Since 2009, blockchain technology and cryptocurrencies have been in existence. In early 2021, cryptocurrencies crossed the $1.3-trillion barrier, marking them the top-performing investment vehicle and the world’s fifth-most traded currency by value during the previous decade. Experts have lauded Bitcoin as the “electronic cash” of the digital age, as they assist in fueling the digital economy and pioneering the fourth industrial revolution. And this has also triggered the growth of cryptocurrency exchange platforms, which has simplified the cryptocurrency investment and .
Let’s check out some of the bitcoin and crypto myths and facts!
Myth: One blockchain is right, so there’s only one blockchain in existence.
Fact: There is a blockchain for each cryptocurrency, which is unique.
The time required to do this task varies depending on the blockchain; Bitcoin’s blockchain requires 10 minutes, while Ethereum’s blockchain requires 10-15 seconds. While Bitcoin seeks to be a digital currency, Ethereum enables developers to create peer-to-peer apps that do not need intermediaries and run-on top of Ethereum’s distributed ledger technology.
Myth: Blockchain and bitcoin are the same
Fact: Bitcoin is one of around 10000 cryptocurrencies that are now in circulation throughout the globe. Cryptocurrencies such as Bitcoin and most other cryptocurrencies are founded on distributed ledger technology, known as the blockchain.
The term “cryptocurrency” refers to digital commodities or currencies that may be transferred between two or more entities through the blockchain to purchase real or digital products and services.
The blockchain is a highly secured blockchain platform that continuously records and maintains all transaction data and is accessible to the general public.
Myth: The blockchain is only used in the context of digital property, such as cryptocurrencies and other forms of digital cash.
Fact: Blockchains have real-world applications that go beyond digital assets and span a wide range of businesses, and they assist in the solution of daily issues.
A wide number of applications in the real world are possible since the blockchain, by its very nature, is transparent and available to the general public. Digital voting, enabled by blockchain technology, may aid in the elimination of the electorate and voter fraud. In a similar vein, non-profit organizations use the blockchain to record their fundraising efforts to stay transparent to contributors and demonstrate how funds are being used effectively.
A private peer-to-peer network, which you can access from anywhere in the world, may revolutionize how electronic medical data are securely kept and exchanged. Soon enough, all contracts for the sale or rental of a property will be stored on the blockchain, ensuring that the same terms and conditions bind all parties. Additionally, you may use the blockchain to document the fair and equal distribution of Covid-19 vaccinations, which is a good thing.
Myth: Contrary to popular belief, cryptocurrencies do not have inherent worth.
Fact: Cryptocurrencies do not need backing in the form of a commodity to sustain their value.
Several doubters argue that cryptocurrency does not possess any intrinsic worth since it is not backed by a substance such as gold or silver; nevertheless, the vast majority of monetary systems are not also backed by precious metals.
Rather, a government has issued them and that there is an agreement in place allowing customers to exchange them for products or services of a comparable value that gives them their real worth. As a result, everyone agrees on the worth of the asset.
In the same way, even if any government does not issue cryptocurrencies, there is an agreement in place between willing buyers and willing sellers — a demand and supply relationship — that you may trade them for real-world value in the absence of official intervention.
Myth: Cryptocurrencies are exclusively utilized for illegal or questionable purposes.
Fact: Fiat currency accounts for a far higher proportion of Dark Web transactions than cryptocurrencies.
An official record of each transaction is maintained on the blockchain; thus, although it provides a certain level of anonymity, users and their personal information may be traced back to them, indicating that this anonymity is not completely anonymous. Several cryptocurrencies are meant to be used for anonymous transactions.
Since the beginning of the cryptocurrency era, there have been reports of cryptocurrencies being used for illegal transactions on the Silk Road, a section of the Dark Web.
These myth-busters would have helped clear the air surrounding cryptocurrencies and their applications. It is evident that cryptocurrency is gaining popularity and will soon be a part of mainstream transactions; however, volatility remains a key concern. Hence when planning a crypto investment, don’t miss doing the research and then decide.
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