11 Myths about Cryptocurrency and Blockchain Busted

Earlier in this year, Square made an announcement that now Bitcoin trading is available to almost every user on Square Cash (a peer-to-pee payment application). This shows a sudden change in the crypto market as the major financial technology companies started overcoming the renowned cryptocurrency exchanges.

Instead of volatility of Bitcoin, the craze for cryptocurrencies shows no slowing down signs nor the blockchain (a public distributed ledger technology lie behind cryptocurrency). Though, there are many myths and confusion around Blockchain and Bitcoin so if you are entering in the crypto market then it is quite essential to understand what is going in the market. Witnessing the same, some of the Forbes Technology Council’s members debunked 11 misconceptions about these revolutionary technologies. Read on –

1. Blockchain is Equal to Bitcoin

From the moment, Bitcoin became popular more than blockchain, people started mixing these two technologies. Blockchain helps in making secure transactions in between two parties that are recorded on a public distributed ledger all over the network. When talking about Bitcoin, it is a cryptocurrency that can easily be exchanged in between peers without any intervention of third party, be it a bank or government. (Jeremy Williams, Vyudu Inc.)

2. Cryptocurrency is the Only Application of Blockchain

Cryptocurrency and Blockchain, both technologies work together like jelly and peanut butter. They both are excellent together; however they too work outstanding on their own. Blockchain has not only one use. It is the underlying technology that can be used in almost every industry and business. (Tammy Cohen, InfoMart Inc.)

3. Blockchain Activity Information is not available publicly

The major myth about the blockchain technology is that its information is not available publicly. Most of the blockchain activities are traceable on the contrary to this famous belief. In addition, there are no secrets that are hidden from blockchain and there is no criminology associated with blockchain activities. These are complete myths. (Maria Clemens, Management and Network Services, LLC)

4. Digital Currency Transactions are Unidentified

Most of the people have this wrong assumption that Bitcoin and other cryptocurrency transactions are unidentified. Bitcoin works on the Blockchain which is a public distributed ledger and tracks each information what amount has been sent from a particular address to another. Seeing this, plenty of government organizations have made good terms with renowned cryptocurrency exchanges in order to map the address of account holder. (Thomas Griffin, OptinMonster)

5. Blockchain Have the Capability of Changing Everything Related to Business Transactions

The revolutionary technology, Blockchain is often considered as technology which can completely change the method of managing transactions and business record. However, when compared to the present methods, this technology is much process intensive and quite difficult to measure and even takes time to verify the transactions. As far as security is concerned, Blockchain is very useful whenever there is a requirement of secure verification and transaction records’ immutability. Else, the usage cases of blockchain are limited. (Rajat Mohanty, Paladion Networks)

6. As Virtual Currencies are Volatile, Blockchain might not be trustworthy

One of the common myths that comes from the people that are associating cryptocurrencies volatility with blockchain technology credibility. Blockchain has numerous apps apart from cryptocurrencies and they are a long-term game changer. With most of the earlier technologies, interfaces, content, and initial use cases are mostly overrated; however the underlying technology is completely underestimated. (Wade Burgess, Shiftgig)

7. Cryptocurrencies are Ideal for Crime Activities

There is no doubt that anonymity and decentralization are best features for crime activities; however they also possess exclusive features for citizens that are in politically and economically unstable environment. People, who don’t trust local banks for money owing to the corruption or if nations has destabilizing possibility, then cryptocurrencies are apt places to store cash. (David Murray, Doctor.com)

8. Public Distributed Ledger, Blockchain is only a Storage Mechanism

The biggest myth about the blockchain is most of the people think that Blockchain is only a storage mechanism. However, as per my opinion, the advantage of blockchain comes when blockchain is utilized as exchange in which each transaction includes two parties – sender and receiver. (Stefan Petzov, Swisscom)

9. Blockchain and Cryptocurrency are only for Finance and Technology People

At present, when many high-tech companies like Square are making use of these technologies, so I have a faith that consumer’s unknown fear will surely encourage cryptocurrencies utilization. However, the consumer has basic knowledge of cryptocurrency of blockchain and they are shying away. Peers trust Square, so as per my opinion general public have started trusting these revolutionary technologies. (Meghann Chilcott, OrderInsite, LLC)

10. Crypto Coins and Tokens are same

Blockchain is the underlying technology behind Initial coin offering (ICO) and tokens. Crypto coins possess one utility that is to act as store of value; however, tokens can even store difficult value, such as utility, property, fungibility, and income. Property could be intellectual property or real estate transactions. Tokens have the ability to even capture loyalty points or commodities. (Jeff Bell, LegalShield)

11. Digital Currency Differs Fundamentally from Other Currencies

A lot of hype has been created around crypto and blockchain aspects. First, people need to know, how fundamentally a currency is different from another. It is basically measure of unit and communicating value way. What are the forms of asset that build a new virtual currency? Do smart contracts are prepared in an adequate way to capture asset’s future appreciation? (Winnie Cheng, lo-Tahoe LLC)

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