The word “cryptocurrency” alone sparks debates, skepticism, and sometimes outright confusion.
For some, it’s the future of money; for others, it’s just an elaborate digital experiment.
Then come the crypto myths, they’re bold, sweeping claims that paint crypto as either a dangerous gamble or a secret tool that only super tech-savvy people understand.
But is that really the case though? Well, there’s still a lot of misinformation about crypto that’s up in the air, and it really shouldn’t be.
To a degree, the importance of digital finance is still fairly new (well, newish), and with that, crypto has got to be mentioned too.
So, with all of that said, here’s exactly what you need to know!
1. Cryptocurrency is Only for Illegal Activities
“Isn’t crypto just for hackers and criminals?” This one gets overdone a lot!
Well, some crypto myths have stuck around since the early days of Bitcoin, mainly thanks to its association with dark web marketplaces.
But the reality couldn’t be more different. Sure, maybe at one point in time, there was that association (and maybe a bit of truth), but it’s seriously not like that anymore!
Actually, cryptocurrencies are actually some of the most traceable forms of money out there.
Why? Because every transaction is logged on a blockchain, a public ledger that anyone can access.
There are even tools like the World Chain Block Explorer that allow you to follow the money trail, verifying transactions down to the smallest detail.
Besides, crash is still the preferred currency for dodgy dealings since it’s a lot harder to trace (and everyone carries cash in their wallet).
But believe it or not, law enforcement has been using blockchain technology to crack down on illegal activity. So, instead of being a tool for secrecy, cryptocurrency’s transparency has made it an unlikely ally in fighting crime.
2. Crypto Has No Real-World Uses
If you’ve ever heard someone dismiss crypto as “funny money,” they’re missing out on its growing list of real-world applications.
There are crypto millionaires out there, and it’s all because they knew their worth beforehand.
But anyway, in some parts of the world, people are buying their morning coffee, paying for streaming services, and even purchasing property with cryptocurrency. It’s not just a concept; it’s being used in day-to-day life.
But beyond payments, the technology behind crypto (the blockchain) is quietly transforming industries.
For example, healthcare providers are using it to store patient records securely.
Some charities are slowly beginning to adopt crypto for faster, cheaper, and more transparent donations.
If that sounds niche, consider this: entire supply chains are now tracked using blockchain, ensuring products are sourced ethically and sustainably.
It’s a lot to take in, but overall, this is getting more normalised.
Read 16 Biggest Challenges When Companies are Committed to Sustainability
3. Cryptocurrency is a Get-Rich-Quick Scheme
There’s the dream of turning a small investment into millions overnight. Now sure, it’s tempting to think crypto is your ticket to easy money, especially when stories of early Bitcoin adopters are everywhere.
But for every tale of someone buying a yacht with their crypto gains, there’s another of someone losing their savings chasing the hype.
Crypto markets are unpredictable. Prices can swing wildly in a matter of hours, let alone days.
The people who see long-term success in crypto are often the ones who research, diversify, and treat it as a high-risk investment, not a lottery ticket.
So, overall, just jumping into crypto with dreams of instant wealth is like diving into a pool without checking if there’s water, it rarely ends well. Honestly, it’s about learning the ropes, but yes, scams can still happen.
4. Cryptocurrency is too Complicated
Is crypto only for tech geniuses? Well, no, not exactly.
It’s a common belief, but it’s also outdated. Yes, there’s some technical jargon, blockchains, wallets, mining, and so on, but you don’t need to be a programmer to get started.
Crypto platforms have become more user-friendly, with intuitive apps and straightforward guides for beginners.
Actually, even managing a crypto wallet is no harder than setting up an online shopping account. If you’ve ever transferred money via your bank app, you’re already halfway there.
There are a lot of easy-to-understand platforms out there like Coinbase for example.
Read 3 Digital Marketing Tips to Attract Cryptocurrency Newbies
5. Cryptocurrency is Bad for the Environment
This one’s tricky because it has some truth to it. Alright, so Bitcoin mining, for example, does consume a lot of energy, and that’s a genuine concern.
But assuming all cryptocurrencies are environmental disasters is like saying all transportation is bad because of old diesel cars.
But thankfully a lot of newer cryptocurrencies use greener methods. Plus, there’s a growing push within the crypto community to adopt renewable energy for mining.
