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Debunking the biggest cryptocurrency myths in South Africa

by Staff Writer
17 Jun 2021 at 10:00hrs | Views
To any potential South African investor entering the market to turn a profit, cryptocurrencies as well as the blockchain could seem perplexing at first. This is why we aim to debunk certain myths associated with cryptocurrencies such as Bitcoin in order to put an end to all controversy surrounding the ever growing new era of investment.

Cryptocurrencies Are Not Backed By Anything

While this may seem like a myth, it is in fact true. All cryptocurrencies, including that of Bitcoin, are not backed by any banking, financial or government institution. In essence, cryptocurrency was designed as a P2P electronic cash system, without the need of third-party involvement during transactions. This is the area where cryptocurrency out-shines its fiat currency counterpart. Further to this, cryptocurrency cannot be duplicated in any way or be printed as endless money, the way central banks have been doing throughout the years.

Instead, cryptocurrencies are backed by an equally trusted source, except in a completely different sense. Being 100%decentralised, means that cryptocurrencies' most trusted sources are mathematical code with billions being poured annually into the mining thereof.

Cryptocurrency Transactions Are Not Safe and Secure

This is false. The blockchain is the safest and secure way of moving money around in a virtual sense of course. In fact, it is impossible to hack any form of cryptocurrency because of its anonymity and blockchain activity. Because it forms part of a chain, making changes to one block involves making changes to its surrounding blocks. This would be evidently tracked by the network with every transaction made, making it harder to corrupt.

The areas that are prone to violation, however, are the exchanges, wallets and intermediaries providing services to crypto users. The weakest point in the cryptocurrency monetary system lies in the intermediaries. This can be easily overcome when opting to store your crypto coins in your personal offline server or mining rig, making it well-trusted by users.

Crypto Coins Cannot Be Used Anywhere

This is false. Crypto coins such as Bitcoin, can basically be used anywhere these days. There are now literally dozens of firms such as the best online crypto casinos that allow for crypto deposits and withdrawals and day-to-day transactions.

Apart from this, there are several other merchants available in South Africa where you could directly pay for goods and services using your crypto coins. These include, Checkout retail supermarket, Expedia Travel, The Daily Coffee Cafe in Melkbosstrandin the Western Cape and many more.

It'sa Sure-Fire Way of Making Money

This is false. Yes, there have been recorded incidences where cryptocurrency investors have seen huge gains in profit; however, they have also bared considerable losses due to the volatility in the price. With little apparent catalyst, cryptocurrency prices can increase and decrease instantly at alarming rates. While investing in cryptocurrency may not guarantee a sound investment, there are patterns and algorithms that can help with forming the base for a trading strategy. These are not for the novice, and are best left to those well-versed in the mining of cryptocurrency.   

Source - Byo24News