Top 6 Crypto Myths Everyone Should Know

Top 6 Crypto Myths Everyone Should Know

In this article, I am gonna talk about Top 6 crypto myths everyone should know about. Are you sure you’re not falling for these myths? If you want to become successful in the crypto world then it’s very important that you don’t fall victim to these myths. In the crypto world knowledge is everything. With proper knowledge you climb on top without that however you will lose everything. So let’s not delay anymore, here is the top 5 crypto myths that you should be aware of.

 

1. Cryptocurrency Can Make You Rich

The first and most important one is that Cryptocurrency can make you rich. And to become rich all you need to do is to find the next bitcoin and invest few bucks and you are a millionaire. You will find this narrative on most of the internet. Not only that we also hear about crypto millionaires who had nothing now they are the rich just cause of crypto. Now I am not saying that these are the false story. But even if they are all sure they are few and far between. You are much likely to hear 1 guy who made millions in crypto but you will not hear about 100 guys who lost all their money.

2. Make Profit By Crypto Day Trading

Many people believe that the best way to make Make profit is by crypto day trading. This is actually not a very good idea. Because the crypto market is way too volatile and fluctuates almost every second. You will most likely get success if you trade your crypto weekly or monthly basis.

Not only that but trading too often meaning you are increasing your trading fee. It might not seems much but this fee can build up pretty fast. And in long term, it can affect your profitability more than you think. Most successful crypto traders apply to buy and hold strategy. This doesn’t mean they hold their crypto for years but they always trade at the right time.

3. Retail Traders Are Controlling The Crypto Market

Many people believe that Retail traders are controlling the crypto market. While it has some truth on it but corporations and whales are the far bigger culprit here.

The truth of the matter is that most retail traders got absolutely destroyed by the highly efficient liquidation engine. As is said this is because of the crypto billionaire and big whales. Like it or not like all the currency in the world at the end of the billionaires and whales decide the fate of the crypto market.

4. Bitcoin Effect On The Environment

Bitcoin Effect On The Environment

Many people believe bitcoin has a massive negative impact on the environment. Ever since Elon mask has bought up this topic people seem to talk about it more and more. Of course, its not only Elon mask but politician like Elizabeth warren and comedian Bill Mahr has also spoken about the issue.

However, the narrative they are trying to push is not true. For example, according to a coin share report bitcoin, miners get 74% of their energy from renewable sources. On the other general user only get 26% of their energy from renewable sources. So from these statistics alone, bitcoin miners use 3 times more renewable energy than all the other energy consumers. To be honest with that stat it’s hard to believe that people still claim bitcoin miner is gonna destroy Environment.

I also think this 74% is bound to increase. That is mainly for two reasons. Number one, Chinese miners are driven out of the country and they are setting up their mining where electricity is cheap thus renewable energy. The second reason is simply that bitcoin miners always try to find a cheap source of energy that is renewable. Honestly, Bitcoin could be the first 100% renewable energy industry in the whole world.

5. Bitcoin is decentralized and controlled by china

Bitcoin is decentralized and controlled by china

Many people believe that Bitcoin is decentralized and controlled by China. This is mainly because most of the bitcoin hash rates are historically been in Chiana. This point is always brought up by the opponent of Bitcoin when talking about decentralization. A few days back billionaire Elon Mask posted on a tweet that bitcoin is highly centralized.

However, what you need to understand is the difference between the bitcoin network and the miner network. The network itself is a collection of nodes that store the blockchain. Miners on the other hand participate in creating that block. Just because most of the miners are located in one country doesn’t mean the miners are centralized. There are thirteen thousand nodes all are located in different parts of the world. So as you can see bitcoin is very decentralized.

6. Government can shut down cryptocurrency

Government can shut down cryptocurrency

Now, this may be the most feared myth in the crypto world that any time government can shut down cryptocurrency. This fear is mainly because mainstream media always makes news about how this or that government try to shut down bitcoin. More recently we have countries like India, Turkey, Russia tried to ban bitcoin.

The only problem with this plan is that it physically can not be done. Cryptocurrencies like bitcoin and Ethereum are a network of decentralized nodes around the world. What government can ban here? Anyone can spin up a node anywhere in the world and keep a record of the ledger. It’s also really hard to determine who is exactly running these nodes. This is possible because of other technology like VPN.

Just to ensure you how hard it is to ban cryptocurrency. China is trying to ban crypto since 2017 and fails to do so. I mean if a country like China can not ban crypto that has an internet firewall system for every user. If China can not stop miners from sending nodes then you can be pretty sure that no other country will be able to do it either. The only to ban crypto is to shut down the whole internet and we all know how much chance of that happening.

Leave a Reply