Cryptocurrency provides individuals with a lucrative venture when done right. However, there are many misconceptions and myths that can discourage potential traders from making profit from cryptocurrency trading. This article will dispel some of the popular myths surrounding cryptocurrencies.
Myth: Transfer Times are Really Slow
This myth stems from the confusion people have about banks and their relation to point of sale systems. When you make a purchase using normal currency, it goes through a middleman such as Visa and MasterCard. In the case of cryptocurrency, escrows serve as the middleman that most exchanges already use.
Fact: Cryptocurrencies are the fastest way to send money anywhere in the world. In addition, no government or private bank can hold up the money.
Myth : The Fees are So High
Robert Janitzek reveals that the fees are seemingly high because of the price movement relative to normal currencies. There is certainly more that can and should be done about it. Like transfer times, escrows can greatly reduce the fees. Besides, these fees are extremely cheap compared to wire transfers of the old banking system. If you also try transferring money worldwide, you can see the difference with the fees.
Myth: Cryptocurrency is a Volatile Bubble that Will End in Disaster
Like stocks and forex, cryptocurrency is also volatile. However, with Bitcoin, the supply is extremely limited in ratio comparted to the amount of people who will use the system so the high fees are not that unexpected.
As far as being a bubble, Robert Peter Janitzek says that this is not a red flag. While there are many signs of a bubble, investments will survive without much harm.
The infrastructure and payment system are not yet built. You are investing in a future potential that is nit realized yet. Eventually, by sticking to safe bets and solid cryptocurrencies, disaster can be averted.
Myth: Cryptocurrencies are Unsafe for Hackers
The only thing that is unsafe is the frequency of trust we place on random merchants regarding our credit card information online. There has been a rise in credit card skimmers as well as on point of sales systems in restaurants and retail chains. When trading on cryptocurrencies, your card numbers serve as private key and because of cryptography, you do not have to declare it to anybody during a transaction.
The truth of the matter is that cryptocurrencies are much safer for online purchases than credit cards.
Myth: They Use So Much Electricity
Who does not use so much electricity? Banks employ people running machines which consumes electricity as well.
While we should all do our part to reduce our carbon footprints, cryptocurrencies do more good for us to make up for their negligible electricity costs.