Cryptocurrencies are still relatively new; so many people are hesitant to trust them. At the same time, practical applications such as paying at cryptocurrency-friendly retailers and using them as a form of payment are getting more common.  Even if you’re not interested in investing in cryptocurrencies, you might be interested in how they work— or have friends or family who are.

The following are some of the most common myths and facts about cryptocurrency, which you must be interested in.

Facts:

Following surprising facts about the Bitcoin that you must have known:-

1.  Anybody can start mining cryptocurrency:

Cryptocurrencies are based on blockchain technology. Having a blockchain requires miners to process and solve the transactions. There is no specific hardware or software needed to mine cryptocurrencies. You can mine using your CPU, GPU, or even your smartphone. However, one crucial thing that you need is patience and a lot of time because cryptocurrency mining is a highly time-consuming process.

1.  Value of Bitcoin has increased from time to time:

In 2009, when Satoshi Nakamoto created Bitcoin for the first time, 11 million Bitcoins were released into circulation. Till date, more than 10 million of Bitcoins transactions have been done. And now most of them are being exchanged at a very high value concerning its production cost. The value of one Bitcoin increased from time to time from $0.085 to $20k in just 8 years after it was launched for the first time in 2009. And now it is being traded at $4200 with a market cap of $70 billion.

1. If You Lose Your Crypto Wallet, You Lose Your Money:

Many people think that their crypto wallet is safe and secure. Well, it’s not! Here’s why: Crypto-wallet is like a traditional bank account. It stores your money. However, unlike a bank account, you don’t have physical access to that money. It would help if you had a private key to access your account and move your funds or trade in a secure and reputed exchange like bitcoin transactions. If you do not choose wisely and any misconduct may cause you to lose all of your assets, there is virtually no way to get back.

1. There is a limited supply of BTC:

The cryptocurrency Bitcoin has a limit in supply that is expected to be reached by 2140. The complete number of Bitcoins that will ever be issued is 21 million, representing 80% of the coins that will ever exist. This amount was chosen as a consequence of the halving process. By halving the block reward every four years, the total number of Bitcoins is being reduced accordingly, so in 2140 there will be no more new Bitcoins.

Myths:

Following are the myths you must have heard about Bitcoin:-

1. Governments do not support Bitcoin:

The government of almost any country in the world has an opinion on cryptocurrencies and their use, but most are more tolerant than strict. There are no laws that would regulate its circulation and use. And in some countries, Bitcoin is prohibited or restricted.

If we consider that almost all countries have their national currency and no one has forbidden it until now.

1. All cryptocurrencies are scams:

The second myth about Bitcoin is that it’s all a scam. You can buy cryptocurrency at an exchange, just like you would buy other financial instruments, only with the advantage that cryptocurrency can change its price every minute, and it is impossible to predict.

1. If you buy cryptos, you can instantly become a millionaire:

The cryptocurrency market is ignitable due to its very nature – all the transactions are done online and are not backed by any assets. This means that if a cryptocurrency worth $1 today becomes $10 tomorrow, this does not mean that you have made $9 profit overnight.

1. Cryptocurrency is used to finance terrorists and drug dealers:

No one can control cryptocurrency, so it is impossible to make anonymous payments using it unnoticed by banks of different countries and organizations like FATF (Financial Action Task Force). Governments can not track financial flows without access to information on cryptocurrency wallets, which are also pseudonymous, even more than bank accounts are.

1.  Bitcoins Are Anonymous:

You can’t be more wrong about this one! Since Bitcoin is a decentralized cryptocurrency, every transaction made via this currency can be tracked. Therefore, any Bitcoin address that is used for a transaction is stored in the blockchain and associated with your name, email address, and IP address. Every time you receive Bitcoins from someone or make a purchase using your Bitcoins, the information about your wallet is made public.