Common Crypto Myths that need to be Debunked

Even today, where cryptos have become rather common, certain crypto myths are very prevalent and need to be debunked. The following happens to be the most common crypto myths that you will ever hear about when you explore the cryptocurrency space. Read on to learn more about these popular myths.

Digital Crypto Currencies are not Good for the Environment

This is one of the very common myths that people generally have about crypto currencies these days!

There is the reason for some concern regarding the impact of digital cryptocurrencies on the natural environment. As cryptos such as ether and bitcoin have taken off, the frequency of mining operations have shot up as well all around the world. All of the individual mining rigs need a lot of computational power, and this, needs a massive volume of electricity.

Here, what is extremely important for you to keep in mind is that the mining value for a crypto nearly all the time outweighs the real-world expense that is needed in order to fulfill that mining operation. What is more, majority of the cryptos, such as bitcoin, have set hard upper caps on the total crypto tokens that can be effectively mined. Post this stage, folks will no longer be able to mine for new crypto coins or tokens and the expenses of the computational power needed for mining that cryptocurrency will be reduced to a considerable extent. And do not forget that the modern banking and financial system also need a whole lot of electricity to run on a daily basis, from computer servers to office lights to asset exchanges and electronic payments network.

Digital cryptocurrencies are Mainly Used for Illicit Activities

A very old and, and rather unfortunate myths regarding digital cryptos is that they are mainly used for illicit activities. While you should know that it is true that digital cryptocurrencies have been used by folks with shady goals in mind as well as by several notorious criminal enterprises, the same can be said for fiat currencies too. One of the key reasons behind this common crypto myth is the anonymity that is vital to most of the cryptos.  As the first key digital cryptocurrency, bitcoin became quite famous in black markets such as the Silk Road.

While it is also true that elements of bitcoin (also including the anonymity it offers) might have been very tempting to criminals around the world who are conducting illegal businesses in that and another similar market, it is important to keep in mind that it was the very transactions themselves that were illicit and not the cryptos. Criminals can and mainly do make use of fiat currency for their several activities as well. Research that has assessed the trends of the flow of money on the Bitcoin network has shown that while there was a certain time period where most activity related to Bitcoin was primarily in gambling avenues and black markets, today illegal activities have declined to a very tiny fraction of the total overall flows.

Cryptos are not secure

As crypto currencies have gained traction, there have been many thefts and scams around the world. In several cases, currency exchanges themselves were the victims of such attacks. In other scenarios, criminals cashed in on vulnerabilities in crypto wallets and other elements of the crypto space. Investors who worry regarding the security of digital crypto assets ought to keep in mind that it is likely for thefts and hacks to take place. What is crucial to comprehend is that the mining and cryptography network used in blockchain networks are robust to all attack, single failure points like the website of a crypto exchange or a single user are prone to bad actors.

Yet there happen to be many ways that investors can use to alter their behavior to safeguard their holdings in a more efficient manner.