Over the past few years, there’s been a lot of hype and attention surrounding cryptocurrency and bitcoin. While many people are familiar with these terms, there continues to be misconceptions about how they work.
Myth #1: Cryptocurrency is the same thing as bitcoin.
Somewhat…Cryptocurrency is digital currency exchanged online for goods and services. It relies on a technology called blockchain, where many computers in a network manage and record transactions onto a “public ledger.”
An example of a cryptocurrency popular today would be Bitcoin. But it is only one of 2,000 types of cryptocurrency available to trade today. There are many more to choose from, such as Litecoin and Ethereum. What makes cryptocurrency so attractive to many is that it doesn’t require a central bank to regulate how money flows.
Myth #2: Cryptocurrency is illegal.
Depending on where you are in the world, cryptocurrency is legal and can be used. It’s best to check your country’s guidelines about the use of cryptocurrencies.
Myth #3: Cryptocurrency transactions are anonymous.
Depending on the currency being used, these transactions are anonymous in the sense that you aren’t giving up personal information like your name to send or receive currency. With cryptocurrencies like Bitcoin, where you can generate a unique address (usually a string of numbers and letters) to receive bitcoin at, it’s possible to track transactions if the receiver doesn’t generate new address each time a transaction is supposed to happen.
The value of many cryptocurrencies today fluctuates so much, so unless it becomes stable, it won’t be taken seriously as a currency. Until then, move your money and #BankBlack with OneUnited Bank.