7 Most Common Misconceptions People Have About Cryptocurrencies – 2024 Guide

Although cryptocurrencies are not a new thing, there are, however, people who don’t know a lot about them and find them difficult and unnecessary. The fact is that learning about them is not difficult, and it could make your life a lot simpler. Cryptocurrencies are all around us, and they will unquestionably be here for some time, so working with them is something normal. Learning about them can help with many misconceptions that people usually have, and if you are interested in this subject, check telemediaonline.co.uk and find some useful information. In this text, some most popular misconceptions are going to be mentioned.

1. Blockchain is the same thing as Bitcoin

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The very first thing that comes to someone’s mind when he hears the word cryptocurrencies is Bitcoin. Numerous people are convinced that Blockchain and Bitcoin are identical things, but it is not a fact. Bitcoin is a cryptocurrency, and Blockchain is a technology, and that is the first difference. Using Bitcoin is the equivalent of using actual money since it can be transferred from one address to another in the same way as money in the bank. Peer-to-peer transactions are possible by using Blockchain technology, and every one of them is recording on distributed books throughout the network.

2. Cryptocurrencies don’t have any connections with Blockchain

Since Blockchain technology can be used for many things, many people think that it is separate from cryptocurrencies. Well, that is not true because cryptocurrencies cannot exist without this technology. Every coin is existing just because of this technology, and it is the product of it. Blockchains are enabling coins as rewards for mining or tokens in games, and without them, it cannot be possible.

3. Substituting the real money

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Numerous people are considering paper money as the only method of paying. For them, even credit cards are not a good thing to use. It may be like that because it is much easier and more trustworthy to see the quantity of cash you are spending, and it is possible only if you have it in the hands. Fortunately, numerous people are accepting credit cards, and they are engaged in cryptocurrencies too. This misconception doesn’t make sense since the bills are with us for a long period, and it is almost impossible to replace it.

4. Cryptocurrencies are anonymous and tax-free

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During a cryptocurrency transaction, it is possible to apply a pseudonym instead of the actual name, and it is not necessary to visit the bank. Because of that, countless people think that those activities are secret, and they are tax-free, but it is not a fact. Every transaction can be easily tracked because it is working with the wallet address. After finding that address, finding the actual name is simple, so the conclusion is that it is not completely anonymous. The taxes depend on the country and can be different for various actions, but almost every country has them. Taxes are not something that everyone likes, but it can show you that working with cryptocurrencies is legal.

5. Created for criminal and illegal transactions

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Innovative things could be terrifying, and numerous people are bypassing them instead of learning about them. Every change about the system of paying is difficult to acquire, and credit cards have also gone through that. People love paper money because it is constantly possible to see how much is left. Luckily, credit cards are common now and have many users, but it is not the fact with cryptocurrencies because they are more innovative. The main culprit for this is the mistaken belief that these currencies were created for criminals and unauthorized transactions. Well, criminals are not something unusual, and the fact is that they can practice every way of payment, and it is not logical to produce a new currency just for them. No one can say that they are not working with this payment method, but the fact is that they are using bills and cards too. Criminal actions won’t stop if people are bypassing this way of earning, and there is not anything illegal here. Indeed, some countries are not accepting cryptocurrencies yet, but the fact is that it will change soon since they are becoming more popular every day.

6. It is confusing

Getting confused by a creating process is almost sure, but it is not something that you need at all. For some basic usage, it is enough to learn how to trade, buy, or just have cryptocurrencies. In the end, it is like online working with actual money. Many people have mastered this long ago, so this is not a new thing. It is simple to learn, and it can be helpful in the near future. It is normal to find the new things complex, but it shouldn’t be since it is not necessary to be a specialist for cryptocurrencies to use them.

7. Easy for hacking

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People are willing to trust online stuff, and many of them recognize it as unsafe. Well, it is not always the case since the online platforms are used by famous banks, so safety is assured. The identical thing is with cryptocurrencies because similar platforms are used, and security is crucial. It is almost impossible to hack them, and it is unnecessary to be worried about funds and losing them. Try not to give your data to unknown people, and always use a safe platform because your mistake can be the only way to hack the system.

It is natural to create many misconceptions about the things we don’t know well. Try to trust new ideas and learn about them enough that you can handle them. This can be the best way to prepare yourself for the future since cryptocurrencies are continuing to be there. Try to be open to future things since, in fact, they are already here, and avoiding them is not a good idea since they are here to make life easier for us.

Cumbo Boris
Cumbo Boris

My name is Boris Cumbo. I am a content writer and expert in the fields of film, music, celebrities, and lifestyle. My aim is to provide great and valuable information on the topics I am writing in order that readers get relevant content. I am the father of 1 child, and I like to spend all my free time with my family.