5 misconceptions about the blockchain and cryptocurrencies

November 13, 2022 0

Misconception 1. Blockchain is a pyramid. Unless you bought PonziCoin, a token with a talking name. Also I do not advise to invest in Bitconnect and similar projects.

Misconception 2. Only fraudsters use cryptocurrencies.

Fraud and hacks in the cryptosphere are present and very common, and this causes serious concern. Anonymity, which gives the blockchain, allows for the appearance of fraudsters and hackers. But this is only a side effect of technology, and not its essence. For example, terrorist groups use social media to attract new recruits, but this does not mean that we all need to stop using Facebook or Twitter.

5 misconceptions about the blockchain and cryptocurrencies

Misconception 3. Blockchain is a universal way to attract funding.

The fact that a certain company attracted millions during the ICO does not mean that you should take an example from it. The goal of ICO is to issue tokens for potential users, which encourages them to use the company’s blockchain. The tokens should eventually work somehow. If your startup has nothing to do with the blockchain, then you do not need to release tokens. You should not even think about using them to raise funds.

Misconception 4. Blockchain revolutionizes your business.

If your business does not require the use of all the benefits that the blockchain gives, it will not help you.

Misconception 5. Blockchain shake up all branches

You’ve probably heard the expression “It’s like Uber (for industry X)”. Now companies are trying to create something with the help of the blockchain, which in terms of impact will be similar to the emergence of Uber. Moreover, there is an active work on the creation of “Uber on the blockchain.” The only problem is that not all industries need the use of the blockchain.