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Most Popular Crypto Myths Put to Rest by OctaFX

Regardless of what world affairs are concerned with now, bitcoin just does its own thing: it pumped the vertical line towards 68,700 USD on 10 November 2021, closing that day with a new all-time high. The entire following month was a tour-de-force involving the price moving down to almost 46,500 USD on 4 December—a correction of over 32 per cent, taking the altcoin market down with it. Still, a bear sentiment has not yet been announced and most industry observers rather see the peculiarities of a wider bull market unfolding, projecting its blockchain innovation on the entire financial market.

‘Are there still any myths left?’

Plenty. But suppose we would like to have at least a general overview of cryptocurrency and blockchain myths circulating in society and mass media. In that case, we must first note that these misconceptions mostly stem from a lack of knowledge and understanding. We aim to reach these people since, for many, these fallacies are the reasons for missing out on exciting investments in new, groundbreaking technology and massive trading opportunities. The latter is especially true if you use reliable and trustworthy financial services. One of them to consider in this industry is the international broker OctaFX.

‘Bitcoin has no intrinsic value.’

Although this prejudice disperses less often nowadays, many critics like prominent gold maximalists, classical stock traders, and lovers of centralised fiat currency don’t pass on any opportunity to regurgitate the same unproven claim of bitcoin having “no intrinsic value”. It became some sort of a hybrid between a never fulfilled prophecy, a running joke, and a mantra for justifying one’s own dismissiveness. Most of these complainers cling to the supposed “double spending” problem of the bitcoin network, which no one has ever demonstrated. After more than a decade of active, exponential growth and adoption of bitcoin and its ecosystem, powered by a worldwide community of developers, miners, traders and holders (or more accurately, “hodlers”), doubters have been proven wrong time and time again.

‘Is FUD real?’

FUD stands for ‘fear, uncertainty, and doubt’ and denotes the idea of being weary of an ongoingly bullish market since the bear is just behind the corner, usually catching most market participants by surprise. This has happened before, most significantly in 2013 and 2017. Not really a myth, but more a bit of advice for people who want to put their hard-earned money into crypto: Every market has cycles, up- and downtrends. If the blockchain market initiates a bearish trend, most critics reappear to make the case that it was a Ponzi scheme all along, while it factually wasn’t.

The reason for this could be, that the technology around blockchain is still not fully understood – which is built and developed on sophisticated cryptography -, or dynamics of basic market cycles are selectively discarded. Even an emotional element of envy cannot be ruled out, especially when following the crypto discourse on social media. Whatever it might be, bitcoin and blockchain, in general, are still in their infancy compared to what’s to come. No wonder the market fluctuates much more than the older, more established financial processes around gold, Brent oil or even Forex.

‘Are there exceptions to the rule?’

Even though bitcoin and blockchain are not, in essence, Ponzi schemes (in fact, the opposite is true), there are undoubtedly individual projects that tarnish the good name of crypto. They act with malicious intent, promising partnerships that never were or launching tokens that have nothing behind them. Usually, the project’s team would attract as much capital as possible into their cryptocurrency while withholding fundamental weaknesses from most of their investors. Once their token or coin reached a certain inflated price threshold, this small group of shady ‘initiates’ would dump the price by selling all their assets, thereby devaluing the whole philosophy behind cryptocurrency.

These unfortunate events where people lose all of their money feed the notion of understanding everything associated with bitcoin as ‘a pyramid scheme’.

This one has been debunked for some time, but only after considerable bitcoin adoption by more and more states, governments, private banks, and celebrities it is now considered a legitimate, uncorrupted store of value in the coming ‘Fourth Industrial Revolution.’

So are there scammers in the social media sphere of crypto, impersonating customer support or popular influencers to access keys or login details? Are there entire developer teams bundled in a crypto project that takes advantage of unsuspecting (and uninformed) investors to enrich themselves short and mid-term by cashing out and leaving these people with worthless tokens, stranded in the crypto desert? Yes, certainly. But these people have always been active in any industry. The wholesale solution and remedy to this phenomenon was and always will be: education.

‘Not your keys, not your crypto.’

That is true. If you hold your crypto assets on centralised crypto exchanges like Binance, KuCoin, or Huobi, your capital is not entirely under your control and is vulnerable to an attack. Although these exchanges became household names in the last years precisely for their persistent approach towards security and stability of services, hacks are still happening at present. It is generally recommended to leave only those funds that you need on centralised exchanges. Everything you hold mid-to long-term, you should at the very least store on an individual hot wallet, a cold wallet, or even a paper wallet for maximum security. Some of these individual wallet apps give the holder complete control over their private keys.

These are the keys that ultimately provide you with ownership of your capital. If you lose them, give them to someone else in the subway, publish them online, leave them as a digital note on your computer connected to the internet, you can lose your funds rather quickly. In layman’s terms, private keys give passage through the gateways to the cryptographical spot in the blockchain where your exact capital is stored. It is essential for you to keep your private keys totally safe—with them, everything stands or falls.

In decentralised finances (DeFi), your independence comes with total responsibility. If you make a basic mistake – like misplacing your private keys – and lose your funds because of it, it will be on you. There are cases when this responsibility splits. If the services you used acknowledge a shared or full fault, then these are the rare times when you have a chance of being reimbursed for your loss, either wholly or at least partially.

‘You never know what to expect with crypto.’

That’s not fully true and depends, again, on your knowledgeability. It certainly doesn’t have to be as elusive as ‘an unopened box of chocolates’. For this…

Read More : Most Popular Crypto Myths Put to Rest by OctaFX

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