DeutschThere are still many myths about Bitcoin and other cryptocurrencies. We have explained the five most widespread myths about cryptocurrencies.
Myth 1: there are Only a few Cryptocurrencies
One of the biggest myths about cryptocurrencies is the belief that there are only a few cryptocurrencies. First of all, it is quite understandable that many consumers believe that there are only a few cryptocurrencies. After all, the media usually only reports on Bitcoin or a maximum of three other well-known cryptocurrencies. Nevertheless, it is a myth, because in addition to Bitcoin, there are now more than 1,100 other digital currencies. These are also referred to as altcoins, as they are intended to be an alternative to Bitcoin.
Myth 2: Cryptocurrencies Have Real Value
It would be nice, but this claim is simply completely false. Cryptocurrencies actually have no intrinsic value, especially since they are only transaction numbers or data records anyway. Bitcoin, for example, is nothing more than a data record in the blockchain or a block that is represented by the coin. The value of Bitcoin and the numerous other cryptocurrencies is based exclusively on supply and demand. If, for example, nobody wanted to buy Bitcoin, it would have no intrinsic value and would probably be listed at less than one cent.
Myth 3: I Can Already Pay with Bitcoin in many Stores
Although it is repeatedly reported in the media that some larger companies now accept payments via Bitcoin. This is true, but on the other hand, it cannot be said that there is a high level of acceptance. Currently, for example, less than one percent of all companies and online shops in Switzerland accept payments with Bitcoin or another cryptocurrency. Consequently, it cannot be said that Bitcoin can already be used for payments on a broad scale.
Myth 4: Cryptocurrencies are a Temporary Trend
Strictly speaking, one would have to wait a few more years to present this claim as a myth. In fact, however, hardly any expert believes that digital currencies are just a temporary trend that may no longer exist in two years’ time. One reason that speaks against this assumption is the technology behind the cryptocurrencies. The blockchain, for example, is now used not only for digital currencies, but also in other industries and is expected to be used frequently as a technical basis in the future, especially by banks. Consequently, and for other reasons, it is very unlikely that you will no longer hear anything about cryptocurrencies in a few years, even if they are completely banned in some countries.
Myth 5: Bitcoin Can Only Increase in Value
The assumption that Bitcoin can only increase in value in the long term is primarily based on the fact that its number is limited. There can be a maximum of 21 million Bitcoins, so the myth is based on the fact that at some point demand will continue to rise in relation to supply. In fact, however, Bitcoin can of course also fall significantly in value, as the beginning of the year has already shown. After all, supply and demand are always responsible for whether the Bitcoin price rises or falls. Therefore, it should definitely be seen as a myth that the value of Bitcoin and that of any other cryptocurrency can only increase – even in the long term.
Conclusion on the Myths about Cryptocurrencies
As you can see, there are some myths about cryptocurrencies. Some really remain in the realm of fantasy and others are quite justified. It’s like always in life: In the end, you have to deal with the topic in more detail, read up on it and find out more. This is particularly important when it comes to cryptocurrencies, as there are still many black sheep moving around in this market who want to take advantage of the ignorance.
