Addressing Cryptocurrency Misconceptions

August 23rd, 2018

Addressing Cryptocurrency Misconceptions

Crypto is outperforming almost every other conventional investment at the moment, yet it is still broadly misunderstood and unpredictable because most people do not have the right knowledge. Many consumers buy Bitcoin without knowing exactly what they are doing. One of the most significant myths encircling cryptocurrency is it has no value or even practical application. If you believe all these cryptocurrency prices tend to be driven by the hype, you need to reconsider. As it turns out, almost all cryptocurrencies have lifelong values, and they are attributed to possibly improving or disrupting current industries.

Ethereum

This currency was constructed partly to execute smart contracts. These original contracts come with an unlimited amount of applications. For just one, they can assist in safer dealings, if certain conditions are met. An excellent example was reported within Newsweek in October 2017 when TechCrunch founder creator Michael Arrington bought a $60, 000 residence in Kiev, Ukraine utilizing smart agreements and Ethereum. It may manage contracts between individuals, executing the terms of the contract only if they mutually agreed upon by fulfilling the conditions and terms. This is why ETH has been one of many platforms like that of Bitcoin Exchanges concerning ICO’s. In 2017, $5.6 billion grew up via ICO’s that mainly took place within the ETH system.

Ripple

The focus is certainly on business solutions. Worldwide inter-banking is dominated by SWIFT, which is worth 150 trillion dollar marketplace. Ripple, was created to speed up cash transfers as well as international purchases. Ripple aims to reduce transfer time for you to seconds while also reducing transfer expenses down to 60%. In January MoneyGram, decided to test Ripple due to its higher pace and effectiveness. Ripple had to go through a test run, which perfectly encapsulates the program that meausres inefficiencies of global repayments that not only affect banking institutions but they also impact institutions such as MoneyGram. Only by using a digital resource like XRP that takes up in 3 seconds or even less, they can now shift money quickly once the information is feed.

Tracing the Transaction

Bitcoin may appear guarded and unknown at first glance; however, a business deal stored in its cycle can be tracked back permanently. Consequently, it is wrong to say Bitcoin is anonymous. Bitcoin is pseudonymous and authorities along with other stakeholders have capably identified the theory behind purchasing Bitcoins at the right time. “A Transaction pattern appears to be anonymous”, that’s a firm belief amongst most people, especially the traders, which for sure is a myth that needs to be addressed. There is a severe misconception about cryptos that they are “only” used in money laundering, or other fraudulent activities are not entirely correct. Honestly speaking, these tokens are just like any other trading platforms where risks are associated. The misunderstanding is because the cryptocurrencies are misused or misdealt with by a majority of the people. Because of some of these misconceptions, users become afraid to buy Bitcoin.

The apparent benefit of Bitcoin from Bitcoin Exchanges is the role of  a decentralized foreign currency. What does this mean? It signifies that it can’t be managed by any “one” governing body or tied to a government’s “legal tender.” If the whole government drops, the value of the cryptocurrency just like Bitcoin may likely to be untouched. This advantage may seem to be of no benefit for Americans, however in countries where there is instability this specific decentralization features can impact to a great extent. If you look for the Venezuelan community, they are the ones who may be seeking out Bitcoin due to their nation’s hyperinflation issue, as very first reported within the Atlantic a year ago.

Ignore any false media, Bitcoin is here to stay and in days to come its usage will keep increasing.

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