Bitcoin may have started the whole thing, but now, thanks to an upsurge in growth and popularity, there are so many cryptocurrencies. With all the numbers and information, there’s bound to be misinformation regarding these digital currencies.

Are cryptocurrencies illegitimate? Are they secure enough for transactions? These are some of the questions that have led to myths among inexperienced crypto enthusiasts.

This article will explore the four most common cryptocurrency myths, their truth, and other pointers to help you.

Myth 1. Cryptocurrencies Are a Scam

Cryptocurrencies like Bitcoin, Ethereum, and USDT have become accepted means of exchange for many retailers and merchants. There’s even talk of them replacing fiat money in the not-too-distant future.

However, many people still struggle to accept them and often refer to them as scams. Some bad people try to create scams and tricks to steal crypto from unsuspecting victims. That’s why the government and private firms are working to find ways to regulate transactions to keep you and other crypto investors safe.

Cryptocurrencies are not scams in themselves. Thieves try to take advantage of

Myth 2: Cryptocurrencies Have no Value

This myth is often pushed by people who lack a basic understanding of value, a subjective concept. For example, upon its launch in 2009, Bitcoin was valued at thousandths of a cent.

However, its popularity continued to rise, leading to many highs after 2020, including over $70,000. Then there’s Ethereum, with its value reflected in utility and potential to integrate with other technologies and blockchain transactions.

Generally, cryptocurrencies have demonstrated their value in many spheres, with many individuals and companies holding them for future gains.

Myth 3 Cryptocurrencies Lack Security

This myth has been repeatedly debunked because of the significant technology behind cryptocurrency: blockchain. It is a database secured with encryption technology that is very difficult to break.

When your transactions are imputed into the blocks in the blockchain, previous transaction information is recorded in the new blocks and encrypted. With all the encryption and protection of your data, it’s challenging for hackers to steal your cryptocurrency.

The insecurities mostly come from how you access and store crypto, such as the crypto wallets or centralized exchanges that facilitate transactions. Ensure you use the proper platforms and software to store and access your assets so they’re not hacked or tampered with.

Myth 4. Cryptocurrencies Are Bad for the Environment

Many people and companies are concerned about digital currencies’ impact on the environment. Some cryptocurrencies use a consensus mechanism backed by computational power and significant energy to verify and validate transactions. Being more popular than the others, Bitcoin has seen large mining operations emerge to take advantage of its rise in popularity in the crypto-mining market.

Each Bitcoin mining farm requires massive amounts of energy to run the rigs, so it’s normal to imagine that the environment would suffer. However, most mining operations use clean energies, which are non-intrusive for validation.

With clean energy and consistent efforts by mining operators to reduce carbon footprints, you have nothing to fear about the cryptocurrencies in the environment.

Conclusion

These are common myths that the crypto world has continued to debunk with valid truth and demonstrations. If you need help trusting platforms, researching before investing will help avoid trouble.

Cryptocurrencies like Bitcoin, Ethereum, and others carry real value. However, caution is critical so that you’re always involved in secure transactions, especially when you follow proper instructions to keep you safe from scammers and targeted schemes.