Bitcoin using blockchain technology and generated 155% annual gain over the last 5 years. Blockchain technology has gained momentum since 2009. Not only has the value of bitcoin increased, but awareness of its importance and greater confidence among investors has also increased. Crypto is used for everyday purchases more than what the general public is aware of. Larger retailers around the world are now accepting cryptocurrencies as a form of payment.

Overall, only 16% of consumers familiar with cryptos have invested in them, showing that crypto’s stereotypes may be impacting its adoption potential. Speculations are often followed whenever the world welcomes something huge and disruptive. To add commercial credibility to the mix, gossip mills find enough fodder to keep unheard and unheard of. Around the world, the same is true of the rise of cryptocurrencies. As these digital assets continue to grow in importance, market demand and value, so do rumors. While this may mislead users, it is important to do the right research and separate the facts from the mere thirsty rumors. Let us break down some of the best myths that cover up the growth of cryptocurrencies.

1. No value for Cryptocurrencies

More than 90% of Fiat money held by people, such as the pound, the euro or the dollar, is already in digital form. Bitcoin-like cryptocurrencies cannot be raised by easing the amount of physical currencies. Since Bitcoin is a currency of deflation and scarcity, it is a much better treasure trove than Fiat coins.

2. Cryptos are too volatile and purely speculative in nature

The dramatic increase in the value of cryptocurrencies with continuous bursts and bubbles in 2018, 2019 and 2020 led to the rejection of many as a speculative property without any purpose or intrinsic value. Like all Fiat currencies, cryptocurrencies are worth having someone willing to pay. Even if prices fall, they are different from physical assets such as the house a person still owns.

Just because a coin is not regulated, does not mean that it is completely speculative in value. Although the US dollar has no intrinsic value, it is universally believed. Cryptocurrencies are experiencing increased stability despite short-term fluctuations in their prices. Currently, Bitcoin products are more stable than many financial products. Cryptocurrencies have become an essential alternative used to facilitate international payments and to operate independently of government policy. They are known to offer a secure tariff option to emerging markets with vulnerable currencies.

3. Cryptocurrencies Are Illegal

But it doesn’t mean that no one can trace them back using the transaction data. Blockchain transactions do not contain specific information, but they include the user’s wallet address, which can be further linked to a real-world identity.

Reports indicate that bitcoin transactions of less than 1pc are used for illegal activities. While the original purpose of blockchain was to power Bitcoin, the community is beginning to benefit from the many uses brought about by its transparency and is digitally accessible to everyone from verifying the stability of diamonds to monitoring contaminated food.

As for precious stones, like food, blockchain can help build trust by providing a complete and transparent record. De Beers, which makes up more than 30 percent of the world’s diamond supply, trade and markets, plans to use a blockchain ledger to find its precious stones for the customer to buy from the mine. This transparency will help the industry as a whole and especially individuals who want to check whether the diamonds they buy are free from conflict.

4. All data are in public

Mostly Wrong. On a public blockchain, transactions are visible; however, identity is decoupled from the transactions. The parties in the transaction are represented by blockchain addresses (which look like a random string of characters). If the owners are careful, they will not be connected to any identifying information. Additionally, a piece of data, like a document, can be stored in a traditional secure cloud with a hash that would provide no value to other users as they would not be able to connect it to the document in the cloud. In a private/permissioned blockchain, access is restricted and managed by an administrator like any internal system.

5. Blockchains Are Costly and Inefficient

However, permissioned networks and even some permissionless networks use consensus mechanisms other than PoW.

6. Cryptocurrencies can be hacked easily

Cryptocurrencies platforms are best platform is just like any other platform for trading. Increasing security in wallets that facilitate the way to secure your wallet and enable secure transactions.

7.Cryptocurrencies can’t be accepted as a mode of payment

The rise of Cryptocurrencies began on 2008. Slowly and steadily, their virtue was realized by the people who invested in it. Big companies like Microsoft, Fiverr, Dell and Expedia have started to accept Bitcoin.

Conclusion

To sum up, cryptocurrencies are an explored avenue in the Global market. Despite all the speculations and rumours, the value of Bitcoin has been on a consistent rise, reached almost peak level 64980$ on April 2021. Now bitcoin value is $43831 on 8^th August 2021. Furthermore, a number of other cryptocurrencies have been developed, and are increasingly becoming popular with the users and investors alike. The demand is expected to surge, given the huge demand in the market, the user-friendly and decentralised attributes of cryptocurrency, making it immune from the demonetisation etc. With these myths debunked, and users growing to understand and appreciate the extent of cryptocurrencies, these digital assets will become a part of our daily lives in the times to come.