Crypto MythBusters: What Isn't Real

Cryptocurrency is a hot topic, and just like anything that is shared via word of mouth, there are several myths growing and going around. Some of these myths have been around for a while, and others are relatively new—either way, we are here to set the record straight.

Read on to discover all of the common myths in crypto and watch as we present the facts that will bust them.

5 Common Crypto Myths

1. Cryptocurrency is Only for Criminals

Cryptocurrency is promoted as an anonymous currency, and as a result, many people and governments report that criminals use it.  While there certainly are some criminals who use Bitcoin, this currency is NOT 100% private, and it is not only for criminals!

You read that right: Bitcoin can be tracked, and there are numerous cases of cryptocurrency thieves being caught red-handed due to FBI sleuthing skills. What does this mean? Well, while criminals can use cryptocurrency for transactions, there are far more using cold hard cash which is the only thing more anonymous than crypto. In fact, the majority of cryptocurrency users are regular people and institutional investors.

Related: How to Tell if a Crypto Website is Legit (Complete Guide)

2. Cryptocurrency Can’t Be Traced

Of course, that brings us to myth #2. Cryptocurrency can be traced in most cases. In the early days of cryptocurrency, when no one knew about it, it was far easier to stay private, but that has changed.

Most new cryptocurrency currencies and platforms are 100% traceable due to AML and KYC laws. Even some of the older crypto transactions, like Bitcoin, can be traced back to their owners with a few extra steps. The only sure way to not be traced for using Bitcoin is actually not to use Bitcoin, and everyone knows this—which is why the creator of Bitcoin, Satoshi Nakamoto, hasn’t touched his accounts in decades. The minute he moves a cent, it is likely to reveal who he is.

Obviously, Bitcoin is more private than digital fiat, as the US government right now knows the exact bank account balances of all its citizens, plus their social security numbers with the click of a button(Bitcoin is only traceable using account numbers and following the money trail), but the point is, it isn’t the secret money everyone thinks it is.

There are a few cryptocurrencies which are truly private, like Monero, but these don’t tend to be widely used and accepted as these currencies do not meet AML and KYC policies.

So, the moral of this myth is, if you want to stay 100% private…there isn’t really an option anymore.

3. Using Cryptocurrency is Dangerous

All monetary transactions, whether using card, cash, or crypto, are dangerous. Read that again.

No matter how you spend your money, your transaction is always in danger, and the way we see it, crypto is actually slightly safer to use than the other forms.

When using physical fiat to shop, you risk being robbed and having no way to track the money that is stolen from you. Cash can also be permanently damaged by a flood or a fire.

Using a credit card puts you in danger of having your account hacked or your information stolen in a breach. When these things happen, your entire identity could be stolen, leaving you broke and with a bad credit score for years while you try to get it figured out in the US court system.

Plus, if you have fiat from a warring country, a collapse could make every cent you own worthless overnight.

If you decide to use crypto, you could accidentally send it to the wrong address with no way to access the person. Blockchains can also be hacked, just like the company storing your credit card information.

As you can see, any method of using money is dangerous, it just comes down to what danger you want to expose yourself to. Personally, we think crypto is the most secure forms of shopping there is since it can’t be affected by greedy governments.

4. Crypto Will Never Be Accepted At the Store

News flash, cryptocurrency is currently being integrated into our financial system, whether you like it or not. Just read the news, where you will see entire countries adopting crypto as legal tender, as well as the SEC approving Bitcoin ETFs. While full integration isn’t here yet, it’s coming.

This brings us to the next point: you can currently spend your Bitcoin anywhere where Visa cards are accepted, thanks to cryptocurrency credit cards like the ones offered by crypto.com. These cards aren’t technically spending your crypto, but the card allows you to hold crypto, and it will sell and covert it to cover charges you use it for—basically allowing you to pay almost anywhere with crypto.

And honestly, we think the options in this area will only get better from here!

Related: Why Does the World Need Cryptocurrency?

5. Cryptocurrency is Unregulated

We aren’t really sure why this myth is still around. At the beginning in 2009, cryptocurrency was unregulated, but that was over a decade and a half ago. Currently, cryptocurrency is regulated by several governments around the world.

We think the confusion comes from the fact that cryptocurrency isn’t government-backed. For example, most cryptocurrencies are owned and produced by private companies or people. Others aren’t owned by anyone, making them decentralized. Either way, while these cryptocurrencies aren’t backed by the government, the government sure makes sure they're somewhat regulated.

While the regulations vary from country to country, most cryptocurrency is taxed, and individuals buying and selling it must follow local currency and trading laws (aka KYC and AML in the US). Obviously, some criminals work around these, but then again, they do the same thing with the laws about fiat currency.

Basically, criminals will be criminals no matter what currency they use. So don’t let that lead to lies and myths about it being unregulated!

Overall, we hope this has helped clear up some of the most common cryptocurrency myths. Of course, it is still up to your personal choice whether you want to use cryptocurrency or not—just know that it is spreading in adaptation and becoming a big part of society, whether or not you decide to participate!

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