Lately, there has been a lot of news about cryptocurrency, and it has distracted many because many have failed to know the reality about the cryptocurrency. There are various myths that you should know while using cryptocurrency; hence we have gathered them all here.
Myths You Should Know About Cryptocurrency
Everything about cryptocurrency seems to be a myth unless you know the truth about it. But there are some myths that are ignored relentlessly. Here we will discuss those over those myths and tell you the truth about them. If you are thinking of starting to trade in bitcoins, then you must be knowing the truth about them. You can visit bdcmagazine.com for more information
1. Cryptocurrency is Not Taxed
We are very well aware that the cryptocurrency is decentralized and there is no central authority that will look after your cryptocurrency property. But this clearly does not mean that cryptocurrency will easily escape being taxed. As you know, the USA government does not want to look into the amount of the cryptocurrency asset every individual has, and they have entrusted the owners with calculating their own tax and paying it to the government. Likewise, in India, if you trade cryptocurrency and make a profit of 10 lacs rupees then you have to pay almost 30% of the profit that has been made All governments may not be this lenient, but some surely will be, and it also means that now most of the countries are going to tax cryptocurrency as soon as possible.
2. Cryptocurrency is Not Real Money
This is probably one of the strongest myth allegations put on cryptocurrency. There is some material asset to back the cryptocurrency; hence most of us think that cryptocurrency value is not similar to any value of the real traditional money. However, people who have been trading cryptocurrencies for a much longer time know that the value of cryptocurrency is inherent, and it is actually precious. Of course, the value of cryptocurrency can never be equalized to traditional value, but it has some amount of value, which is really precious.
3. Cryptocurrencies are Illegal
It is the belief of the people that cryptocurrency or, for that matter, any of the digital assets is illegal, and likewise, many of the countries have rejected the idea of legalizing cryptocurrency. But on the other hand, as you know, the USA has already legalized the use of cryptocurrency.
The Finance Ministry had already declared in the previous year that they are going to explore blockchain technology and all the possible prospects of cryptocurrency. Hence in 2020, they nullified the ban on cryptocurrency use in India. At the same time, many other countries are still not willing to make cryptocurrency legal.
4. Cryptocurrencies are Used for Criminal Purposes
The Silk Road Raid of 2013, brought forward the instances where cryptocurrency is used mostly for drug and human trafficking. This made it clear that cryptocurrency required a lot of regulation so that it is no longer used for sinful purposes. There are still some more criminal cases in India that have shown the use of the cryptocurrencies, which is why India has made KYC mandatory. Only if one has done the KYC, then he would be allowed to trade cryptocurrencies in India.
5. Cryptocurrency is Not Used for Payment Purposes
When cryptocurrencies had arrived in 2009, barely a few people were aware of it, and they did not know how it would be beneficial to them. Earlier people used to use cryptocurrency for just investment purposes, but now it can be easily used for day to day purposes. But the people who have been investing in the cryptocurrency have now realized that the potential of the digital currency is much more than we actually realize. Many of the big companies in the world have accepted cryptocurrency payment. This has helped them to do exceedingly well with their business.
Conclusion
I hope this article has helped you a little to make yourself educated enough to understand the value of the cryptocurrencies. There are various types of cryptocurrencies, and you can spend any one of them as and when you want.
