5 Common Myths About Cryptocurrencies in 2023

The crypto industry has faced several challenges since it came into existence in 2009 with Bitcoin. Many things have been said about it, some true and some false. However, most of the perception about crypto has been negative.

This has led to many people staying away from  it, even in 2023, especially mainstream investors. It is the same reason that governments around the world are wary of cryptocurrencies, believing that it is an industry that is fraudulent.

This isn’t entirely fales either, because the crypto industry has been full of fraud since crypto assets started becoming valuable in the eyes of the public. Hacks and attacks also abound, making it difficult to convince anyone to enter the industry.

It is against this background that many myths are now flying around about the crypto industry. If you have any interest in the crypto space, you must have heard some of these myths. Here are the most common ones.

Crypto has no intrinsic value

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One of the arguments the government in many jurisdictions have put forward for placing a ban on cryptocurrencies is that they don’t have any intrinsic value. This is an interesting argument, because even the U.S. Dollar has no intrinsic value.

Before now, every dollar was backed by gold, but not anymore. It is therefore unreasonable to say that crypto assets have no intrinsic value, as though fiat money which is used officially, has any intrinsic value.

In addition, cryptocurrencies have certain use cases attached to them. For example, Ethereum is a platform for building decentralized applications and smart contracts, and the token ether is used to pay for gas and other fees. Ether therefore cannot be said to be without any value.

Cryptocurrencies are used to commit crimes

Another common argument for why cryptocurrencies should be banned is that they are used for illicit activities such as drug trafficking and terrorism financing. While it may be true that some people are using cryptocurrencies for these illicit purposes, such crimes aren’t limited to cryptocurrencies.

U.S. dollars as well as any other fiat money in the world has and can be used for illicit activities. This invalidates the argument as cryptocurrencies are a neutral technology that depends on who uses them. 

Anyone can use them for noble purposes, as well as illicit activities, so to say that they are used for illicit activities is inaccurate, to say the least.

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Cryptocurrencies aren’t secure

Cryptocurrencies are built on blockchain technology. This is a distributed ledger technology that eliminates centralization and removes the control of the system from any single individual. As a result, cryptocurrencies are the most secure financial technology in the world.

The argument of crypto insecurity lies in the way individuals handle them. For example, a crypto owner who allows others to access his wallet’s private keys is likely to lose his assets. This doesn’t mean that cryptocurrencies are intrinsically not secure, it means it can be exposed to risks if carelessly handled.

Cryptocurrencies are bad for the environment

Some crypto assets such as Bitcoin that use proof-of-work consensus algorithms require mining, which is an energy-consuming process that those against crypto argue has a negative impact on the environment. 

This is another invalid argument because Bitcoin, or any other PoW cryptocurrencies can be mined using energy from any source. In fact recently, more mining farms that use green energy have become common, which nullifies this argument.

Cryptocurrencies will die

Many “prophets of doom” have predicted the death of Bitcoin many times, especially at times of bearish dominance. However, the cryptocurrency hasn’t died till this day. Same goes for any other cryptocurrency with real world use cases.

Some crypto projects have of course died, but only because they couldn’t compete with others. However, cryptocurrency as an industry has been around for nearly 15 years, and is consistently growing in popularity, making it unlikely that it will die.

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