Top 5 Crypto Myths You Should Forget Today

Since Bitcoin made its way into people’s consciousness, the concept of digital currency has caught the imagination of financial market players and tech enthusiasts alike. In 2019, Bitcoin completes a decade of existence. In these ten years, we have seen the transition of cryptocurrencies, from being an exotic asset class to something that holds great importance for the future. Companies have adopted it as a mode of payment and so have governments. Start-ups worldwide are devising credible solutions around blockchain technology, which is touted to disrupt existing frameworks.

So, as we enter into the 10th year of the crypto-craze, it’s time to do away with some popular misconceptions around blockchain and cryptocurrencies. As only with knowledge can mass adoption of digital currencies take hold.

Myth #1: Bitcoin is Blockchain Technology and Vice Versa

Yes, the technology did debut with Bitcoin, but it is not exclusively limited to the currency. The blockchain is a distributed ledger that enables peer-to-peer consensus on the recording of transactions. It is open-source, public and anonymous. It is the underlying technology that maintains the Bitcoin transaction ledger too.

Still, Bitcoin is one of the many applications of blockchain technology. When someone uses the cryptocurrency, miners solve very perplexing algorithms to verify the legitimacy of the transaction, in turn getting rewarded with Bitcoins. The blockchain built for Bitcoin was exclusive; but, with time, this technology has been adapted to other areas. This brings us to the second myth.

Myth #2: Blockchain’s Role is Limited to Cryptocurrencies

Both technologies work in fabulous ways together, but they work brilliantly on their own too. With the advent of the Ethereum blockchain, smart contracts came onto the scene. Blockchain could now be used as a token-free shared ledger, which benefitted many industrial applications. Be it real-estate, supply-chain, identity management, banking or even food procurement; blockchain has applications in multiple sectors.

Myth #3: Cryptocurrency Markets are Non-Regulated

While this may have been the case five years ago, circumstances are different now. Major countries have taken steps to regulate this asset class. Even banning crypto trading, as China has, is a regulatory decision. The US SEC investigative report of 2017 clearly outlines that the offer and sale of digital assets by companies are subject to Federal Securities laws. Even the IRS views them as properties, on which capital gains taxes are applicable.

Myth#4: Cryptocurrency and Blockchain Uphold User Anonymity

Yes, but only to a certain extent. If Bitcoin users appear under pseudonyms, their identities are still revealed during purchases. Many government bodies have formed relationships with credible exchanges to trace the owners of wallets. But, there are coins, like Monero, which use extra features like ring signatures and address derivation to protect identities.

Myth #5: Tokens and Coins Have Same Uses

Coins like Bitcoin acts as simple storage of value. Tokens have complex functionalities. Utility tokens, which are put up in ICOs, serve purposes like providing access rights to a network, or a way to claim dividends from a company in the future. Tokens can also capture commodities or loyalty points.

Another point is, not all coins are put up for crypto trading. The ADA coin is the native currency of the EmurgoHK, a global leader in blockchain technology, also the venture builder of the Cardano blockchain project. Together with IronFX, the global multi-asset broker, they have developed IronX, a world-class crypto exchange. This exchange will offer 24/7 support in over 30 languages.

The primary currency of the future exchange is the IRX token. IRX is an ERC-20 utility token backing the usage of the exchange. IRX Smart Contracts are security audited by the leaders in blockchain security Hosho and Hacken. The public sale of the token started on November 1, 2018, and will be available for a limited time.

The IronX Exchange is regulated by the Estonian Financial Intelligence Unit and will provide a full range of traditional fiat and crypto wallet funding options. The exchange is currently working on achieving both Gibraltar and Malta licenses as well.