Misconceptions around Cryptocurrencies

There are some misconceptions around crypto that make people stay away from this. I'm guessing that is one of the biggest reasons why people are hesitant to even give it a try and it is also very hard to talk to people and convince them to give it a try. I would like to list out some of the misconceptions that I can think of and share my thoughts on the same. Most of these were raised as a question to me when I talk about crypto to people.

Crypto is a scam

It all depends on what project you are into. There are many projects that are good and also a scam at the same time. It depends on how you choose your cryptocurrency and spend your money and time on the same. Neoxian once wrote a good guide to evaluate and choose a good cryptocurrency. The post is still intact. You can give it a read and stay away from scam projects.

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Crypto is gambling

Not all crypto stuff are gambling. I'm sure there are many projects in the crypto world that involve gambling as well. I can even go to an extent and say that there are many casinos that move their currencies in crypto to make things easier for them. Cryptocurrenices give possibilities for any type of project, people who are interested in projects that are related to gambling can take that route. For others who are not interested in Gambling, there is a lot more stuff out there.

Digital currencies have no value against the real ones

This is again a misconception. Digital currencies cannot be fully compared with real-world currencies. I understand that we have to create the value for digital currencies only by mapping it with a real-world currency but cryptocurrencies can be considered more like commodities. Some of the crypto projects or cryptocurrencies like Bitcoin have limited supply and that makes the coin rare to obtain. That is also one of the reasons why the price of the coin keeps pumping. Nobody can create more supply of Bitcoin beyond that definite number. That's the beauty of decentralization and blockchain technology. So, comparing cryptocurrencies with real-world currencies is not a good thing to do.

Crypto is not legal

I agree that in many countries crypto is not legal. Some of the countries don't even know how they can control people from transacting or using cryptocurrencies. I personally think that as long as the internet prevails and people use the internet, crypto will always prevail. The blockchains are decentralized and there will be someone in some part of the world running a node. Our crypto assets will be available in the blockchain somewhere even if we don't have access to them. Cryptocurrencies cannot be completely banned, the government can only announce that they cannot be accepted as a legal tender but otherwise the best way to handle them is to bring some regulation to the crypto.

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Crypto needs huge investments

This statement is not entirely true. It depends on what type of investments we are planning to do. There are many opportunities in the crypto world that can be done without a single penny. We can make a huge amount of money and take it to our real world without investing anything. For example, Hive is a blockchain where you can get paid in crypto for sharing your thoughts in the form of articles. The same applies to Noise Cash and Read Cash as well. We don't have to invest anything but our time and earn some crypto out of it.

Crypto is risky

I agree to some extent that crypto is risky considering the instability of the market. The level of risk is also a factor here. It depends on what we are investing in. We can do a safe play or a high-risk game. The risk and loss are dependent on where we are focusing. There are some stable investment opportunities where we can invest in a stable coin and get a decent return from it. Some of the DeFi stuff they call decentralized is also not fully decentralized but on some blockchains, there are decentralized earning opportunities that are available as smart contracts that can be less risky. To give an example, I would say the price of HBD is pretty stable around 1$ and it gives us a 10% APR for our investment. This is more like a safe stable coin investment.

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