10 myths about cryptocurrency
Cryptocurrency has always been a controversial topic – ever since bitcoin took the world by storm in 2017. While some welcomed the new means of payment with open arms, others were a little more skeptical. And so it really has continued.
The skepticism that many have had about cryptocurrency has – not surprisingly – led to a lot of talk, which in turn has led to the emergence of a number of myths on the subject. In this article we will take a closer look at 10 of these myths!
It is difficult to get acquainted with cryptocurrency
It is difficult to get acquainted with cryptocurrency . Well, those who say that are probably not completely wrong, but is it really something that is easy to get into if you have no idea about it at all before? No? Just!
With that said, getting into cryptocurrency will not be a very big problem. It is important to remember that we are in 2022, and it is not close to what it was when bitcoin appeared in 2017. In contrast, there is now a lot of good information on the subject.
Maybe you even know someone who has been doing it for a while? Then surely he can give you a helping hand while you learn to navigate through the crypto universe!
Cryptocurrency cannot be used for payment
Cryptocurrency cannot be used for payment – this is partly a truth, which we believe will eventually become a myth. And that’s why we choose to include it here anyway.
Bitcoin does not have the same position in our modern society as, for example, Vipps. If you are in the store with a friend and have forgotten your wallet at home, then you can easily tip them for the outlay via your mobile. You can not do that with cryptocurrency. Nor can you pay at the checkout yourself, as you can with Vipps in some stores.
But there is reason to believe that this will change over time. A few weeks ago came the news that the world’s first bitcoin country was born. El Salvador has approved bitcoin as the official means of payment!
It should also be said that cryptocurrency is an accepted means of payment in some cases. A good example of this is in the casino world. There are many online casinos that allow their customers to make deposits and withdrawals with cryptocurrency!
There is no real monetary value in cryptocurrency
There is no real money value in cryptocurrency – this is completely wrong! Okay – cryptocurrencies do not come in physical coins and banknotes such as Norwegian kroner, US dollars or Hungarian forints, but that does not mean they are worthless.
There is no requirement that the currency must be present in a physical condition for it to be considered a full-fledged currency. In fact, there are a number of other criteria that must be met:
- There must be a limit to how much of the currency in question exists.
- It must be possible to divide the currency into smaller units.
- It must be possible to use the currency as a means of payment.
- Transferring currency between two parties should be easy.
- The currency must be durable so that it is not so easily damaged.
- It should not be possible to counterfeit the currency.
With that said, in our digital world it has become so that very few people pay with physical money in the shops. The vast majority pay with debit or credit cards, and that money is worth as much as the physical ones!
Cryptocurrency is harmful to the environment
Recently, there has been a greater and greater focus on what is harmful to the environment, and the recovery of cryptocurrency has been cited as one of many examples of just this. But this is a claim we would take with a little pinch of salt.
When we first talk about it, it does not come from the fact that cryptocurrency uses both power and computing power. It goes without saying, but before you dismiss it because of it, it may actually be worthwhile to take a look at what energy is being used here. It is for surplus energy!
But yes, the recovery of cryptocurrency leaves a certain environmental imprint, but in the end it is not quite as bad as the skeptics would like people to believe!
Only criminals use cryptocurrency
Since there were quite a few who were skeptical of cryptocurrency in the beginning, it did not surprisingly emerge a myth that only criminals use cryptocurrency. But neither does this have any kind of root in reality.
Cryptocurrency is not what criminals are most concerned about, as this will be a relatively impossible not only to plan, but also to carry out such a robbery. We can more or less guarantee that a possible robber is more interested in the banknotes you have in your wallet than your holdings of cryptocurrency.
Cryptocurrency is a pyramid scheme
Some will probably try to claim that cryptocurrency is a pyramid scheme. That is, there are some people at the top and control the development. But it is as far from the truth as it is possible to get.
Cryptocurrency is a decentralized concept, which means that no third parties are involved. In any other transaction, this goes through a bank, which then gets the role of third party. There are only two parties in such a transaction – and that is the sender and recipient.
You can get rich by buying cryptocurrency
Do you hand in a lottery ticket every single week in the hope of winning the big prize? You are guaranteed not to be alone! Do you know anyone who would say no to a few extra millions in their wallet? Probably not!
But there is one thing that is for sure, and that is that you will not get rich by buying cryptocurrency. So if you are considering buying cryptocurrency solely because you think it will make you rich in the long run, then we would think twice.
Cryptocurrency will be a good investment, but it is not the type of investment that you are going to get rich from. Then it is unfortunately the case that you arrive a few years late!
Cryptocurrency is expensive and you have to buy at least one coin
Have you toyed with the idea of buying cryptocurrency, then google the value of one bitcoin or one ethereum, and ended up getting backwards from what was written there? At the time of writing, one bitcoin is worth 384,234.64 Norwegian kroner, while one ethereum is worth 27,390.79 kroner.
“I can not afford to buy that,” you probably thought when you saw those sums on the screen in front of you. But it is not the case that you have to buy a whole coin when you are going to buy cryptocurrency. If you do not want to buy cryptocurrency for more than 500 kroner, then you do not need it!
Cryptocurrency is illegal
Some will probably also try to make claims that cryptocurrency is illegal, but this is also a claim you should bring a good pinch of salt. Or at least a little pinch!
There are some countries where cryptocurrency is not allowed, such as Russia, but elsewhere in the world, cryptocurrency is not illegal.
Should you suddenly end up in a situation where someone is trying to claim this, then we can give you the perfect answer. Because there are actually countries that have equated bitcoin with their official currency, which is the US dollar. And that country is El Salvador.
It may not be common to go to the store and ask if they accept cryptocurrency, but who knows? Maybe one day it will be like this. It will be exciting to follow how our world develops in this area!
Cryptocurrency is a junk concept
This myth was probably more relevant in the beginning than it is today. Now this is not a statement so many are trying to come up with anymore, simply because it is not possible to find good arguments that support this position.
In recent years, and perhaps most of all in 2021, we saw that the opposite is the case. Although a few may consider cryptocurrency to be a frivolous concept, there are many serious players who have opened their eyes to cryptocurrency:
- MicroStrategy (a US IT company) has bought bitcoin for billions of US dollars.
- Tesla has bought bitcoin for around NOK 13 billion.
- Elon Musk has talked warmly about cryptocurrency on Twitter.
However, it is not only abroad that people have opened their eyes to cryptocurrency. Also in this country we can highlight a few names:
- Kjell Inge Røkke has bought bitcoin for half a billion kroner.
- Øystein Stray Spetalen has both bought into the ownership side of Firi and bought bitcoin as a private person .
One can say a lot about cryptocurrency, but that it is a junk concept is not one of them!
You can use crypto in many places, as depicted in this video: