Bitcoin Forum

What do you think is the biggest misconception people have about cryptocurrencies, and how would you clarify it?

Biggest misconception is cryptocurrencies can help people to get rich, after one sleep, one night and it's super easy to be rich in cryptocurrency market.

There are other misconceptions in this space but if you want only a biggest one, above is.

Some more
Top Bitcoin myths (https://www.investopedia.com/tech/top-bitcoin-myths/)
Biggest Misconceptions About Crypto: Hear From Our Compliance Experts (https://www.binance.com/en/blog/community/biggest-misconceptions-about-crypto-hear-from-our-compliance-experts-4913105047561137885)

Some misconceptions that some people have is that investing and Hodling any cryptocurrency can make them rich.
Correction: Not all cryptocurrency should be invested in, care has to be taken in choosing what to invest in. Bitcoin is always the recomended because of it track record and reputation.

Another is that their one time investment in cryptocurrency say bitcoins without follow up investments is enough to bring them wealth.
Correction: Investing ones in bitcoins is not enough, to get the best from bitcoins, we need as much bitcoins as we can keep, and the best way to get enough bitcoins is to continually invest regularly.

One of the most common misconceptions regarding cryptocurrencies, in my opinion, is that they are anonymous. Although several cryptocurrencies are made to offer some degree of anonymity, they are not totally anonymous. On a public blockchain, every transaction is logged and linked to the wallet address of the user. To be clear, cryptocurrencies aren't totally anonymous even though they can provide a greater level of anonymity than conventional financial systems.

"the misconception about cryptocurrency is that many people think that cryptocurrency is a ponzi scheme and when no one else invests in it, then its value is zero."

and i have to get this straight, that the gold that people consider to be of high value is just an ordinary stone, what makes it expensive is its rarity and the high demand that people have for it. if no one invests in it then its value will also drop significantly and could be zero.

likewise with cryptocurrency, it is not a ponzi scheme because the goal is clearly for investment or payment. the economics are clear, there are miners/stakers, buyers, sellers, etc., so it can't be called a ponzi scheme as people say.

Especially with altcoins. I can see some altcoins that fell more than 20 times in the bear market. If someone fomo at the time and buy and be losing 20 time more of the money invested, it will not be easy. Altcoins are very risky.

Sometimes, you will invest, the coin will first drop in price and annoying. Even bitcoin may first fall, not increasing for awhile before bulls will start buying.

This is true. People that are using IP address directly will also think of that but which is wrong. There are some things you have to do before you can be anonymous while making transactions.

This is bitcoin discussion board and I will like you to be more specific about the cryptocurrency in question which i believed to be nothing than bitcoin.

To the misconception people have towards bitcoin, we can take the approach of bitcoin being a means of digital scam and or an abhord for money laundering as believed by the governments and some other people who don't have the understanding behind the creation of bitcoin.

Following the DCA technique would really help in accumulating a good number of bitcoin without breaking a sweat because the actual reason some people are scared to acquire more bitcoin is because they feel it's quite expensive to buy now, but with DCA method that's settled.


Like the use of mixers right ? ;)

Since coming to bitcoin (crypto), I have to admit that I myself have had misunderstandings with it from the early days, like:

- Bitcoin fuels criminal activity (money laundering, payment of banned substances,...)
- Bitcoin is a multi-level Ponzi scheme.
...
But in general, it is all an assessment based on a limited understanding of Bitcoin, all positive/negative issues associated with it are. All by ourselves. For example, the story of promoting crime :) Yep, if there was no Bitcoin, crime would still exist and people just like to exaggerate the problem to say that it is risky for many people. I once raised the issue that $ is also a much bigger tool that criminals use. And the core issue is that people use it for their own purposes. Every tool can bring different aspects to serve us.

I also have many friends who are exposed to bitcoin, but sharing the same knowledge with it to express is really rare. With this forum, I learn more than external things (personal opinion). Actually, I used to think a lot about bringing accurate information about Bitcoin for people around me to understand, but after many processes, I realized that I should let them find out for themselves the way they are learning everything in life. There is no need to impose anything, we can know whether it is good/bad for anyone.

I'd say that a thing requiring clarification is when people use 'cryptocurrency' and 'Bitcoin' interchangeably, and then apply what goes for Bitcoin to cryptos in general. And then this confusion leads to misconceptions about cryptocurrencies. Bitcoin is a cryptocurrency, but, as we know, there are plenty of others. Bitcoin is a relatively safe investment, it attracts serious investors, it is very decentralized etc. But that doesn't hold for cryptos in general. Some are more or less popular, volatile, or centralized than others. So assuming that cryptos are a relatively safe investment in general or that they're all decentralized are big misconceptions because Bitcoin isn't like the rest of cryptos.

I think people who think that it's a get rich quick scheme. Just right now, I have a convo with my wife and she says that someone is trying to borrow money, a friend of her and says that he need crypto as she needed to finished some task? before she  can get her crypto.

So I said that it could be scam if that is the case. I haven't talk to the lady as I don't know here. It was just a friend of my wife who she teaches some side hustle and perhaps it's very slow to her that's why she goes into crypto thinking that he can earn money very quick. But from the sounds of it, she could have feel victims to scams already.

Good artcile to read. Thanks

I was there when Bitcoins' value around $1500. I was stupid not to buy bitcoin but bought some altcoins.

You got a point.

I still think that the biggest misconception is that BTC and crypto in general are used mostly by criminals. And people still believe it when 2 countries made BTC a legal tender!

I think there aren't many misconception when it comes to cryptocurrency aka altcoins, maybe it's about "cryptocurrency is decentralized" this is wrong since most of cryptocurrency are centralized. Unfortunately many people can't differentiate between decentralized or centralized, when they read a project wrote "decentralized" terms., they believe the project is decentralized.

Similar like people who describe they invest in Bitcoin because of decentralization, but they hold their coins in Binance.

I think the misconception some people have about cryptocurrency is that it is a get-rich-quick thing. While there are people who are under the misconception that you can lose everything in cryptocurrency, but I think both are right in their place because if you go with the best strategy, and choice you can make a lot of money in crypto. On the other hand, your wrong choice and bad strategy can waste all your money.

So the misunderstandings on both sides should be removed. We can earn good profit from crypto currency, but loss should also be kept in mind.We may lose everything, but our good decisions can turn it into profit. Thus, different people may have different opinions and misunderstandings, there is no one thing that is common to all people.

One common misconception is that all cryptocurrencies, like Bitcoin, are anonymous. In reality, while transactions are pseudonymous, they can often be traced, and privacy features vary among different cryptocurrencies. I think that’s why many people are still getting their crypto hacked or lost.

Another misconception is that cryptocurrencies are solely used for illegal activities. While they have been associated with some illicit transactions, the majority of cryptocurrency usage is legitimate, with growing acceptance in various countries!

The biggest misconception about cryptocurrency is that people think cryptocurrency is a get rich quick scheme. That's why criptocurrency is our more used as an investment rather than a currency system. I have seen people in 2017 rushing towards cryptocurrency to get rich quick. Some of my friends have even used their credit cards to buy cryptocurrency. So I believe this is the biggest misconception here in the crypto market.

It is a great investment and there is no doubt about it. But it cannot make you rich overnight. In order to make money from cryptocurrency you need a stable source of income where you can average out your buying price. Pretty similar to any other investments.

The biggest misconception about crypto currency has been it's a get rich quick scheme, people often thinks that they will become millionaires overnight and this is one of the biggest reason why people lose money on crypto currency and end up hating crypto and creating fud.

The second biggest misconception about crypto is that people still thinks that whichever coin are prices lower has chances of giving huge returns as they have zero knowledge on the facts like market cap, total supply.

Biggest misconception? People assume cryptocurrencies are a a passing trend. Wrong. They're revolutionizing finance and money thinking. Bitcoin symbolizes financial independence, not simply digital gold. No, it's not simply about profit. Independence, decentralization. However, it won't solve all financial problems. Though powerful, it's merely a tool. On the technological side, some think cryptocurrencies are insecure or fickle. Though volatile, markets are for you. Blockchain is a stronghold for Bitcoin security. Complex algorithms and a decentralized network make tampering nearly impossible. Secure, decentralized finance is already a reality, not just tech talk.

Some of the biggest misconceptions include that Bitcoin/cryptocurrency is:
- a tool used primarily used by criminals or in the dark-web
- a scam/ponzi scheme/pyramid
- not valuable outside of market speculation
- not useful or has no use case outside of gambling on the market
- will only lead to losing money

These are some of the things I have heard first hand from people, and unfortunately they have either learnt this from the mainstream media, or from experiences that have negative bias, from those who entered the market at highs and lost money at lows.

With no official press crew, Bitcoin will always be faced with misconceptions or fear, uncertainty and doubt (FUD), it is up to us to validly disprove these untrue accusations and claims.

Theoretically you can get rich overnight if you invest most of your money into hype crypto just like this token, imagine you bought Recursive Doodinals with all money you have, you're already learn 11x of your initial capital. Of course no one knows if this token will pump a lot and there's a chance you might lose all of your money when the project is exit scam or failed.

https://imgvb.com/images/2023/12/27/50c9dea5c8514813f22a29e126fd957c.png

In this particular misconception, I can say people are just misunderstanding privacy and anonymity of cryptocurrency while both terms may seems similar, they are not entirely the same and if people can pay attention to their differences, this misconception would be a thing of the past. Privacy refers to the ability to control how your information is shared with others and anonymity on the other hand, refers to the ability to remain completely unknown. In the case of cryptocurrencies, it can provide privacy in the sense that it allow users to control who has access to their transaction data but however, they cannot provide complete anonymity since the data is still visible on the blockchain. Although, it's worth noting that the user behind the data is anonymous but the data is not.


With no doubt, this has been the biggest misconception about cryptocurrency because many people right from the inception failed to realize that cryptocurrency is a long terrm investment and it's not something that's going to make you rich overnight. If you're looking to make money quickly then, crypto is not the right investment for you. But if you're willing to be patient and invest for the long term, crypto can be a great way to build wealth over time.

I think we are all in agreement when we say the biggest misconceptions about cryptocurrency is the “crypto can make you rich overnight” myth. It is the most common misconceptions that people have and many have invested in cryptocurrencies (bitcoin and altcoins) with the intention of making their money back in tenfold.

Another misconception that is also popular is “Bitcoin is a scam”. I think this narrative comes after the first misconception has taken its course. People feel crypto is a scam because they did not get the immediate results they hoped for after investing, some even lost their funds investing in altcoins. Another set of people who believe this myth do so not because they lost money to alts or trading but they blindly believe the negative news they read about bitcoin on the internet without fact-checking.

I concur, people think that way that's why they immediately invested in it without hesitating, and when they realize that their belief is not real they will put their investment to a loss. We can't deny that all of us are here for money but we shouldn't focus on that to achieve our goals. We should concentrate on learning about cryptocurrencies and continue to study on a daily basis to stay updated. If we do so, the thing we desire will come after, and it will continue to accumulate more than we thought.  

One common misunderstanding revolves around the idea that Bitcoin is a quick way to get rich. Many newcomers to cryptocurrency often receive misleading information, often from those who introduce them to the concept. Additionally, certain influencers on platforms like YouTube and Twitter boast about making huge profits overnight. For someone new to this, seeing these claims might create a temptation to jump in hastily, risking potential financial losses. It's important to stress that cryptocurrency investments come with risks, and it's essential for beginners to approach the space with caution, conduct thorough research, and avoid being swayed by promises of instant wealth.

Misconception: Cryptocurrencies are used to finance terrorism and other criminal activities.
Correction: Just like other currencies, cryptos could be used for unwholesome activities. But using cash fiat will be more suitable for criminal activities than crypto. Cryptocurrencies can be traced to specific wallets but cash fiat cannot be tracked.

Misconception: Bitcoin and other cryptocurrency transactions are anonymous.
Correction: Bitcoin is pseudonymous which means that transactions on the Bitcoin network/blockchain are visible and traceable.

The biggest and the most use misconceptions about bitcoin is that it is a get rich quick scheme. This was the first thing I also heard about bitcoin but after extra learning and reading about it, I can to realise that it actually can make you rich but not immediately. It takes patience, sacrifice and perseverance to make that happen, if it happens, you’ll enjoy for the broken days you’ve passed through. It is worthwhile to make a saying that bitcoin is just an alternative to traditional banking system and not a means of enriching yourself. If that is done, anyone coming into it will now go deeper to understand and find a way to tap on other means that you can benefit from bitcoin.

They think it is a scam, a fraud, a quick way to make money, a scheme to get rick overnight, they need a huge investment to start in crypto, crypto is for experts only, etc. There are many other misconceptions in people's minds that I have heard from there own mouths. Like whenever I talk about crypto among my fellows they don't show interest and always come up with some misconception as an accuse to avoid this topic.

And I always try to solve these misconceptions they have. But at the end if they have no interest then what we can do in that case? Educating those who have misconceptions about BTC and crypto, is the only way to clarify them. Because once they have the knowledge they can process things on there own, they can make their own decisions based on the knowledge base they have. They can grow faster otherwise they will be at lose and end up declaring BTC and crypto as scam and fraud.

I think the biggest misconception is that many people don't know the difference between Bitcoin and Altcoins. They treat all cryptocurrencies as the same. Due to lack of proper knowledge, many people invest in altcoins and blame in the name of Bitcoin. Another common problem is that they think cryptocurrency is a get-rich-quick scheme. Many investors dream of getting rich overnight. Many people are encouraged to invest with such misconceptions, which must be properly understood. Many people have got high returns by investing in cryptocurrencies, it cannot be assumed that everyone will get high returns here. But for those who understand well and plan for the long term, crypto can certainly give good results.

the major misconception I know most beginners have is that they think investing in cryptocurrency will guarantee financial freedom within a twinkle of an eye and most of them don't even know the right cryptocurrency to invest in.

The clarity is that although investing in cryptocurrency could increase you invested funds, it's not aimed at guaranteeing you freedom financially, and knowing the right cryotocurrency to invest in is very key as it is very possible to hold on to the wring cryptocurrency and get nothing out of it in return, bitcoin has gained the trust of the populace and has been consistently increasing at reasonably speculative way so investing in bitcoin could be the best form of investment as it patterns to anything crypto investment.

Yes it's possible, but the probability of losing their funds if they invested in that coin is around 80% to 90%. Why? Imagine investors who really have knowledge in investing crypto encounter loses. Maybe they only invested on top coins as they know that it has higher rate of success that it will be doubled or quadrupled the price. How much more if a newbie invested into a newly launch coin who really don't know any information from them. It's easy to lose in crypto than to make profit.

One of them is also the aspect that many people think and believe all coins that have been done 2–1000 times also have a higher possibility of doing more. I have seen many people who believe that the only coins that they invest in are those that have been done 2 times and above, and the hype is still very high. That's why they always want to invest in those coins with the hope that when the pump happens next time again they will be able to make some profit from the investment.
 
They forget that after a price pump like that, the coin might take some time to see another upward movement, so some after that experience some price dump, and most of them never see their ATH again after the drop, and this keeps most of the newbie investors in a dilemma state and their investments turning to what they don't expect.

I think the common misconception about crypto is when they thought that cryptocurrency is a get rich quick scheme and anonymous when the truth is it isn't all what it is. We know that cryptocurrency price will increase and decrease depends on the market and it is not anonymous but pseudo-anonymous where the transaction can be tracked or traced but it won't connect to the owner or in other words you can see the transaction but you won't be able to know who it belongs to.

The biggest misconception I see is that people assume cryptocurrencies are... currencies. In actual practice they simply aren't used that way, and there are huge barriers to doing so that haven't been toppled even after 10+ years and billions of dollars of trying.

Cryptos are a great mechanism for speculation/investment and this is a real value for the human race and the billions of dollars that has gone into crypto demonstrates that.

But a replacement for credit cards and physical cash? Cryptos don't do that, and there's no sign they ever will at this point.

Most definitely, and this is a misconception that really need to be correxted

I always like reading financial threads on social media even if it's non crypto and of course, the opinions about bitcoin are different from each other. The top 2 misconception I always remember after reading people opinions are.

#1: Bitcoin/Cryptocurrency is a scam and the money you invested will be gone like a bubble. I guess people say it like this because they have a friend or they themselves had invested into crypto and got scammed or hacked that's why their bitcoin is gone. Basically, it's a result of lacking knowledge about crypto.

#2: You can get rich on crypto overnight. Yes it is possible, we can't deny that, but the risks along side with it is far too much that you can somehow consider it as doing gambling. Newbies might assume that it is easy to get rich on crypto, they just didn't know how much risks people take to get that money they desire.

Based on how I heard people criticizing crypto, they always expect that crypto could make them rich instantly. They believe that by merely investing in crypto, it will bring big changes in your life and totally change your status of living. That's how YouTubers have influenced their way of thinking, that crypto is a get rich quick. While in reality, it's not.

You could have lose a thousand dollars if you invest in crypto without prior knowledge. Same like you could have earned a million if you know how to invest in bitcoin well.

Aside from the misconception made by people seeing cryptocurrency as a get rich quick scheme, they also find crypto as a tool for scammers. For me, this is the worst misconception ever. Cryptocurrency is a digital currency where transparency is very high, so I don't think criminals will prefer to use this than fiat where fraudulence and scams have been seen and practiced.

However, those are just speculations that have no real basis.  When they're not allowed to criticize fiat negatively, they make sure to put all the blame on crypto.

i guess, that's the usual notion towards crypto, a get-rich-quick path but later on, they will find out that it is not.
once they got in, they will see that there's more than meets the eyes and get disappointed because it is not what they expect to see in this market. most are blinded by reality because of some influencers showing they got loads of money out of their crypto investment. they thought they can replicate it quite fast.

and once their expectations are not met, they will spread negative sentiments to the public. as if it is the crypto's fault why they didn't get out with bags of money.

also, one more misconception is that crypto is majorly used by scammers, fraudsters and other illegal actors. this is why it is good that countries like el salvador makes btc as their legal tender because such negative notion is fading away because there are legal entities now that are already in this market. known personalities like elon musk is also i believe a great help to entice new users in this market.

I think people have various misconceptions about cryptocurrency.

> Some consider cryptocurrency as an asset that can make you rich quickly¹.
> There are also those who consider crypto to be a Ponzi scheme².

I think these two opinions are the ones that are most often expressed regarding cryptocurrencies. Because maybe one opinion seems to lead in a positive direction. But actually this is actually a misunderstanding.
And the second opinion is negative, because it calls crypto a Ponzi scheme. But in reality this opinion is also a misunderstanding. Even though there are a handful of crypto founders who intend to cheat, they are still a minority. So if crypto as a whole is called a Ponzi scheme, I think that's a misunderstanding.