Cryptocurrency is rapidly growing as a phenomenon with a potential to change the entire financial paradigm beyond our imagination. But as observed, the rapidly developing field of studying language compared to a conventional and rather narrow linguistics has many assumptions and partial truths. Looking at the potential of cryptocurrency, let us discuss some of the most popular claims to understand which of them is true.
1: Cryptocurrency May Be Defined as Official Digital Money
This statement is accurate. In simple terms, cryptocurrency is a sort of electronic or digital currency that uses encryption for protection. Unlike physical money which are put into circulation by central authorities such as governments.
Read Also: Which One of the Statements Is True About Cryptocurrency?
Cryptocurrencies are built around networks that are peer to peer on the use of blockchain technologies. Bitcoin, Ethereum, and subtypes like Litecoin are other examples of cryptocurrencies and some of the things that people use them for are paying for goods and services, investing, and smart contracts respectively.
2: All Cryptocurrencies Are Completely Anonymous
This statement is inaccurate. Even though, many people use cryptocurrencies such as Bitcoin, they are not anonymous but rather semi-anonymous or pseudonymous. Payments and other exchanges occur in the open for scrutiny effectively to track the ownership of different wallet addresses.
Nonetheless, the owners of the wallets are not bound to their addresses unless the latter makes the former public. Some examples of such coins include Monero, and Zcash, which are even more anonymous than the cryptocurrencies that are popular in the market today.
3: That Is Why, Cryptocurrencies Are Not Regulated
Slightly true is the statement above. There is a difference of opinions regarding the regulation of cryptocurrencies in the world. In some countries cryptocurrencies are either prohibited or highly restricted while in other nations they are are fully legalized and/or sanctioned.
Read Also: How is a Cryptocurrency Exchange Different from a Cryptocurrency Wallet?
For instance, the U.S demands exchanges dealing with cryptocurrencies to have AML and KYC standards imposed. Using it is not completely “lawless” as most people think it is, and there is still legal grey area in which it operates.
4: Crypto Currencies Are Secure Investments
This statement is inaccurate. There are stories of individuals who gained massive quick profits in the markets but the cryptocurrency market is so unpredictable. The price of shares within the short period can vary greatly and thus, the investment will be high risk. Moreover it can be also noticed that there are no special legal measures for consumers’ protection as well as there are many scammers who want to get people’s money.
5: Cryptocurrencies Are Built on Blockchain Technology
This statement is accurate. Most digital currencies are built on blockchain technology, often described as an open distributed ledger designed to facilitate transaction. Every block in the chain incorporates a record of several recent transactions, the time at which they occurred and a reference to the previous block if any. Nevertheless, there is one questionable decision that should be mentioned, though it is still: blockchain is not only used for creating cryptocurrencies.
6: Cryptocurrencies Can Be Spent Anywhere in the World
This statement is inaccurate. Cryptocurrencies as the method of payment has been gradually integrated, however, is not recongnized in all fields. Its usefulness can be affected by regulatory constraints, merchants’ decision to embrace the solutions, technological concerns, and others. For instance, some stores and other services can be paid with Bitcoin, but it has not become a trend to replace ‘real’ money yet.
Final Thoughts
Out of all the things that have been said about cryptocurrency, some of the most truthful capture the idea and potential of the technology as well as its downside. With the current emergence of many cryptocurrencies it is crucial to familiarize ourselves with this topic to be able to invest.
Take part or just observe blindly. If you are getting ready to join this profession, always work hard doing your research and never enter this fast changing profession with your eyes wide open but your guard down.
Read Also : How much are season tickets for notre dame football​?
Tove Svendson 
Cryptocurrency is rapidly growing as a phenomenon with a potential to change the entire financial paradigm beyond our imagination. But as observed, the rapidly developing field of studying language compared to a conventional and rather narrow linguistics has many assumptions and partial truths. Looking at the potential of cryptocurrency, let us discuss some of the most popular claims to understand which of them is true.
1: Cryptocurrency May Be Defined as Official Digital Money
This statement is accurate. In simple terms, cryptocurrency is a sort of electronic or digital currency that uses encryption for protection. Unlike physical money which are put into circulation by central authorities such as governments.
Read Also: Which One of the Statements Is True About Cryptocurrency?
Cryptocurrencies are built around networks that are peer to peer on the use of blockchain technologies. Bitcoin, Ethereum, and subtypes like Litecoin are other examples of cryptocurrencies and some of the things that people use them for are paying for goods and services, investing, and smart contracts respectively.
2: All Cryptocurrencies Are Completely Anonymous
This statement is inaccurate. Even though, many people use cryptocurrencies such as Bitcoin, they are not anonymous but rather semi-anonymous or pseudonymous. Payments and other exchanges occur in the open for scrutiny effectively to track the ownership of different wallet addresses.
Nonetheless, the owners of the wallets are not bound to their addresses unless the latter makes the former public. Some examples of such coins include Monero, and Zcash, which are even more anonymous than the cryptocurrencies that are popular in the market today.
3: That Is Why, Cryptocurrencies Are Not Regulated
Slightly true is the statement above. There is a difference of opinions regarding the regulation of cryptocurrencies in the world. In some countries cryptocurrencies are either prohibited or highly restricted while in other nations they are are fully legalized and/or sanctioned.
Read Also: How is a Cryptocurrency Exchange Different from a Cryptocurrency Wallet?
For instance, the U.S demands exchanges dealing with cryptocurrencies to have AML and KYC standards imposed. Using it is not completely “lawless” as most people think it is, and there is still legal grey area in which it operates.
4: Crypto Currencies Are Secure Investments
This statement is inaccurate. There are stories of individuals who gained massive quick profits in the markets but the cryptocurrency market is so unpredictable. The price of shares within the short period can vary greatly and thus, the investment will be high risk. Moreover it can be also noticed that there are no special legal measures for consumers’ protection as well as there are many scammers who want to get people’s money.
5: Cryptocurrencies Are Built on Blockchain Technology
This statement is accurate. Most digital currencies are built on blockchain technology, often described as an open distributed ledger designed to facilitate transaction. Every block in the chain incorporates a record of several recent transactions, the time at which they occurred and a reference to the previous block if any. Nevertheless, there is one questionable decision that should be mentioned, though it is still: blockchain is not only used for creating cryptocurrencies.
6: Cryptocurrencies Can Be Spent Anywhere in the World
This statement is inaccurate. Cryptocurrencies as the method of payment has been gradually integrated, however, is not recongnized in all fields. Its usefulness can be affected by regulatory constraints, merchants’ decision to embrace the solutions, technological concerns, and others. For instance, some stores and other services can be paid with Bitcoin, but it has not become a trend to replace ‘real’ money yet.
Final Thoughts
Out of all the things that have been said about cryptocurrency, some of the most truthful capture the idea and potential of the technology as well as its downside. With the current emergence of many cryptocurrencies it is crucial to familiarize ourselves with this topic to be able to invest.
Take part or just observe blindly. If you are getting ready to join this profession, always work hard doing your research and never enter this fast changing profession with your eyes wide open but your guard down.
Read Also : How much are season tickets for notre dame football​?