Top 5 misconceptions about crypto shattered

Although the cryptocurrency sector has massively expanded since the publication of the Bitcoin (BTC) whitepaper in 2009, occasional setbacks and deep-rooted myths have turned away many potential investors and prevented the industry’s faster proliferation.

With this in mind, Finbold has assembled several of today’s most common misconceptions about digital assets, along with the facts and details that shed some light on them and reveal why these myths may not be entirely correct.

Myth #1: Crypto is only used for illegal activities

Although the belief that cryptocurrencies are used in illicit activities or even funding criminal organizations isn’t that far from the truth, arguing that this is their sole purpose cannot be further away from it.

In fact, according to Chainalysis’ mid-year crypto crime report published in August 2022, cryptocurrency scam revenue had declined 65% in a year. On top of that, all forms of money, since its origins, have been used in crime in one way or another.

Myth #2: Crypto has no value

While there certainly are digital assets out there that are doomed to fail, many of them have value, although their monetary value can fluctuate over time. As a reminder, Bitcoin was only worth a few cents after its launch in 2009, but it has risen to its all-time high of as much as $69,000 in late 2021.  

That said, aside from speaking about decentralized finance (DeFi) assets in terms of financial gain from selling them, cryptos such as Cardano (ADA), Ethereum (ETH), and Polygon (MATIC) – just to name a few – also have value in their usability and its potential. In short, it all boils down to individual perceptions of ‘value.’

Myth #3: Crypto is a short-lived fad

A lot of sceptics are certain that digital assets are just a passing trend and that fiat money would soon prove its superiority over the novel asset class. However, crypto has already existed for 13 years and has even survived active attempts to ban it, such as in China.

At the same time, other countries are seeking ways to incorporate crypto into their operations, for instance experimenting with central bank digital currencies (CBDCs), and some, like El Salvador and the Central African Republic (CAR), have gone a few steps further and adopted Bitcoin as legal tender.

Myth #4: Crypto is dangerous for the environment

Mining Proof-of-Work (PoW) cryptos like Bitcoin certainly consume a lot of energy, especially since their popularity has grown, but the effect is…

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