Debunking Myths Around Trading Cryptocurrency
Cryptocurrency has become steadily popular since its introduction in 2009. From mining directly, retail traders can now invest in them through platforms like Metatrader 4 Australia, which has provided accessible and convenient access to trading. However, digital trading currencies can be slightly complex, unlike stocks and shares, due to their obscure nature. It results in confusion, rumours and myths around cryptocurrencies and their trade. From scrutinizing their intrinsic value and the ecological impact and potential assistance to illegal activity, here are the most common crypto myths debunked.
It Is Just a Trend and Wouldn’t Last.
There was a time when computers, the internet and online communication like email were considered attractive only by a niche group of tech enthusiasts. However, it has now merged with modern personal and works life. Similarly, cryptocurrencies have gained popularity outside the tech-savvy community. Today, over 0.9 million Australians have at least one form of cryptocurrency in their name—millions of others trade parts of crypto on platforms like Metatrader 4 Australia. The products, technology and revenue it has generated have caught the interest of financial institutions and traders. The Australian government is finding ways to implement more stable ways to trade them legally. Tech giants are finding ways to merge the digital and real-world of crypto using blockchain technology to grow their values.
It Is a Scam
In some instances, people have scammed and tricked others out of their cryptocurrency or money through coin offerings. Or through unregulated fundraisers for crypto ventures. However, cryptocurrency by itself is not a scam. Governments, financial institutions, and trusted platforms like MetaTrader 4 Australia find ways to regulate and authenticate transactions. It is becoming more accepted by merchants and retailers for exchange and personal transactions. Find more information about cryptocurrency and its authenticity on the Reserve Bank of Australia and Moneysmart websites.
Mining It is Bad for the Environment
There is a rationale behind people being concerned about the impact of cryptocurrencies on the environment. Some cryptocurrencies adopt a consensus mechanism involving large amounts of energy and computational power to validate and verify digital currency transactions. Some large mining corporations take up large mining operations that consume energy. However, the impact on the environment significantly depends on the source of energy that these mining corporations use for the power grid. If these operations adopt sustainable energy methods, then the environmental impact would be significantly lower, and the currency value would remain intact in the years to come.
Digital Currencies Are not Secure.
Blockchain is the primary technology behind cryptocurrency trade. The distribution database has encrypted security with complex technology that is difficult to break and records the previous transactions in a new box and encrypts them as one enters the blocks. The chain builds on each previous block, and a group of verifiers must agree to validate the transaction information that they have recorded. The linked blocks, consensus mechanisms and encryption make it impossible for hackers to steal digital currency. The weakness could be how one accesses and trades cryptocurrencies through wallets and platforms. Therefore, one must use trusted and secure platforms like Metatrader 4 in Australia to ensure a hackproof system.
Cryptocurrency is Used For Illicit Activities
It is one of the oldest myths about digital currencies. Due to its lack of regulation and global access, people assume illegal operations take over the transaction. While there are instances where some criminal organizations have used digital currencies for their nefarious goals, new companies are emerging, like Chainalysis, that assist with investigations related to crypto transaction crimes to bring down scams and illicit activities to 0.34% today.
