The beginnings of the era in which cryptocurrencies were released were not excellent because society didn’t confide in this new monetary framework that diverged from customary and regular cash. We were accustomed to utilizing the traditional methods of payments, which is why the idea of using digital currencies seemed not to be feasible for most of us at that time. But as time has passed, the crypto world has taken an exponential rise.
Even though cryptocurrency has gained so much popularity all around the globe, it is still misunderstood by a lot of people. Due to the lack of information about this trade market, people have various myths and misconceptions about digital coins. In this article, you will learn about all the common myths that people generally have about cryptocurrency.
Many people still don’t believe in this new monetary system. Most of them think that it is something illegal and which should not be done. Such misinformation leads to a decrease in the growth of people who want to engage in this trade market. Meanwhile, if you are looking to explore this financial market, do visit affdeals.com.
COMMON MISCONCEPTIONS PEOPLE HAVE ABOUT CRYPTOCURRENCY
1. There is no tax involved in cryptocurrency:
For sure, there is no central authority or any banks included in this trading market. Regardless, this doesn’t prevent modernized money from being taxed. Like some other trade, you will be taxed whenever you sell it or receive any amount of money using these digital coins.
In India, when you exchange digital currencies and make a benefit, and if that benefit surpasses 10 lakh rupees, you need to pay 30% on the profit. This is for momentary increases where there is no base time for holding the speculation. But in the case of long-term investments such as keeping the coins for about 2-3 years, an investor will have to pay 20 percent of the profit as a tax.
2. Cryptocurrency is fake and fictitious:
Another assumption that most people have in their minds is that digital coins are fake and fictitious. But this is wrong. Digital forms of money can’t be duplicated. Each virtual cash works with its codes, permitting them not to be forged. Due to the blockchain innovation utilized by cryptographic forms of money, it is beyond the realm of imagination to expect to record the exchanges that an individual performs or request where they do as such.
They can’t be falsified to keep such exchanges from being copied or make equivalent virtual monetary standards. The framework would identify them and afterward crash in no time flat.
3. Digital currencies are not legitimate:
Although these coins have been restricted in nations like Bolivia, Algeria, Russia, etc., many EU countries and the USA have made digital currencies a legal matter. India’s past Finance Minister, Mr. Arun Jaitley, called attention to in the Budget 2018-19 that Blockchain innovation will be investigated to advance computerized and safe exchanges. The exchanges in digital money are not prohibited in India and are flourishing.
4. The actions taken while transacting crypto are not trackable:
Many people think that the transactions made by using cryptocurrencies are not trackable, but this is not the case. This blockchain technology, along with different functionalities, plays out the check of exchanges completed with cryptographic forms of money. Likewise, it saves the data of those exchanges, and it records without question everything, for example, the time and area wherein the transactions are being made.
5. There is only one blockchain technology being used:
Another myth related to crypto coins that people have is that only one blockchain technology is used to create them. However, this is not the actual cause. There are numerous blockchains.
Blockchain is only an innovation that obliges various issues; they might be public or private adaptations of blockchain, the source might be open or shut, and so on. While one kind of blockchain may back Bitcoin, others may uphold other digital currencies like Ethereum, Ripple, and so on.
6. It is harmful to the environment:
This misconception has been developing as a result of the procedure used for mining cryptographic forms of money. Excavators are not just the individuals who are occupied with the profession of mining. There is likewise the calling of crypto mining. What’s going on here? “Cryptocurrency mining is a cycle where exchanges for different types of cryptographic money are confirmed and added to the blockchain advanced record.”
Organizations put a great deal of cash in straight gear to mine cryptocurrencies, and this process consumes a lot of power. This reality has led to the misconception amongst various individuals that this process harms our climate because of enormous electricity consumption.
7. It can only be used by people knowing technology:
It is somewhat true that people who are aware of the technology can be better users of digital currencies, but it isn’t wholly accurate. Any individual who needs to utilize or put resources into digital forms of money can do as such.
They have to gain the essential information on their utilization and speculation, just as actual data about what they are and their benefits. Today, there are numerous and various organizations that permit payment for their items or administrations with cryptographic forms of money.
8. Digital currencies can not be used as payment:
Digital currencies stepped into the world in 2008, and gradually, their uprightness has been acknowledged by individuals who are putting resources into it. Large organizations like Microsoft, Dell, and Fiverr have begun to recognize Bitcoin. Many companies from all around the world have started accepting cryptocurrencies in the form of payment.
TO SUM UP
To summarize, since digital currency is a neglected road in various parts of the world, a source that can provide essential and proper knowledge about cryptocurrencies can be valuable for investors. People should not have any doubts or misconceptions in their minds while deciding to invest their resources in cryptocurrencies.