{"id":522,"date":"2021-03-29T12:35:12","date_gmt":"2021-03-29T12:35:12","guid":{"rendered":"https:\/\/www.litebringer.com\/blog\/?p=522"},"modified":"2021-04-19T12:29:11","modified_gmt":"2021-04-19T12:29:11","slug":"the-5-most-discussed-myths-regarding-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/www.litebringer.com\/blog\/blockchain\/the-5-most-discussed-myths-regarding-cryptocurrencies","title":{"rendered":"The 5 most discussed myths regarding cryptocurrencies"},"content":{"rendered":"\n
Whenever the value of a cryptocurrency increases dramatically, the discussions of whether or not cryptos are valid start all over. Let’s see which arguments are valid and which are not.<\/p>\n\n\n\n\n\n\n\n
In the first few years after the creation of Bitcoin, there were not really any myths regarding cryptocurrencies. If there was any speculation and uncertainty it was mainly about the identity of Satoshi Nakamoto, the anonymous founder of Bitcoin. <\/p>\n\n\n\n
Since the hype in 2017, the number of rumours and myths has grown considerably. Most of these new investors as well as the general public were only interested in its potential for financial speculation and not in the technical aspects of blockchain technology. This created the perfect platform for rumours. <\/p>\n\n\n\n
Nevertheless, not all of the heavily discussed topics have been created out of thin air. In this article, we will introduce the 5 most famous myths and discuss how valid they are \u2013 or whether they can be busted completely.<\/p>\n\n\n\n
This is not true.<\/p>\n\n\n\n
The harshest critics declared cryptocurrencies as a scam in which only early adopters can benefit. They even call it a pyramid scheme. A pyramid scheme is a fraudulent business model which promises astronomic profits to attract as many new members as possible. <\/p>\n\n\n\n
In reality, a pyramid scheme is a zero-sum game. Early adopters profit from the expenses of late adopters. Late adopters can only win if even more individuals decide to join. The problem is, such a scheme cannot go on forever. Over time, fewer and fewer people want to invest and the system will collapse.<\/p>\n\n\n\n
Cryptocurrencies work differently. They can have a win-win outcome, even when early adopters benefit massively. For instance, in 2010 a Bitcoin was not really worth anything. For example, a British man decided to buy 2 large pizzas<\/a> for a man in Florida and got 10,000 Bitcoins in return. Today, these coins are worth over 81 million Euros. At the time the chances were high that Bitcoin would simply have vanished, leaving the British man with 10,000 worthless coins. In that case, he would have lost his whole investment.<\/p>\n\n\n\n The same is true for early investors in more conservative businesses. Someone who would have invested 900 Euros in the initial public offering of Microsoft back in 1986 would now have 1.5 million Euros. Remembering that at the time Microsoft had already released MS-DOS and Microsoft Windows and was the dominant player in the software market. Compared to Bitcoin, this is a much smaller profit but the risk would also have been much smaller. The initial public offering for Bitcoin created three billionaires and an estimated 12,000 millionaires.<\/p>\n\n\n\n In both cases late adopters do not depend on the future development of the organization to get something of value for their investment, unlike in pyramid schemes. They get a share of the company or coins in return which enables them to get a fair percentage of the profit over time. <\/p>\n\n\n\n True and not true.<\/p>\n\n\n\n This statement can neither be verified nor completely denied. It can only be discussed on the basis of different phases of their use.<\/p>\n\n\n\nCryptocurrencies are a \u2018bubble\u2019 waiting to burst<\/h2>\n\n\n\n