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Filter the Fake News About Crypto and Blockchainโ€‚by@aashnasadhan14

Filter the Fake News About Crypto and Blockchain

Aashna Sadhan Hacker Noon profile picture

Aashna Sadhan

If you're looking to make an investment or construct an asset portfolio, cryptocurrency has become a popular topic of debate.

However, many myths and falsehoods have emerged, which are being used to distort people's perceptions about crypto & blockchain.

The naysayers about crypto will continue to exist. However, rather than believing everything found on the internet, one should verify all facts before drawing conclusions.

Below are 5 crypto myths that shouldn't be taken at face value.

1. "Many Cryptocurrencies are counterfeit."

When you hear the word "cryptocurrency," you're probably thinking of "cryptography," which is a procedure that makes it impossible to counterfeit Bitcoin and other digital currencies.

It is difficult to "double-spend," that is, fraudulently generate more than one transaction with a single operation.

2. "Cryptocurrencies will make you rich quickly."

You may have come across adverts and bogus finance "gurus" on the internet who promote their products by offering a "get-rich-quick" program to the general public to attract customers.

People are more likely to believe such charlatans than they are to evaluate the risks involved with cryptocurrency.

Don't allow a random stranger to handle your hard-earned money, and don't let anyone handle your digital assets when it comes to investing.

3. "Cryptocurrencies are prohibited under the law."

The anonymity provided by blockchain transactions plays a significant role in perpetuating this illusion.

As crypto transactions do not contain any "finger information" that can be traced back to a single individual, criminals are becoming increasingly drawn to this digital cash.

However, this does not rule out the possibility of someone tracking them down using the transaction data.

While blockchain transactions may not carry individual information, they do contain the user's wallet address, which can be linked to a real-world identity if more investigation is done.

4. "Cryptocurrencies aren't a safe investment."

Many people have expressed concerns about the security and safety of cryptocurrency transactions, which is understandable given the lack of organizations or authorities to turn to in the event of fraud.

However, the reality is that crypto transactions are more secure than traditional fiat currency records are.

In the case of cryptocurrencies, the entries are recorded in the form of blocks in a central ledger known as a blockchain, which is a distributed ledger system.

Hacking a blockchain is extremely hard due to the immutability of the blocks, which means that no one can edit a block after it has been created.

5. "Blockchain is just for crypto."

There has been a great deal of discussion regarding the applications of blockchain technology, which supports crypto.

The consensus among some experts is that blockchain has failed to demonstrate any practical application and that bitcoin is the only financial instrument to have achieved some level of popularity.

The reality is that technological advancements in the blockchain industry are occurring at a rapid rate. Smart contracts on the blockchain, for example, can be used to store a contract between a lender and a house loan beneficiary. With blockchain technology, there are countless applications and use cases available, ranging from DeFi to NFT.

The above were a few major myths surrounding crypto & blockchain that you shouldnโ€™t believe before verifying the facts yourself.

Disclaimer: The opinions in this article belong to the author alone and should not be considered investment advice.