Cryptocurrencies have become a popular way to earn money online. However, there are many misconceptions about it. Some people think it is very profitable and easy to do trading while others believe it is a waste of time. In this blog post, we will explore the common facts and myths about cryptocurrencies that are not only interesting but also affected the market at many points.
Understanding Cryptocurrency
Cryptocurrency is a digital asset engineered to facilitate financial transactions and exchanges, secured with unbreakable cryptography. With decentralization at its core, cryptocurrencies are not subject to government or any type of banking oversight – allowing freedom in the way payments can be made and received!
Facts And Myths About Cryptocurrencies
Facts About Cryptocurrency
1. The first commercial Bitcoin transaction was for pizza.
The first commercial Bitcoin transaction was for a large pizza order from Papa John’s. On May 22, 2010, Laszlo Hanyecz paid 10,000 Bitcoin for two pizzas from Papa John’s. At the time of the purchase, those 10,000 Bitcoin were worth about $25.
However, if he had held onto that bitcoin, they would be worth millions of dollars today! So while it may have been a cheap pizza deal at the time, it would be much more expensive today.
2. There are more than 12,000 cryptos in existence.
There are more than 12,000 cryptos in existence. While Bitcoin is the most well-known and established crypto, there are now a wide variety of other cryptos that offer different features, benefits, and applications. You can buy cryptocurrency in Dubai or anywhere else of your choice among these 12,000 anytime with convenience. Some cryptos are designed specifically for payments (Bitcoin, Litecoin), others as digital assets/investments (Ethereum, Ripple), while still others focus on privacy and encryption (Monero, Zcash).
3. Total amount of bitcoin is limited
The maximum possible quantity of bitcoin that can be mined is a finite 21 million. At present, there is more than 19.26 million bitcoin in circulation; thus, the final number won’t be reached for quite some time!
4. Nigeria is Africa’s largest crypto market
Cryptocurrencies are gaining in popularity all over the world, and Nigeria is no exception. In fact, Nigeria is Africa’s largest crypto market. Many people in Nigeria lack access to traditional banking services, so they turn to cryptocurrencies, as it offers a way to transfer money quickly and cheaply, and they are often more reliable than traditional bank transfers.
5. NFTs are not currencies.
NFTs are not currencies. They are digital assets that exist on a blockchain. A currency is something that is used to buy goods and services, whereas an NFT is a digital asset that has value because someone else agrees that it does. For example, gold is a physical currency because people use it to buy things. Bitcoin is a digital asset, but it is not a currency because it doesn’t have any intrinsic value still people buy Bitcoin in Dubai with cash and in other parts of the world to get products and services in return.
6. Dogecoin started as a joke.
It’s true that Dogecoin started as a joke. It was created in December 2013 by Jackson Palmer and Billy Markus as a parody of other cryptocurrencies like Bitcoin. But while some people initially saw it as a joke, Dogecoin has since become one of the most popular cryptocurrencies in the world. In fact, at its peak in January 2020, it had a market capitalization of over $2 billion. So while it may have started out as a joke, Dogecoin is now a serious cryptocurrency with real-world value.
Myths About Cryptocurrencies
1. Cryptocurrencies aren’t secure
Cryptocurrencies are more secure than traditional currency because they’re digital and decentralized. There is no central authority controlling them, so they can’t be easily hacked or seized. And because they’re digital, they can’t be counterfeited.
2. Cryptos are harmful to the environment
It depends on how cryptos are mined and what kind of hardware is used. For example, if cryptos are mined with traditional mining methods (e.g. through the use of coal-fired power plants), then they would be harmful to the environment. However, if cryptos are mined with renewable energy sources (e.g. through the use of solar or wind power), then they would not be harmful to the environment.
3. Cryptos are used for illegal activities.
It’s often said that cryptos are used for illegal activities, but this is not actually the case. Cryptocurrencies are more commonly used for legitimate purposes, such as making payments or trading digital assets. That being said, it’s true that cryptos can be used for illegal activities, and in recent times, many sorts of cryptocurrency scams have been seen.
4. Cryptos face govt. crackdown
There is no doubt that governments around the world are starting to take notice of cryptocurrencies and the potential for them to be used for criminal purposes. However, it is too early to say whether or not a crackdown on cryptos is imminent. Many governments are still trying to figure out how best to regulate cryptocurrencies, and they don’t want to stifle innovation in this area.
5. Crypto is too risky for many organizations due to price volatility
It’s not a myth that crypto is too risky for many organizations due to price volatility. In fact, price volatility is one of the biggest risks associated with trading in cryptocurrencies. People tend to sell Bitcoin in Dubai for cash and where ever it is convenient for them due to volatility. That said, there are a number of ways that businesses can limit their exposure to price volatility and reduce the risk associated with trading in cryptos.
6. Crypto fundraising brings in significant gifts.
There is no question that cryptocurrency fundraising has become a popular way to generate donations for a variety of causes. However, it’s important to remember that not all cryptocurrencies are created equal, and some are more likely to bring in significant gifts than others.
Conclusion
In conclusion, cryptocurrencies have become a popular asset class among investors. While investing in cryptos does come with its own set of risks, those willing to take the plunge are often rewarded for the effort. With its decentralized nature, cryptocurrency has the potential to be a game changer – but careful speculation and research should always be undertaken by an informed investor. Every day new advancements are made that make understanding and utilizing cryptos simpler, so it’s worth taking a closer look at what this asset class can offer for you and your portfolio. Cryptocurrencies may still be a mystery to some, but in spite of crypto volatility, there’s no denying that it is here to stay.
