Cryptocurrencies are not the new thing that you see in the market. They have already been in the market for over 10 years. People have so started comparing the cryptocurrencies with the traditional fiat currencies.
Despite seeing that benefits cryptocurrencies have fiat currencies, there are still people who are unwilling to trust the existence of the cryptocurrencies.
For the past several decades, people were looking for a new financial solution to ease up from complex financial transactions. Not that they have a solution, they are not willing to accept the new concept.
Misconceptions about Bitcoin and Cryptocurrencies
The lack of trust has created a misconception among the people. This has led to certain rumors about cryptocurrencies. All these rumors have nothing to do with the cryptocurrencies. To be frank, they are not in the first place.
Bitcoin is a new concept people tend to describe it as illicit currency. The lack of knowledge has planted seeds of misconception in their mind.
In a study, it has been found that 60% of internet users know of the existence of the cryptocurrency. However, most people came to know about bitcoin and other cryptocurrencies from the internet, where most of the information is misleading.
Hence, we are here to bridge the knowledge gap and provide credible information by debunking all the misconceptions.
- Bitcoin will replace fiat currency
We have heard quite a lot that cryptocurrency holds the potential to replace fiat currencies. Well, this can be true; however, we are still light years behind before cryptocurrency can replace or even become a mainstream currency. The reason is very simple. We lack the right kind of infrastructure that can support a new currency system. Even if we can create a new infrastructure, we cannot forget that people still have billions of fiat currencies.
- It is anonymous
There is a concept of bitcoin transactions being untraceable. But that is not true. We all know that crypto transactions occur over a public ledger network. That means whenever there are transactions, every member of the network is aware of it. And if your ID is traced, every transactional information will be visible.
- Bitcoin has intrinsic value
We all know that no rare elements or institutions are baking the cryptocurrency value. Unlike fiat currencies (which are powered by the government institution), cryptocurrency is a decentralized currency.
However, we cannot say that it does not have any intrinsic value. You may not find anything tangible, but there are factors that back the value of cryptocurrencies.
- Acceptability
- Durability
- Interchangeability
- Divisibility
- Bitcoin is not taxable
Well, you are correct that bitcoin is not taxable. But this statement might stand false because the countries have accepted the existence of the cryptocurrencies and have issued bills that say that people with crypto profit falls under the tax payees.
If you are from a country where the law has nothing to say on crypto trade, you can say it is not taxable. But if you are a citizen of the USA, Australia, China, Venezuela, and the UK, you fall under tax payees.
If you are one of the bitcoin traders and want to pay up your tax without any hassle, you can use bitcoin up to keep tabs on you every transaction. This can help you file tax in one full scoop.
- Bitcoin is illegal
Well, you can say so. If you think bitcoin is illegal just because people use it for illicit purposes. If we consider your statement true, then the same thing can be said for the fiat currencies. You know that fiat currencies have been in the financial ecosystem for thousands of years, and we all know all the money laundering going into the system.
If we consider these two facts, we can conclude that the fiat currency is also legal. Arguing on this will not get us anywhere. It is not the currency’s fault that we use it for illegal activities.
Conclusion
With that being said, we have highlighted the most believed rumors of bitcoin and cryptocurrencies. We hope that we were able to put some light on false rumors and misconceptions.
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