If you’ve ever regretted over not investing in cryptocurrencies, it is a must that you know it wasn’t really a big deal. It is obvious to feel bad when you read articles where Bitcoin is said to be the currency of the future due to its “decentralized” characteristic. In reality, such statements only look good on paper. Would you digest the fact that the government would let a currency rule the realm which can’t be controlled or traced? Well, we don’t think so.
Similarly, if you look back at 2009, when there were not as many cryptocurrencies compared to the present when the internet is crawling with these.. So, what is the matter with blockchain? Does this world really need these many cryptocurrencies?
Unfortunately, there’s no finite answer to the questions above. Although, Bitcoin has been the showstopper of all the fancy named currencies out there. The foremost reason for it is that Bitcoin never fell off the ramp and managed to survive almost every odd of the crypto market. But, does it make Bitcoin reliable enough to invest? Well, if you look at the cryptocurrency facts and Bitcoin statistics, you might find a part of your answer. For now, let’s take a look at the facts that are unclear and make us doubt cryptocurrencies despite all the success stories
1. Numerous currencies:
If they say Bitcoin is the future currency then what these other thousand currencies doing in market! Every currency is having its value that goes up and down but why do they exist? The answer is simple, they exist because there’s no guideline or monitoring authority in creating new currencies. Anyone can create his own currency and float it into the market with a little knowledge of online marketing. There are many platforms that still support blockchain advertisements. If Bitcoin was the super successful currency to rule future, why would you need more such things. Also, how would you react if you come to know that your Govt has passed 200 more currencies with different values? Sounds dubious, right!
2. Fraudulent activities:
With surge in cryptocurrencies, an incline is also observed in fraudulent activities. The number of fake exchanges and fraud ICOs took over the market many times. Prodeum, a very new currency managed to raise $11 in its ICO and vanished from the crypto market, replacing its website with the word “*enis*”. The fraud cases aren’t confined to just ICOs and exchanges, people with ill intentions have also played big roles in embezzling hard-earned money of innocent new users. So, another cryptocurrency fact is that being decentralized is not always a boon, it could be a curse too when you can’t trace your money.
This is the only warning that cryptocurrency shows you voluntarily. Bitcoin and other digital currencies are highly volatile. You can’t predict its future value and these thousands of dollars-worth currency may become zero in value the next moment before you think of encashing it. So, what makes people invest millions in such ventures? It is volatility again. If something is vulnerable to go zero, it also has the power to reach high. If you’re new to digital currency, I would suggest you not to start with more than a double-digit investment and learn the process first. You never know when the motivational success stories can transform into something eerie. Don’t let the cryptocurrency myths drive your investment plans.
4. Low acceptance:
You are well aware of the fact that Bitcoin is nearly a decade old cryptocurrency. But, what about its acceptance? Can you go and buy groceries in exchange? I know you’re thinking of first encashing and then go buy, but what is over the counter value at most of the stores? It is nil. Also, many countries have put ban on almost every cryptocurrency and many are working towards it. It is clear that no country would want a big chunk of their economy to go out of their system. Especially when you can’t get it back if the crypto market falls.
5. High energy consumption and transaction charges:
As you know that cryptocurrencies are mined by solving some critical mathematics that only computers can solve. Also, to solve such math problems, these thousands of computers must run round the clock. It sums up to wasting as much energy in creating one Bitcoin a house would use in a week. Not just that, if you successfully earn a Bitcoin, there’s good amount you pay while transferring it to your different wallets. If you deduct the amount you’ve spend in electricity and transferring, you would certainly rethink before mining any cryptocurrency.
Taking everything into account, it can be observed that cryptocurrencies is more of a game of solid luck than a trade. It is also observed that people are trusting these “success stories” where they hear that someone has become a millionaire by investing in Bitcoin. They don’t seem to validate the cryptocurrency facts and follow the rat race. If you’re considering investing in any cryptocurrency believing that it would make you rich in near future, you must reconsider and decide with your discretion. There are myriads of cryptocurrency myths that make you believe on its decentralization benefits in this crypto market. If you wish to share some more facts about cryptocurrency, do let us know in the comments below.
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