Five myths about cryptocurrencies in Russia: debunking each

CONTENT

Cryptocurrencies are not a pyramid scheme, but a new type of means of payment
Digital currencies, like fiat money, are not backed by anything
You can get knowledge about cryptocurrencies online

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The attitude towards cryptocurrencies in Russia is rather ambiguous. In the country, the crypto community makes up a significant share of the market, and it is quite active. What can not be said about government agencies – until the last moment, the government treated cryptocurrencies with some skepticism. The issue of digital assets was considered from different angles and with diametrically different approaches

On January 1, 2021, the law “On digital assets” came into force, regulating cryptocurrencies: ownership, turnover and trading. Despite criticism from the crypto community, it was this document that laid the foundation for the regulation of crypto assets in Russia. This industry is already overgrown with myths and rumors. In this article we will try to dispel the most popular

Cryptocurrencies are the new MMM

Russia was badly burned by the financial pyramids that poured into the market in the early 90s. Some of them have migrated to our days under other names. Because of this traumatic experience, a myth has taken root in the public mind that everything is new, including cryptocurrencies, is a scam that should be avoided..

Unlike fraudulent schemes, cryptocurrency is a digital asset based on blockchain technology, which is actively used in many areas of life, from the voting procedure to implementation in production..

A number of cryptocurrencies have already proven their worth in the long term. For example, Bitcoin has been repeatedly recognized as the best investment asset, which has risen in price 83 times in seven years..

Long-term Bitcoin chart. Source: CoinGeko

Yes, cryptocurrencies are quite volatile, however, the same happens with fiat money – they can rise in price or, conversely, fall. But hardly anyone will argue that, for example, the dollar is a scam. In addition, there is a growing interest in cryptocurrencies on the part of institutions, as well as the desire of a number of countries to create a national cryptocurrency.

Cryptocurrencies are not backed by anything

Some cryptocurrencies are really not backed by anything. Moreover, the vast majority of the most expensive cryptocurrencies at the moment are not backed by anything. The only exception is stablecoins, which are equivalent to fiat money..

It might come as a shock, but the massive bulk of Fiat is also unsupported. After the abolition of the gold standard in 1971, countries stopped maintaining sufficient gold reserves to support their currencies. Fiat issuance has been based on a social contract for decades.

Over time, the social contract has been transformed and society itself now dictates the conditions on which it is ready to purchase this or that product, service or currency. It’s the same with cryptocurrencies. Bitcoin costs exactly as much as people are willing to pay for it.

Cryptocurrencies are used only by dishonest officials, drug dealers and other marginalized

When the cryptocurrency market was just beginning to take shape, a whole segment appeared on the darknet offering illegal transactions using cryptocurrency. But cryptocurrency is just a tool, and you can use it for both evil and good..

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Five myths about cryptocurrencies in Russia: debunking each

In addition, the legislation of many countries already clearly and transparently regulates the use, trading and storage of cryptocurrency, and cryptocurrency platforms make trading safe and transparent for their users. Well-known and respectable people trust cryptocurrency. Among them are Elon Musk, Mark Cuban, Jeff Bezos, Jack Dorsey, Mark Zuckerberg – the list goes on and on..

Cryptocurrencies are too volatile, they cannot bring profit in the short term

This is also a myth. Interestingly, even among the adherents of cryptocurrencies, there is a separate layer of people, “only hobbyists” who consider crypto trading to be an extremely high-risk enterprise. Exchange users have long lost faith in this myth, and short-term profits speak for themselves. For example, with the help of referral programs, traders can make a profit without much effort and without even delving into stock quotes. Also, some cryptocurrency exchanges such as StormGain, KickEX, Gemini, Kraken, Poloniex offer exchange bots that are suitable for both a beginner and an experienced trader..

Academic knowledge is required to trade cryptocurrency

Another myth. There is an opinion among “only hobbyists” that trading in cryptocurrency is the same as trading in fiat in the 80s of the last century on the New York Stock Exchange. They believe that this requires special university knowledge that cannot be obtained in a relatively short time..

Many cryptocurrency exchanges have created their own educational platforms, where the most complete and up-to-date materials on cryptocurrency quotes, market trends and the latest know-how in the field of trading are collected.

All information is presented in an understandable and easy form, so it is not difficult to improve your level of knowledge in the field of cryptocurrency trading. BeInCrypto also has its own knowledge base. Therefore, today anyone can get basic knowledge of cryptocurrency..

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As you can see, there are still strong myths about cryptocurrency in society, which it is high time to forget. The digital currency is rapidly developing and becoming popular all over the world, and the digitalization of the economy is gaining momentum. Therefore, it is worth studying cryptocurrencies and getting used to them today..

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