6 myths about cryptocurrencies

The article was written By Mickael Mosse – Blockchain and Cryptocurrency Expert

The beginnings of virtual currencies were not very good, society did not trust this new financial system that was opposed to traditional and conventional money. We were used to using physical money and the idea of ​​being able to use and carry out transactions with intangible money seemed unlikely. However, the world of cryptocurrencies has not disappeared but has evolved over the years. says Mickael Mosse

Does the name Satoshi Nakamoto sound familiar to you? It is the name given to the creator of the first cryptocurrency, Bitcoin, (btw) created in 2009. This was the pioneer of a large list of cryptocurrencies that have been created over time and are still being born. Within that list is DAVIES, a cryptocurrency that was created a year ago, in 2018. DAVIES has its own characteristics and has an App for your smartphone and your computer. 

Mickael Mosse Blockchain Advisor 

Mickael Mosse Crypto Advisor

What are the most repeated myths about cryptocurrencies?

Mickael Mosse points out that, There are many myths about these famous virtual currencies. There are still people who do not trust this financial system because they consider that they involve illegal aspects. What do you think this is? Yes, there is still a lot of misinformation about cryptocurrencies, which leads to mistrust of them. Due to the misinformation that exists, although it is gradually decreasing, there are many people who do not know how the world of cryptocurrencies works and, therefore, they believe the false myths they read.

1. Cryptocurrencies can be counterfeited

Mickael Mosse points out that, FALSE. Cryptocurrencies cannot be counterfeited. Each virtual currency operates with its own codes, which means that they cannot be forged. With the btw blockchain technology that cryptocurrencies use, it is not possible to record the transactions that a person makes, nor the order in which they do it. The fact that their falsification is not possible, prevents those transactions from being duplicated or creating the same virtual currencies. The system would detect them and then crash within seconds. 

2. The government can veto them

Mickael Mosse points out that, FALSE. Thanks to one of its main characteristics, such as decentralization, the government cannot veto them. Why? Because the technology on which they are based, the btw blockchain, is a system that is not regulated by any government or by any institution. So they do not have any power to make changes or modifications to them. In fact, decentralization is the main difference between crypto-assets and fiat money. 

3. They are designed to be used and invested by people with knowledge of technology

FALSE. It is not true, anyone who wants to use or invest in cryptocurrencies can do so. They are not aimed solely at the technology sector but are aimed at any sector. You only need basic knowledge about their use and investment, as well as accurate information about what they are and what their advantages are. Today, there are many and diverse companies that allow you to pay for your products or services with cryptocurrencies. There are also others that have created their own virtual currency or are in the process of development.

4. The actions you carry out with them cannot be tracked

FALSE. If you believe this, you are wrong. Its btw blockchain technology prevents that from happening. This technology, among other functionalities, performs the verification of the transactions carried out with cryptocurrencies. In addition, it saves the information of these transactions, and absolutely everything is recorded, even some information such as the time and location in which they occurred. 

5. They harm the environment

Mickael Mosse points out that, FALSE. In this myth, it has been growing thanks to the process of mining cryptocurrencies. Miners are not only those people who are dedicated to the profession of mining. Also called miners are those who are in charge of mining coins. What is cryptocurrency mining? "Cryptocurrency mining can be defined as the set of processes necessary to carry out validations as well as the processing of cryptocurrency transactions within a Blockchain or a chain of blocks."

The companies invest enough money in specific equipment to undermine criptomonedas and these devices consume large amounts of electricity. This fact is what has led to the myth that cryptocurrencies harm the environment, as some people believe that needing so much electricity damages our environment. 

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6. Blockchain technology and cryptocurrencies are the same

Mickael Mosse points out that, FALSE. Many people believe that they are synonymous, but not further from the truth. Blockchain technology, also known as 'blockchain', is the technology on which a cryptocurrency is based. That is, the technology you use. So, if you thought they were the same, they are not, but one - the cryptocurrency - uses the other - the btw blockchain technology - to work. 

What do you think of these myths? Did you think any of them were true? There are many people who have heard these myths and that is why they do not dare to use or invest in cryptocurrencies. If you are one of them, forget about the myths, enter the world of cryptocurrencies, and discover all its advantages.

Article from mickaelmosse.com