For some, crypto has been a relevant topic for over a decade, and for others, it’s brand new. No matter what, it’s inevitably hard to know if you’re coming across truths or myths. Let’s go through and debunk the three most common crypto myths.
Crypto is only used for illegal activity.
Although the first crypto transaction was on a dark website, crypto is now known for its ability to overcome traditional banking problems. Blockchain analytics have proven that illegal activity in cryptocurrency is no more than crimes committed with traditional banking and currencies. People and institutions involved in crypto require the same regulatory standards as other financial institutions, and are subject to all Bank Secrecy Act, Anti-Money Laundering (AML), and Know Your Customer (KYC) regulatory procedures. And if that’s not enough, digital currency companies are independently audited by regulators.
Crypto is unsustainable.
There are claims that crypto maintenance is a waste of energy and deteriorates the environment. Energy consumed by blockchain technology could get out of hand, but steps are being taken to upgrade networks to reduce energy consumption. One example is Ethereum which is upgrading its network this year to reduce 99% of energy consumption.
Crypto has no backbone.
Some people spread the rumor that crypto isn’t backed by anything and has no hedgeable value. But if you compare it to the U.S. dollar, it left the gold standard in 1971 and also isn’t pegged to anything but the “full faith and credit of the United States government.” And sure, at some point that was fine but it doesn’t mean much anywhere now that the treasury can simply print money whenever. Trading value for goods has been around long before governments backed it with something. Currency only needs people and institutions to believe it’s worth something.
There is no need to give into crypto myths. It’s a new and evolving industry eager to overcome any unfavorable issues. Some other myths you may have heard are up to discussion or more complex explanations, and that is for another article. Whether you are looking to invest in crypto or start accepting crypto payments, there is no need to worry about the rumors. Learn more by visiting us at ForumPay today! And don’t forget to follow us on Instagram and Twitter for more on all things crypto!