6 Common Misconceptions about the Crypto Industry

It may feel creepy to even peek into the so-fast-grown crypto world. As common for
us with anything novel in life, there are many legends and rumors already about crypto-
currencies and their nature which roam rapidly among ears. Here we will list 6 of the
most common and fundamental misconceptions about the crypto industry and its
mechanics.

1. It’s Not Secure

Crypto-currencies are a product of blockchain technology. Cryptography, that is,

as in real life, the encryption method used to secure transactions in the blockchain,
allows investors and people to make their assets stay safe and effective. In addition,
many kinds of new ways such as “cold wallets” and various security applications are
also available today. These cold wallets that are not connected to the network can be in
no way an attack and are practically invisible. In addition, there are various security
practices and limit restrictions in the stock exchange, as well as various actions and
practices such as providing an environment of trust to its investor and preventing illegal
activities.

2. No One Can Be Held Responsible

The fact that crypto currencies are decentralized is actually a huge advantage
and the most powerful feature of it. There is no way to decommission transactions that
take place directly between the buyer and seller on the blockchain, eliminating the time
cost. Currently, in the banking sector, where high transaction fees have been cut,
money transfers from one country to another country occur within a day, while in crypto
currencies this time occurs in a mere amount of seconds. Due to the fact that it is not
influenced by any external forces, the determination of prices between the buyer and
seller also reduces the reliability and risk of crypto-currency investments to a minimum
level.

3. It Would Kill the Financial Sector

In today’s world, resources are scarce, and needs are virtually unlimited. And
economics is a branch of science that studies the distribution, production, and sharing
of scarce resources to unlimited needs. In the constantly developing and digitalizing
world, various innovations are coming in the field of economics, and the most important
of them is monetary evolution. Now that we are approaching the industry 4.0 and are
preparing the ground for this, crypto currencies that have appeared as new investment
tools and currencies in these periods that would not have been inflationary in nature; the
change in prices does not affect the values of goods and services. Ever since various
mine resources are slowly decreasing and coming to an end, states and companies are
looking for and working on different investment tools. The fact that investment is the
most important factor in the development of a nation’s economy and plays a big role in
the growth of GDP pushes countries to look warmly at crypto-currencies and work to
issue their very own variations.

4. Transactions Made in Crypto-Currencies Cannot be Tracked

Transactions that occur on blockchain technology are recorded on a distributed

ledger, and each block in which these transactions are recorded is connected to each
other by chains. Although the identity of the person who made the transaction is
unknown, the address used can be accessed and tracked by all users. This is related to
the transparency and reliability of crypto currencies and is one of the most important
factors of reasoning for investors' and people's preferences.

5. Crypto-Currencies Are Illegal and Their Use Is a Crime

This issue, which has been expressed since the first days of crypto-currencies,
is completely unfounded and anonymous. Countries that lead the economy, such as
America, Japan, Germany, South Korea, Switzerland, are constantly making legal
regulations and agreements related to crypto-currencies. Although there is no concrete
statement in any illegal way regarding the crypto-currencies that the central banks of the
countries are also working on, they will be subject to legal regulation and supervision.

6. Crypto-Currencies Are Just a Fad and Temporary

Crypto coins that entered our lives with Bitcoin were born as special
occurrences. In 2021-2022, we see that corporate companies are starting to embrace
these new investment tools and blockchain technology. The future trend is that states
and public organizations will also embrace and internalize this new technology.
Recently The Central Bank of China has finished the study of the digital Yuan, and it’s
begun to be used in many cities already. When taking a cab, taking the subway, or even
buying products from a mobile seller, Chinese citizens make a digital Yuan payment
through the application that they downloaded to their mobile phones. Now this suggests
in reality that cash would almost be not used at all in the not-so-far future.