When cryptocurrencies were first introduced to the world, many people were skeptical about them. However, they started gaining the confidence of many experts over the years. But now that their popularity has reached heights, the public still seems to be apprehensive about them in general. One of the major reasons behind such drawbacks of Bitcoin Affects is that people still believe that cryptocurrencies are scams. Since these are digital tokens, people cannot wrap their heads around the fact that something that has an existence only in the digital world can also be valuable in the real world. However, there are many reasons today that support the fact that cryptocurrencies are not a scam.
Recognition by government
In the recent 5 years, people have seen a phenomenon where all world leaders are discussing the implications of cryptocurrency. Hence, people cannot claim that such currencies have no value. One might have also seen how many governments have already agreed to recognize cryptocurrency as a valid asset class. The country of El Salvador has also recognized bitcoins as the legal tender of money. Now that the cryptos have legal backing from the government, it is very rude to believe that cryptocurrencies are a scam.
Security concerns
One of the major reasons behind people not believing in the potential of cryptocurrencies is the security concerns. Unlike other banking platforms which can easily be left vulnerable to hacking, cryptocurrencies are based on the blockchain network. This network comprises hundreds of thousands of blocks which are added periodically when transactions are made. However, it can be very difficult for hackers to hack into this system and disrupt data. This is mostly because the blocks are all integrated in such a manner that unless an entity has over 50% of the network under it, it cannot make changes to the network. Since all bitcoins are traded in the crypto exchange platforms, it will be very difficult for one entity to have control over 50% of the network.
Cryptocurrency exchange platforms
One area of the cryptocurrency market where many people have fallen prey to scams is cryptocurrency exchange platforms. Many users choose to go for less renowned platforms as they believe that lesser fees shall benefit them in the future. However, such fraud third party applications come with no authentic certifications and experiences in the crypto fields and ultimately, with wrong suggestions and advices, they make the investors lose all their hard-earned money in one go. In such cases, proper verification is a vital step indeed. If you cannot, then it will be a problem for you as you might lose all your money and your cryptocurrencies. Therefore, doing proper research before choosing a cryptocurrency exchange platform is very important. Additionally, you should not forget to ask your peers who are already in the market for references. One such great cryptocurrency exchange platform is bitcoin-equliser.com.
Transparency
Another prominent feature of cryptocurrencies that worries the public is the transparency feature. Everyone knows that cryptocurrency is based on the anonymity of users. Hence, many think that these are just a front for running illegal activities and businesses. However, the same is not true. While it is correct that cryptocurrencies are based on anonymity, they also have a certain element of transparency included. If you have been a part of the crypto market for a long time, then you would know that all transactions done on the blockchain network are recorded in a public ledger. One cannot think of any other form of payment system where you have access to a public ledger to see what and how transactions have been made. The only tiny hiccup here is that the said public ledger does not contain the name of the parties but rather the public keys. However, now that you are seeing government agencies being interested in cryptocurrencies, it will just be a matter of time for them to also find out which public key belongs to whom. Then people can bid goodbye to committing nefarious activities using cryptocurrencies.
Therefore, as you can see these are some of the important reasons that highlight why cryptocurrencies are not a scam. The world is slowly adapting to the usage of cryptocurrencies and so should you. You should move forward with becoming an investor now before the prices of the currency rise to limits when it will no longer be affordable.
