The compelling world of cryptocurrencies is full of potential, freedom and unfortunately myths. So, to help any newcomers navigate the field of which crypto myths are based on truth and which have been exaggerated, we welcome you to our “Crypto Myths” series.
“The founder of Bitcoin remains a mystery”
When bitcoin was launched in 2008, the only indication of who the founder was, came in the form of an alias, Satoshi Nakamoto. It is unclear if the “Father of Cryptocurrencies” is an individual or even a group of people. What is known however is that in 2010 all communication with Satoshi Nakamoto ceased and no one has heard from them since.
Rumors say that Satoshi Nakamoto’s bitcoin address shows he is in possession of around 1 million bitcoins, currently valued at over 7 billion.
To this day, no one knows who this visionary is.
“You can’t spend cryptocurrency anywhere!”
Cryptocurrency payments are now accepted by some of the world’s largest fortune 500 companies. With companies such as Microsoft, AT&T and even Subway all accepting crypto payments. The current crypto landscape is consistently changing and growing with more merchants accepting crypto every day, a list of which can be found here.
“Bitcoin is the only cryptocurrency available”
Bitcoin will always be the first kid on the block when it comes to crypto, however, this founding currency has led to the birth of over 2,200 cryptocurrencies worldwide. Ethereum, Litecoin & Ripple are all established currencies with over a billion dollars in market-cap each. Whilst it might no longer be the only kid on the block, Bitcoin is still king with over 55% in total market capitalization.
Social media giants Facebook, are reported to be launching their own cryptocurrency called ‘Global Coin’ by early 2020, with testing to begin later this year.
“Cryptocurrencies are for financial experts only”
The myth that Crypto is for financial experts only, was most likely started by someone who has never bought cryptocurrency themselves. Crypto has never been easier to use since its mainstream run, from using exchanges such as Upbit or Bitstamp, users can set up a free account and start trading almost instantly. The ease of use that now comes with these exchange apps makes it accessible to people from all walks of life.
“Cryptocurrency transactions are anonymous”
This is where the answer is a combination of both true and false. Cryptocurrencies such as Bitcoin are pseudonymous, not anonymous. As the blockchain technology that runs Bitcoin is based upon a public ledger with all transaction history available, the transactions can in certain circumstances be traced back to their sender. If that sender is using an exchange, then the identity can be found out.
The crypto world is a new and dynamic environment with a lot of complex questions surrounding it. This ‘crypto myths’ series will be our opportunity to take the complexity out of the equation and help clear the air on any crypto questions you might have.