The crypto space exploded in 2017, spreading awareness about digital coins around the world. But, even so, there are still a lot of false assumptions and myths about digital currencies that managed to stick around thanks to mainstream media.
People often tend to believe what they read, especially if the source is a big, trusted media website. They end up believing in false facts, without bothering to check their legitimacy, which leads to creating an entirely false image. As for the media sources, they may have run the false myth out of their own lack of knowledge, or maybe for an even simpler reason — to get page views.
Either way, the myths can be damaging to the emerging crypto industry, and those believing them might miss out on some major opportunities. Here are three of them which could end up costing you an entire fortune.
1. Bitcoin is not real money
This is a rather big misconception in regards to BTC, as many skeptics tend to claim that it is not real money. But, if we take a look at what makes money — money, it quickly becomes clear that Bitcoin does meet the necessary criteria.
The fundamental characteristics that an asset must possess in order to be considered real money include uniformity, divisibility, portability, durability, limited supply, and acceptability.
Uniformity means that every unit of an asset needs to be the same as every other unit. Every dollar is the same as every other dollar, and the same goes for every BTC.
Then, there is divisibility, or the asset’s ability to break down its unit to smaller increments. The dollar can do this in the form of cents, while Bitcoin has its satoshis. Portability, on the other hand, includes the asset’s ability to be stored and transferred with ease, and it is pretty clear that Bitcoin is far better at this than fiat money.
Durability is another characteristic, although this one is questionable, as paper bills do have a shelf life, and can be easily destroyed. Assets like gold, for example, last forever, and Bitcoin features a similar form of durability itself.
There is also a matter of limited supply, where BTC only has 21 million units that will ever exist, and it has yet to reach its market cap. This will prevent inflation, and its price can only go up as a result. Finally, there is acceptability, as money needs to be widely accepted in order to be used. The entire world will accept USD without question. This is currently the only area where BTC is lacking, but it continues to spread, and it will likely reach this itself in a few years.
2. Only criminals use cryptocurrencies
This is just plain wrong. While criminals were among the first to discover digital currencies and use them — typically on the dark web — they are currently the least represented group of crypto users. There are entire crypto-based companies out there that work with cryptocurrencies, including regulated, legitimate exchanges such as Coinbase or Binance.
Even large corporations like Facebook are developing their own coins in secret, while JP Morgan, a banking institution known around the world, already publicly announced its own cryptocurrency. Meanwhile, countries with economic problems such as Turkey and Venezuela are known for accepting cryptos at a rapid pace, as it allows families to finally get money that holds value.
3. Bitcoin gets hacked all the time
This is another false assumption that is often misused by anti-crypto groups. The truth is that Bitcoin is not getting hacked at all — centralized exchanges are the ones that succumb to hacking attacks. Bitcoin is a decentralized currency, which means that thousands of individuals are operating its blockchain. In order for a hacker to actually hack Bitcoin, they would have to hack thousands of computers around the world simultaneously, which is impossible.
Meanwhile, exchanges have their own servers, which can be hacked if a vulnerability is found. This is why centralization is a problem, and why decentralized systems were invented in the first place. It is also why you should never keep your coins in the exchange’s wallet.
In other words, BTC cannot be hacked, but the centralized entity that handles it can. It is up to every individual user to secure their coins as best they can, but the coins themselves do not suffer from such a flaw.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…