Cryptocurrencies are a hot topic and for a good reason.
These digital currencies offer an innovative way for people to store and transfer value with no banks or intermediaries.
However, many misconceptions surround crypto and its relation to traditional money.
So in this post, we’ll dispel five popular crypto misconceptions while discussing the benefits of crypto and finish with methods to getting involved in Web 3.0.
This is one of the most popular misconceptions about cryptocurrency. People often assume cryptocurrencies are “less legitimate” than traditional money because they lack physical representation.
That is far from the truth.
Cryptocurrencies function as any other currency, the only difference being their decentralized nature and the fact that they lack legal tender. However, anyone can still purchase goods and services with these digital tokens.
While crypto has been used to carry out illegal activities, blockchain is only associated with unlawful activities because people think crypto is anonymous and untraceable.
Every transaction made with a cryptocurrency is recorded on a public ledger on the blockchain, meaning anyone with access to this information can view the logs.
Although there are examples of fraudulent activity involving cryptocurrency, branding crypto as a scam is an inaccurate misstatement, considering most crypto projects are legitimate.
Some cryptocurrencies may be better suited for specific applications than others; however, to succeed, crypto projects must meet basic listing requirements such as having an obvious purpose, being open source, and following an established protocol.
Platforms, such as CoinPayments, come equipped with sophisticated crypto vaults that lock and safeguard the user’s coins as a countermeasure in the event of a scam.
Assuming crypto is only for the “tech-savvy” is a common refrain among crypto newcomers. Anyone can create a digital wallet and start trading crypto.
Crypto payment gateways such as CoinPayments, make this process easy and accessible for everyone.
No specific country or central bank owns cryptocurrencies, but crypto is subject to laws and regulations at the federal, state, or local level in most countries.
In Europe, for example, an agreement on the markets in crypto-assets (MiCA) ruled that issuers of asset-referenced tokens must have a registered office in the EU to allow oversight bodies to supervise and monitor offers made to the public.
Since cryptocurrencies are digital, parties can send them anywhere worldwide without involving third-party intermediaries. This facilitation of global transactions is helpful for international payments and is one reason CoinPayments provides crypto payment solutions almost worldwide. The full list of restricted jurisdictions can be found here.
Because cryptocurrencies are borderless, they’re also particularly resistant to political and economic upheaval. As a result, they can function as a store of value and a medium of exchange.
Finally, most cryptocurrencies tend to increase in value over time and with increasing adoption. The more people use them, the more their value tends to grow.
Different currencies offer users different modus operandi regarding how to obtain their assets.
Still, the most popular way to obtain crypto is by making direct purchases using fiat currency or making cryptocurrency conversions, usually from Bitcoin or Ethereum, into the specified asset. A crypto payment gateway such as CoinPayments enables users to buy crypto using their debit or credit card, with convenient fees.
Users can also earn crypto through airdrops — a method for distributing tokens or coins to users who share the project’s vision.
Making or accepting payments in crypto is one of the most important ways to get people to appreciate the true value of crypto. But, unfortunately, the crypto payments industry has found itself in a chicken-and-egg scenario.
And there are several reasons this chicken and egg problem exists: Merchants don’t want to accept cryptocurrency payments because they need to learn how to do it securely, or they don’t trust their customers’ crypto wallets.
Consumers are unsure of the value they are getting when they purchase cryptocurrencies. Last, consumers have fewer options for where to spend their digital assets because only a few merchant services accept crypto as payments.
By allowing cryptocurrency to become a payment method, CoinPayments will give crypto the real-world purpose it needs. Otherwise, cryptocurrencies will have difficulties overcoming the myths and misunderstandings surrounding them.
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