Myths about Cryptocurrency and Blockchain
In this new era of volatility, the cryptocurrency and blockchain market has become a critical means for companies to disrupt their supply chains. You can get an automated trading experience by accessing the best-in-class trading bots and trading strategies. Unfortunately, these developments are also bringing about a lot of myths and misconceptions, which makes learning the facts important. If you are interested in Bitcoin trading, you may visit bitcoin 360 ai official website and start your trading journey.
The below-mentioned portion has outlined the top five myths about cryptocurrencies and blockchains with simple explanations of why they’re not true! Let’s start by debunking some common myths, like that blockchain tech is only used in Bitcoin or Ethereum.
- Blockchain technology is only used in Bitcoin or Ethereum
Blockchain is not a solution bound to any specific industry but a technology that applies to most parts of the global economy. The significant factor here is that both banks and businesses are not willing to spend money on something they think does not work, but with their rising involvement, people need to know about blockchains’ true potential.
- BTC and DLT are the same:
Although both terms have the same meaning, Bitcoin and blockchain have entirely different structures and have complementing natures. This myth has been perpetuated by the media for years, with organizations such as R3 writing about how safe “true” distributed ledgers are by their mere definition of being decentralized. Unfortunately, the media has failed to offer an unbiased and realistic look at what Bitcoin and blockchain technology are. However, some corporate giants have already taken up blockchain in their operations.
These include IBM, Microsoft and Oracle, all actively involved in blockchain solutions. Blockchain is a database, whereas bitcoin is a peer-to-peer electronic cash system software; the number of bitcoin is 21 million; however, there is merely one blockchain and other blockchains distributed across the nodes are merely replicas of the original blockchain. Moreover, blockchain has found numerous use cases beyond bitcoin.
- Digital Currencies Are Only Used for Illicit Activity:
A common myth about cryptocurrencies is that it’s only used for criminal purposes. Governments and corporations are constantly developing blockchain projects to make their services more effective and efficient. Governments and banks have been highly wary of bitcoin, which might be more about fear than reality. People in the government have failed to understand that people are using bitcoin for illicit activities, but there are other ways businesses can use this digital currency. There is also a lot of money to be made in cryptocurrency, with companies like IBM and Microsoft already taking advantage of it.
- You Have to Be a “Coder” to Use Blockchain:
A common misconception surrounding blockchain technology is that you need to be an expert programmer or developer to use it. While a lot of blockchain technology is open-source and decentralized, most applications today fall into the realm of private, permissioned systems.
- Digital Currencies Don’t Have value:
A common myth surrounding digital currencies is that they’re useless and that they have no value. In reality, cryptocurrencies have a lot of value in how users can use them to purchase goods and services.
Cryptocurrencies are a new market with new technologies, but the technology itself is not the most critical factor in its success or survival. Instead, it’s all about how people use technology, which is why governments and businesses get involved quickly. Digital currencies are already being integrated into some businesses’ supply chains, and there’s even an abundance of platforms for both parties to connect directly with each other for information sharing.
- Cryptocurrencies Aren’t Secure:
Another myth about cryptocurrencies is that they’re not secure. In reality, digital currencies are among the most secure forms of payment. While some cryptocurrencies have value, people will always want to steal said value by hacking or stealing your cryptocurrency wallet. Unfortunately, this myth is also perpetuated by many companies within the cryptocurrency industry, such as Coinbase. They urge its users to sign up but neglect to mention how risky it is to take security measures into their own hands.
- Digital Currencies Are Bad for the Environment:
While it’s true that the bitcoin blockchain is a vast network with a considerable amount of computing power, there are newer consensus algorithms that are better for the Environment. For example, proof-of-stake systems don’t require as much energy as proof-of-work systems.