Home Finance What Most People Get Wrong About Virtual Currencies & E-money – 2021 Guide

What Most People Get Wrong About Virtual Currencies & E-money – 2021 Guide

by Biljana Denic

It is not easy to enter into a new age. All novelties had difficulties in establishing themselves, going against prejudices and already established order. Today we’re going to talk about cryptocurrencies and e-money, which are trying to change the financial market as we know it. But, as everything new, there are many doubters around still judging before getting to know the facts. We are here to try and make things right.

In this article, we are going to talk about what most people get wrong about virtual currencies & e-money. As you’ll see, there are many things that are still unclear to most people out there, and the struggle to make them learn actual lessons continues.

1. It Only Works on Web

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It’s unbelievable how many people got this wrong. It is a common belief that e-money and cryptocurrencies can only be used on the internet. While some time ago this was indeed a fact, but those times are far behind us. Today we can use both e-money and cryptocurrencies for purchase all over the place. Yes, there are places where you won’t be able to use them as a method of payment, but with each passing day, we have more establishments prepared to accept these means of payment. People on the internet have been using these means of payment for years now, but in recent times it is getting more and more popular and not only with people involved in this sphere of finances.

2. The Banks Are Safer

In most countries, a homeland currency has its value stored in gold in the federal reserves of that country. It’s what gives it its value. This way of doing things is present since centuries ago, and people accept it and give their currency faith due to it. The fact that most digital ones and e-money don’t have this type of backing makes people feel uneasy and creates a tendency of believing more in established institutions. For most onlookers, it would seem that cryptocurrencies came out of nowhere and that they’ll disperse the same way.

In fact, it’s not easy to create a Bitcoin, for example. Miners have to work hard and employ heavy-duty computers to get any results. BTC is going to be around, and miners will be breaking apart blockchains of information in years to come until the total amount doesn’t reach 21 million of Bitcoin. There’s nothing unsafe regarding cryptocurrencies, mines their volatility, but it can be countered if you follow the market. On the other hand, e-money can be exchanged for real money at all times, and there’s no reason to feel unsafe about it. The same is with BTC, which can be traded into the fiat currency of your choice at almost all exchanges.

3. It’s All a Scam

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Well, it’s not something that’s easy to argue, considering how many people honestly believe this. But, we must as it’s not true. Of course, you can get scammed when it comes to crypto and e-money. But you can get scammed on the street for your money, or even in a bank and a grocery store. It’s not as if you’re safe from scams outside of virtual currencies. But, to be honest, there were and currently, are many scams going around regarding cryptocurrencies. Many digital currencies were established only to scam people, but that doesn’t make it a rule that all of them are a scam.

But, in fact, cryptocurrencies should be regarded the same way you would any other currency. The world of finances isn’t a safe one; you can lose everything in a moment, even on the stock market. Cryptocurrencies are not different, and they’re not more dangerous than traditional investments. What you need to do is to educate yourself on cryptocurrencies. Once you do this, you’ll see that scams are few and far between and that with the right knowledge, you can take advantage of this newly founded market.

4. Digital Currencies Are Bad for the Environment

It is vital to preserving our planet, but are digital currencies the real enemy? Many people are voicing their opinions on the effect of crypto on the environment. When the virtual currency trend went swinging, many people joined the race and started mining. To be useful in mining, you need a strong computer or a dozen of them. The entire process requires a lot of electric power. But, it is still cost-effective, as no matter how much electric power you spend, it will always give you great returns. The mining operation isn’t easy to find, but it’s worth both your time and money, not to mention effort. In the long run, it won’t affect our environment in any particular way. The most mined crypto is BTC, which has a total amount set at 21 million. When people reach this number, the amount of mining will be instantly reduced. What this means for our surroundings is that the amount of electric power spent is also going down.

5. There’s Little Value to be Found

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It’s not easy to invest in cryptocurrencies and have an immediate return. As we already said, yes, they’re volatile, so you need to know what you are doing. But, this doesn’t mean there’s no value to be found. What it means is that there are going to be earned if you know how to make the right moves. Of course, there are risks, just as with any other investments. Another factor that scares people off believing they won’t earn by investing in crypto is taxes. You can’t avoid taxes, but you can learn how your country rates crypto-trading and how much of your digital earnings is taxable. But regardless of taxes and other expenses you might have, cryptocurrencies have proven themselves as valuable assets. Many people became millionaires from trading BTC and other virtual currencies. You can become one of them by joining the-bitcoinrevolution.com. To break down all of your prejudices about e-money and cryptocurrencies, you need to get involved with them asap.

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