Crypto myths and adoption
Good morning/evening
Whilst I am spending time in the UK again, a visit to the parents is a must! But whether it is to do with them being married for 50 years and have nothing to talk to each other about but the TV is on constantly.............For someone who barely watches any TV I do find this really annoying, but I have learnt something. Daytime TV and these consumer watchdog type programmes have all only shown the bad side of crypto, the scams and the failures. So it is no surprise that for the ordinary person they see the whole industry as bad and full of criminals and are discouraged from even doing the most basic research. Bitcoin and crypto has evolved and there are still scams and criminals using it (as there also are with Fiat I must add). So here are a few things people perceive about Bitcoin and crypto that are wrong.
Myth 1
Crypto is only for criminals
Some believe that crypto exists primarily for criminal use. This belief largely stems from the early days where Bitcoin was used on dark web marketplaces. While that did happen, it only a tiny fraction of overall crypto activity.
In reality, blockchain transactions are recorded on a public ledger. This means you can track activity compared with traditional financial systems. Many blockchain analytics firms track wallets and transactions and most users of crypto are trading or investing and using DeFi.
Myth 2
Crypto has no real value
Another common misconception is that cryptocurrency has no intrinsic value. People (including my parents) think that digital currencies are “just numbers on a screen” and therefore worthless. Markets amongst other things, determine value and I have a post about what gives crypto value on the way.
Myth 3
Crypto is completely anonymous
Many people assume that cryptocurrency transactions are totally anonymous and untraceable. In reality, most major cryptocurrencies operate on transparent blockchains where every transaction is publicly recorded and while wallet addresses do not directly display your identity, your activity on the most part can be tracked.
Myth 4
Only for tech experts
Blockchain technology can sound complex,white papers can sometimes be very complex to understand and many people believe that participating in cryptocurrency requires advanced technical knowledge, while it can help for somethings, it is not essential and there are many resources to help you learn. If I can do it, anyone can!
Myth 5
A passing trend
Although we have narratives that come and go in an instant, I believe crypto has proven itself and is here to stay although some may say this or that crash is the end, so far it never has been, in fact IMO that is the perfect time to buy! There are now thousands of tokens (not necissarily a good thing) and yes a lot of those will disappear but generally the good projects and blockchains are here to stay.
Myth 6
All crypto are the same
In reality, the crypto ecosystem is highly diverse and there are many different chains that are built and act differently and are best used for different purposes.Some crypto act primarily as digital currencies used for payments. Others serve as platforms for decentralized applications or smart contracts and Polkadot has parachains, each trying to be unique. This also means that you need to research and understand what you are investing in with each chain.
Myth 7
Get rich quick
Lol if you have been on crypto twitter/X you will see stories of overnight crypto millionaires with their moon token. This can create the illusion that investing in cryptocurrency automatically leads to fast profits. The reality is that you need to research and invest wisely and be patient. The crypto market is highly volatile. Prices can rise rapidly, but they can also fall just as quickly, so like any financial market there can be risks.
To Conclude
I try to avoid watching mainstream news, even that is fake (have a Russian speaker listen to the translations of Putin on UK news.....It is not accurate to what is being said). I also try to not read mainstream newspapers but this was on the table so I read it......Honestly, I expected better from the former UK Prime minister! Yes the Daily fail (sorry Mail).
With only the bad side of crypto being constantly being the main thing people hear, how are we ever going to onboard new users? The institutions are firmly buying crypto now, which does legitimize it to some degree but people do not hear that side and fail to see any potential, yes that includes my parents, who after all these years still think I am doing some sort of computer voodoo! Yes it may not be the easiest to navigate and there are some bad actors, but the crypto world is not really how it is portrayed. Are we really still early in this game? People will never research and separate fact from fiction when all they hear about is the failures and scams. Eventually perhaps this will change and people will see Bitcoin/crypto as the real investment opportunity that it is. What are your thoughts? Do you think crypto will be able to shake its reputation as a scam anytime soon? Have you managed to change someone's opinion on crypto? I often feel so annoyed that all people hear about is the bad side of crypto and have no idea how to change peoples perception!
As always, thank you for reading and please feel free to comment.
