There are a lot of cryptocurrencies in the market at present but in the mind of the people that cryptocurrency is a trap. They think that cryptocurrency is a global scam done by hackers and people have many myths about cryptocurrency but what is the truth
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1. Cryptocurrencies have no value
Detractors of digital currencies often say that they have no intrinsic value and that they are not backed by another currency or a precious metal. But the truth is that they are exchanged on a daily basis and used as an established currency, so they clearly have a real value determined by the market. The important thing is that you can inform yourself and evaluate what to invest in before making a decision.
2. Cryptocurrencies are illegal and are used to launder money
They are a currency that, although not regulated in many countries, is legal. They are estimated to be unlikely to be used to launder large amounts of money, as cash remains a favorite with criminals.
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In addition, platforms to invest in cryptocurrencies are regulated in many countries and operate under regulations aimed at avoiding this crime.
3. Cryptocurrencies can be easily counterfeited
The cryptocurrencies operate with their own codes and, because of the nature of blockchain technology is almost impossible to duplicate transactions or produce fake cryptocurrencies. From this point of view, it is safe to invest in bitcoin.
4. Bitcoin is a Ponzi or pyramid scheme
Cryptocurrencies are a technology that serves as a store of superior value or as a safe and uncensored transfer protocol. In Satoshi Nakamoto's original Bitcoin proposal, there is never any talk of any ROI when trading digital currency. They are only virtual currencies, not business models.
5. Investing in Bitcoin and other cryptocurrencies is bad business
According to the BBC , in January 2009 Bitcoin was worth less than a dollar, in 2017 it was close to US $ 20,000, the following year it fell to US $ 3,200, in 2019 it rose to US $ 13,800 and in January 2020 it was around $ 9,000. Bitcoin has a high volatility due to different factors, but it shows a very high profitability since its creation. In that sense, they can become a business if you feel comfortable taking risks; the key is that you do the proper market analysis and carefully study the behavior of the cryptocurrency.
6. Platforms to invest in cryptocurrencies steal from their users
You have to operate on platforms of recognized reputation, which offer you guarantees and good support. That way it is safe to invest in Bitcoin and other cryptocurrencies.
Cryptocurrencies may one day replace cash and credit cards, but for now, all existing digital currencies are considered to be only worth a small percentage of the world's physical money. What you can aim for is to invest in Bitcoin as a form of diversification or to generate capital gains in both the long and short term.
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Remember to research your options very well and consider various investment strategies , either for times of uncertainty or economic stability.
