Once considered an obscure digital anomaly, crypto now takes center stage as one of the most popular financial topics. With that in mind, much like anything that becomes mainstream, there are a lot of opinions sewn with misinformation about the cryptocurrency market. Let’s take a look at the journey crypto has made from its humble beginnings to global popularity.
Cryptocurrency Is Born
In less than a decade, the views on crypto have shifted in many directions. From a “pirates paradise” to an “intangible financial ledger” to “genius technology” to a “legitimate form of money”… it’s safe to say it has received a lot of mixed reviews.
Starting in the mid-nineties, encrypted digital transactions were made possible but left behind some loopholes and complications. Moving forward to 2009, the first Bitcoin was mined paving the way for the first peer-to-peer electronic cash system. After some time, a Bitcoin market was formed as more and more people were purchasing Bitcoin. Other networks were created to birth other cryptos and the cryptocurrency market took hold.
Much like anything new breaking the boundaries of what we already know, crypto received – and still receives – some backlash. This is due mostly to a lack of education on the subject, misinformation, or actual events that shook the reliability of crypto altogether.
It only makes sense though. Crypto didn’t really come out of the gate strong. One of the first crypto transactions was made on the deep web for some suspicious trades. This coupled with the fact that crypto holds to the value of anonymity only caused speculation. How will we know who is making transactions? What kinds of transactions are being made? Is anything about crypto legitimate?
With time, crypto gained more positive traction. Blockchain technologies improved, a consensus was formed, transaction verification software was developed, crypto market exchanges became stronger, smart contracts allowed for terms to be established between transactional parties, and the peer-to-peer web expanded. The list goes on, but from what was once considered “money invented out of thin air”, crypto has a very strong foundation.
This foundation has only grown stronger in grand part thanks to educative outlets. Those who are well-versed in the subject or invest time investigating share their knowledge through various media outlets. From blogs to podcasts, to YouTube, to live debates – accessing quality information about crypto is out there. Clearing up doubts or enticing curiosity is not hard to do.
And much like all the top quality knowledge about crypto is accessible, so is poor information. The hardest part of crypto misinformation is knowing what information to trust. It might seem hard, but for starters, trusting those who have power or financial interest in it not circulating is probably not the safest bet. As it is a revolutionary decentralized market entering an established mainstream largely run by centralized ethics or interest-induced media outlets – it’s no surprise that some institutions choose to push for a negative story about crypto.
Many headlines and governments narrate crypto through ignorance and fear. In fairness, crypto does face volatility and it’s always great to look into the pros and cons of all markets; but what’s not fair are uneducated spokespersons making claims on behalf of crypto in an attempt to gain something from it.
Misinformation and Fraud
Crypto not only suffers misinformation from major media outlets, but also behind the scenes. Being aware of scams, phishing, or fraud is extremely important. When anything reaches a certain level of popularity and wealth, of course, some sly minds out there are waiting to take advantage. Although blockchain technology is impenetrable, human error and gullibility are not.
Taking information from any unestablished party offering something in return for your time, money, or personal information should not be trusted. Taking advantage of market ignorance is key for these kinds of scams. Take information from those who are established with a broad audience and don’t personally gain from it in return for something else.
As the years go on, crypto gains more popularity. Yes, markets take off to the moon sometimes and plummet back to earth at other times – but it’s not the only influential factor about crypto anymore. It’s being adopted more and more as a form of money. Making international transactions, large sum transfers, or simply paying for everyday goods and services is where it’s really exploding. And not only that but also smart contracts (and tokens) allow businesses to create specific terms for transactions. It’s these types of technologies that bring crypto from behind the scenes as a complex digital currency to center stage representing the future of finance and economies as we know them.