward. This requires significant computational power, and altering the blockchain would require an enormous amount of computational resources. The decentralized nature of the Bitcoin network makes it resistant to tampering. Once a block is added to the blockchain, it is almost impossible, extremely difficult to change.
-Myth 04: There’s no way to guard against hacks.
Exchanges and applications can get hacked. Crypto stored in your secured wallet are not hackable, make sure to save your mnemonic list / seed-phrase.
-Myth 05: There’s no way to prevent criminals from using crypto.
Is there a way to prevent criminals from using US Dollars or Euros ??
What did criminals use before crypto….? US Dollars
-Myth 06: Cryptocurrency is all scams.
Cryptocurrency, especially BTC has been used as store of value, a protection against inflation by many and for many years. Others are using crypto for remittance payments to send money back home while creators are using crypto to tokenize their artworks and get paid. Crypto like fiat money has been used for positive things and scams.
-Myth 07: Early crypto adopters receive disproportionate rewards.
Yes, disproportionate rewards for disproportionate willingness to invest in something new. The same could be said for early investors in Google, Apple or Microsoft.
-Myth 08: Is bad that Lost Bitcoin can’t be replaced.
Given the limited supply of Bitcoin, it is proven that 30% has been lost forever by people who lost access to their wallets. Lost Bitcoin are not worth replacing given that the supply is hard-capped and Satoshi Nakamoto has written that “Lost coins only make everyone else’s worth slightly more. Think of it as a donation to everyone.”
-Myth 09: CBDCs will make existing cryptocurrencies obsolete.
CBDCs’ supply will be modifiable by the issuing authorities at their own discretion which is antagonist to hard-capped supply crypto like Bitcoin. Bitcoin’s reasons of being is to be owned and controlled by each user in a peer-to-peer fashion without centralization like the CBDCs.
-Myth 10: All cryptocurrencies are alike.
Cryptocurrencies do differ in their consensus mechanisms, tokennomics (supply, locking, release), use-cases and privacy features.
No, not all cryptocurrencies are alike. Cryptocurrencies vary significantly in terms of their underlying technology, purpose, features, and use cases. Use cases do vary: while some cryptocurrencies are used as a value transfer, internet money, others are relied on as ownership tokens or smart-contract facilitators and more…
-Myth 11: Crypto is a fad.
Cambridge dictionary gives the following definition for fad: ” a style or activity that suddenly becomes popular but which usually does not stay popular for very long“. A fad usually last months or a few years, BTC has been active and unaltered for more than 10 years and crypto users keep growing around the globe, all the contrary of a fad.
-Myth 12: Crypto is anonymous and untraceable.
Crypto is pseudonymous which means a crypto address can always be tracked through a crypto transactions’ ledger. With thorough on-chain analysis, authorities have already retraced nefarious users through deep investigations linking IP addresses to crypto addresses. These investigations span on two domains: internet traffic and on-chain analysis.
Cryptocurrencies offer a degree of pseudonymity, the level of traceability depends on factors such as the cryptocurrency that is used, user behavior with internet, traceability of address IP and crypto activity, and the tools available for analysis. Users interested in privacy should be aware of best practices, such as avoiding address reuse and considering the use of privacy-focused cryptocurrencies like Monero XMR. Achieving complete anonymity in cryptocurrency transactions can be challenging today.
-Myth 13: Investing in crypto is gambling.
Investing in cryptocurrencies can feel a bit like walking into a casino sometimes, right? It has its risks and uncertainties, and prices can be pretty volatile. But unlike pure gambling, investing in cryptocurrencies involves more than just chance.
See, with crypto, you can research the projects, understand their technology, and assess their potential. It’s more about making informed decisions based on market trends, news, and the fundamentals of each coin. Of course, there’s still a level of unpredictability, but it’s not all luck.
Just like any investment, it’s important to diversify, not put in more than you can afford to lose, and stay updated on what’s happening in the crypto world. It’s a rollercoaster for sure, but with some strategy, it can be a calculated risk rather than a gamble.
-Myth 14: Crypto’s volatility makes it too unreliable to be a store of value.
The ups and downs in crypto prices can be intense, right? When it comes to being a store of value, it’s an interesting debate. On one hand, some people love the potential for crazy returns, but on the flip side, the volatility can make it nerve-wracking for those looking for stability. Fortunately, BTC has been a steady and strong store of value throughout its history, past is not a a guarantee of the future but a trustworthy indicator.
Crypto’s relatively young compared to traditional stores of value like gold or fiat currencies. So, while it’s not the most stable right now, some argue that as the market matures and adoption grows, things might settle down.
-Myth 15: The principles of crypto are too complicated for consumers to understand.
Crypto can feel like a whole new language sometimes. At first, it might seem a bit complicated, but once you dive in and get the hang of the basics, it starts making more sense.
The principles behind crypto can be a bit techy and overlap with economics, but the good news is you don’t need to be a computer whiz to understand the basics. It’s more about getting the hang of terms like blockchain, wallets, and transactions. Plus, there are tons of user-friendly resources and communities out there to help break things down.
Here is a great video by a great crypto advocate and teacher, Andreas Antonopoulos, to get you started in understanding BTC, followed by a video regarding Blockchain technology, the technology enabling BTC and cryptocurrencies: