The Biggest Misconception About Cryptocurrency

[yndye]

“The biggest misconception about cryptocurrency is that it’s just a passing trend, which is an emotional reaction to the paradigm shift that’s ultimately taking place. Cryptocurrency is here to stay – and as every minute passes, hundreds of thousands of new users are adopting it."

 - Ron Chernesky, CEO of investFeed

I think Ron has hit the point in here. Indeed, people are now starting to realize that Bitcoin or cryptocurrency in general is already here and it has no plan to get dead or go away soon. I am sure that many people are quite apprehensive about Bitcoin and that can be normal because Bitcoin is something still new and it can take for people to adopt and thrive. Cryptocurrency has finally arrived and those in the forefront would reap most of the benefits resulting into the use of Bitcoin and other alts.

Some of the experts before said that cryptocurrency will just disappear in the future because it has no real value, it has no physical form but what they have failed to realize is that people need something new, something that would solve the existing problems like transparency. Having middlemen to process transaction have imposed some problems like funds not going through, incorrect amount etc. Blockchain technology made it possible for us not to depend to them and just directly transact to the company or people who are concern and through this way, we could monitor in real time and transactions are processed efficiently.

[bitcoinjames6]

One thing that really bugs me is when people associate exchanges with bitcoin itself. An example is when Mt. Gox got hacked and people lost their crypto that was being stored on Mt. Gox. This caused those who do not know about the difference between exchanges and private keys to assume that "bitcoin got hacked."

My ongoing line is to say that holding bitcoin in an exchange is like holding money in a bank account, while holding bitcoin on a private key is like taking money out of a bank account and storing it under your bed (or some other safe area, assuming under your bed is safe). Basically - if the bank gets robbed then your personal money is with you under your bed. Much like bitcoin, in that if an exchange is hacked then you have your bitcoin on a private key.

I know this is an incredibly simplified version - banks have insurance, central record keeping, no armed robber could acquire all the money in a bank in one heist, etc. etc. etc. - but it illustrates the point that holding your private keys gives you complete control over your crypto. Therefore, no exchange "is bitcoin".

Haha! Looks like this stuff has been getting on your nerves lately! But I really enjoyed the way you clarified all the concepts and the difference between exchange hack and bitcoins hack(which does not exist).
A very precious piece of information! Also, Simpler is better so your comment is perfect. This will also help many people in securing their crypto currencies.

Thanks naidray! It has been getting on my nerves LOL. I love to elaborate on the above as well and get into some of the math of bitcoin private keys. I have a Ledger Nano S, and telling people that the odds of hacking my private key on my Ledger is about 2000^24 (2000 words that the Ledger has as a pool and 24 words in a precise order for the private key) - reinforces the security of private keys.

[Prodigan786]

The biggest misconception i seen in my friends circle its always linking with ransomeware or some scam even i ma explaining its just the payment process . Then they will have question about who owns or owner of bitcoin if  say its not owned by any one its decentralised and its uses blockchain technology they dont understand . I think there should be proper education about blockchain technology for the bigger growth of crypto currency.

[bryant.coleman]

I have talked to a few of my friends, and the biggest misconception in their mind is about the divisibility of Bitcoin. They have told me that they can't afford to invest 4.5K at once. So I told them that they can purchase 0.01BTC, for $45. But the question they ask me in return is, how can a coin be divided by 100? The name Bitcoin is to be blamed. It is not easy to explain all these.

[helars2008]

Yes i agree...
It is indeed a misconception to think that cryptocurrency will not last forever.
I believe the day will come wherein fiat will totally be meaningless then cryptocurrency will come in to play...
And thats the day we all needed to be prepared for...

[Mpamaegbu]

If "as every minute passes, hundreds of thousands of new users are adopting it" really happen, then bitcoin could overtake fiat in few years later

But, i think some biggest misconception about cryptocurrency are :
1. It's currency for criminal or terrorist.
2. It's scam, ponzi, MLM or MMM.
3. It's not secure and can be hacked.
4. It don't have real value, usage or the price will crash.

I just hope price won't crash too hard once many people invest/use crytptocurrency, otherwise many people will be disappointed and the chance for mass adoption will gone.

I quite agree with your perspective here. However, the per minute induction of thousands of new Bitcoin users as Ron alleged still remains to be proved. I will deliberately leave that out as mere speculation. This nonetheless doesn't take away anything from the popularity of Bitcoin and its dominance of all cryptos in the world now.

Yes, there has been a whole lot of misgivings about Bitcoin and many had in the past referred to it in different derogatory terms. Some have even termed it a scam. But those of us who are here know better.

[hatshepsut93]

For me the biggest misconception is that it's "currency". At current level, there is no way to scale blockchain and preserve decentralization by having enough average users running full nodes. Even if you take some ridiculous block size like 32 MB, it still won't be enough to compete with banks. This is because users have to store all transactions that were made in history, so people are doing the same work as Visa does, but on their home computers, with very limited resources, and not getting any rewards for it.

Maybe technologies like Lightning Network will the "currency" part of cryptocurrencies: https://medium.com/@rusty_lightning/dear-bitcoin-im-sorry-fees-will-rise-b002b1449054

[poplolnman]

Yes i agree...
It is indeed a misconception to think that cryptocurrency will not last forever.
I believe the day will come wherein fiat will totally be meaningless then cryptocurrency will come in to play...
And thats the day we all needed to be prepared for...

it's even promising when you really know and understand the real purpose of bitcoin invented. feel how good and benefical bitcoin it is. more than how useful fiat today , it's form of financial freedom yeah it's decentralized. also when you know deep enough about how the money concept in bitcoin where noone could regulate it and the supply are fixed , think about how the demands grow so fast.

[bluefirecorp]

I have talked to a few of my friends, and the biggest misconception in their mind is about the divisibility of Bitcoin. They have told me that they can't afford to invest 4.5K at once. So I told them that they can purchase 0.01BTC, for $45. But the question they ask me in return is, how can a coin be divided by 100? The name Bitcoin is to be blamed. It is not easy to explain all these.

Sorry but I was not able to fetch the issue quite clearly. However, I think they have problem with bitcoins in decimal so simply tell them this is how things work in the world of technology. You can make smallest transactions as well as the largest ones in this way. It is one of the plus points of BTC. Also, it should not be a matter of over thinking.

[badungs]

hundred of thousands seems high. I'd perhaps say thousands. But he is right. People will not accept it because they dont understand it. What is the alternative though? gold?

yes, you're.
more people understand about bitcoin, more and more people will accept and make transaction. nothing alternative that can be bitcoin's rival.

never blame people about misconception or whatever, more people try something will make it happen

[kissmarx]

While most people now notice cryptocurrencies, most are ignorant and these newbies try to play the game the veterans play without properly observing first. And what can you expect? Of course they lose. They lose lots of money invested because the noobs think they know and handle the stress, they forgot the basic "buy low, sell high" concept in buy and sell. When prices go down a bit, they immediately panic and sell low in rush thinking they saved their money when in fact they lost some because an hour, or a day, or a week later prices went up higher than the previous highs. What I say is that noobs should first observe the game before actually playing the game. They'll most likely to lose if they don't do right at first time attempt. And these noobs drag the whole markets down coupled with extra factors such as those so-called hackers hacking the exchanges lame excuses scambag exchanges say.

Another thing is that most people think cryptocurrencies are scam because simply they are, they were, or their friends were simply stupid, and they were scammed. While it's true most scammers nowadays use bitcoin or cryptocurrency investment scheme just to scam people, most of the noobs, i say again, are stupids. They dive without testing the waters first. That's how and why some people think cryptos are scam.

Another worst is that there are new coins popping out like popcorn, some are ICOs, some are hyper inflation coins. These coins are mostly designed for scamming people. Their plan B when things go wrong, the devs get to exit with lots of cash from people who are stupid enough to participate. But not all ICOs are scam. Heck, some coins/tokens intended to be scam by devs became successful now. And we know there are many of them. Those devs got luckier their coins didn't end up scam after all. And people who invested became happy. And what about those that end up as scams? Devs still get lucky and ran away with stupid people's cash and then the stupid greedy people of course lose their investments to the greedy devs. It's like a monster eaten by another bigger monster.

And it is funny, you know. Crypto life is funny. Most of the time, you'll never know what bit you until the time you realize you did it yourself because you're noob stupid.

[bungutko]

In my observation, cryptocurrency has this misconception to the people investing cryptos most especially for the new ICO's that after the token sale, they are gone for good leaving behind the investors out of nowhere and I believe this is happening since not all ICO's are true. There are scam ICO reaping the investors money and just leave them behind. Had also observed that during the pre-token sale the value from the start seems to be ok but after the token sale, it just drop very low and not able to recover again.

[sakamaku]

The Biggest Misconception About Cryptocurrency :
- "Bitcoin prices only increase"
It depends and is a matter of time. In the short term this is not always true, the opposite, but in the long run, it has been true until now. Bitcoin's price has risen since the first bitcoin was released in 2009, but prices have remained unchanged for a long time. Although Bitcoin prices are likely to become much higher when technology is open, if the problem of scalability and management issues is solved and when network effects are introduced. However, Bitcoin is increasingly competing with Bitcoin Cash or Bitcoin Gold, as well as other anonymous solutions such as Monero, Zcash, or scalable solutions such as Dash and Stellar, or even Ethereum and platforms. Similarly - if and when they manage to solve the scalability question first.
- "Bitcoin and Blockchain technology are in safe hands"
Modern blockchains such as Bitcoin Blockchain are designed in a very expensive way to manipulate transactions. Hacking data on Blockchain is much harder / more expensive than hacking data on a server. Therefore, Blockchain technology can be considered more secure than server-server technology. However, the technology also introduces new types of security risks: intelligent contract security, the reliability of external data sources (oracles), network attacks, fall attacks three hard.

[IndigoRed]

“The biggest misconception about cryptocurrency is that it’s just a passing trend, which is an emotional reaction to the paradigm shift that’s ultimately taking place. Cryptocurrency is here to stay – and as every minute passes, hundreds of thousands of new users are adopting it."

 - Ron Chernesky, CEO of investFeed

I think Ron has hit the point in here. Indeed, people are now starting to realize that Bitcoin or cryptocurrency in general is already here and it has no plan to get dead or go away soon. I am sure that many people are quite apprehensive about Bitcoin and that can be normal because Bitcoin is something still new and it can take for people to adopt and thrive. Cryptocurrency has finally arrived and those in the forefront would reap most of the benefits resulting into the use of Bitcoin and other alts.

Some of the experts before said that cryptocurrency will just disappear in the future because it has no real value, it has no physical form but what they have failed to realize is that people need something new, something that would solve the existing problems like transparency. Having middlemen to process transaction have imposed some problems like funds not going through, incorrect amount etc. Blockchain technology made it possible for us not to depend to them and just directly transact to the company or people who are concern and through this way, we could monitor in real time and transactions are processed efficiently.

I completely agree. How can something that can be of great value (virtual currency and blockhain) just disappear? I thin in time, society will open their minds and eyes to see the true potential of having a virtual currency. I really like what was said about it in a book called Virternity. "VC system is self-fulfilling in the respect that value derives from those who use it. It is thus not based on the traditional benchmarks of creditworthiness and other current mechanisms in place to determine measures of confidence in matters of currency value and its inherent credibility as a reliable exchange medium." True, right?

[jpespa]

Yeah many are adopting it now that's why there are many new coins being created because they are trying to create innovation from the idea of bitcoin. It will never be gone because it's somehow became part of the virtual economic world we have.

[ganjasmokingg]

“The biggest misconception about cryptocurrency is that it’s just a passing trend, which is an emotional reaction to the paradigm shift that’s ultimately taking place. Cryptocurrency is here to stay – and as every minute passes, hundreds of thousands of new users are adopting it."

 - Ron Chernesky, CEO of investFeed

I think Ron has hit the point in here. Indeed, people are now starting to realize that Bitcoin or cryptocurrency in general is already here and it has no plan to get dead or go away soon. I am sure that many people are quite apprehensive about Bitcoin and that can be normal because Bitcoin is something still new and it can take for people to adopt and thrive. Cryptocurrency has finally arrived and those in the forefront would reap most of the benefits resulting into the use of Bitcoin and other alts.

I have the same opinion with Ron. He gave a very accurate statement about the thinking of those who left the Cryptocurrency market. Most people think that the Cryptocurrency market only lasts for a certain amount of time and then collapses. They make big mistakes and that will make them lose the chance to become rich.

[pooya87]

The Biggest Misconception About Cryptocurrency :
- "Bitcoin prices only increase"
It depends and is a matter of time. In the short term this is not always true, the opposite, but in the long run, it has been true until now. Bitcoin's price has risen since the first bitcoin was released in 2009, but prices have remained unchanged for a long time. Although Bitcoin prices are likely to become much higher when technology is open, if the problem of scalability and management issues is solved and when network effects are introduced. However, Bitcoin is increasingly competing with Bitcoin Cash or Bitcoin Gold, as well as other anonymous solutions such as Monero, Zcash, or scalable solutions such as Dash and Stellar, or even Ethereum and platforms. Similarly - if and when they manage to solve the scalability question first.

well price won't increase for eternity but it will increase until we reach mass adoption and that is far away and as the adoption grows bitcoin price will grow with it.
you are getting a couple of things wrong here too.
first the price has never been "unchanged" from 2009 till now. it is constantly changing and most of the times the changes are wild. people call bitcoin a "rollercoaster" for that. it is not just a joke.
then the scaling is not something you snap your fingers and is fixed for good for eternity. it is something you improve upon every step of the way and will continue doing so.
and finally these shitcoins you named are just pump and dump shitcoins, none of them are even scalable. ETH network is currently clogged like a toilet, Monero can't handle large number of transactions and had always had a serious problem, ZCash is not as good as Monero and has the similar scaling issues. Dash is centralized bullshi.

- "Bitcoin and Blockchain technology are in safe hands"
Modern blockchains such as Bitcoin Blockchain are designed in a very expensive way to manipulate transactions. Hacking data on Blockchain is much harder / more expensive than hacking data on a server. Therefore, Blockchain technology can be considered more secure than server-server technology. However, the technology also introduces new types of security risks: intelligent contract security, the reliability of external data sources (oracles), network attacks, fall attacks three hard.

complete nonsense. everything has been open source so far and it is not just in the hands of one person, everyone with the knowledge to read code (basic or advanced) can see the code, check it and improve/fix it. as for the "hack" you are describing that doesn't even make sense.

[avoxosuccesful]

i think i agree with ron,i think bitcoin has its relevance and the crptocurrency has shown it's relevance that has also made me to really say that indeed this two are here to stay and not just a myth will be talking about. take time On the off chance that you know somebody working in managing an account or back you could ask them and they'd know to disclose to you that individuals in those enterprises considered e-installments and also e-money. They declined to trust that such patterns could get on yet now they needed to adjust to individuals requests and utilization of innovation. Regardless of whether the theoretical pattern for digital money "passes" the innovation would at present be there, ready to be used.

[tobreak007]

I am afraid of a dot.com bubble that will fly away the market

[gabmen]

“The biggest misconception about cryptocurrency is that it’s just a passing trend, which is an emotional reaction to the paradigm shift that’s ultimately taking place. Cryptocurrency is here to stay – and as every minute passes, hundreds of thousands of new users are adopting it."

 - Ron Chernesky, CEO of investFeed

I think Ron has hit the point in here. Indeed, people are now starting to realize that Bitcoin or cryptocurrency in general is already here and it has no plan to get dead or go away soon. I am sure that many people are quite apprehensive about Bitcoin and that can be normal because Bitcoin is something still new and it can take for people to adopt and thrive. Cryptocurrency has finally arrived and those in the forefront would reap most of the benefits resulting into the use of Bitcoin and other alts.

I have the same opinion with Ron. He gave a very accurate statement about the thinking of those who left the Cryptocurrency market. Most people think that the Cryptocurrency market only lasts for a certain amount of time and then collapses. They make big mistakes and that will make them lose the chance to become rich.

It's not just about becoming rich. Crypto will be here to stay because it's technology will advance the way we do things. More than the monetary value of each and every coin in this market, the technology it uses will better the way we do things in the future definitely it's way different from those bubble collapses in the past