What are the most common excuses for not investing in cryptocurrencies? In this article we dismantle the ten most common myths about investing in Bitcoin and other cryptocurrencies.
Here we talk about the ten most commonly used excuses for not investing in cryptocurrencies:
1. "Cryptocurrencies have no intrinsic value"
That statement could actually apply to any state currency. The whole world could one day decide to stop believing in the US dollar and it would cease to have value. Society determines what is valuable and what is not. In fact, cryptocurrencies meet the five criteria necessary to be considered "coins": fungibility (identical and interchangeable units), scarcity (limited number), durability (must be able to withstand over time), transferability (ease of passing from one hand to another), and divisibility (it can be broken down into smaller fractions).
2. "Cryptocurrencies are anonymous"
The different cryptocurrencies on the market have very different levels of privacy. The misconception that cryptos are anonymous comes from Bitcoin, which is actually pseudo-anonymous: the user's personal data is not disclosed during the transaction. However, all transactions are recorded in its public blockchain. However, there are also some cryptocurrencies which are focused on the user's privacy, such as Monero, Dash or Zcash.
3. "It's a bubble"
As we commented in this article, the crypto bubble has not even begun. The emergence of the blockchain, cryptocurrencies and decentralization is opening new markets that did not exist before, as well as new ways of competing with traditional businesses. Evidently, a high percentage of today's cryptographic projects will disappear, but those that survive will reach astronomical levels.
4. "I need special knowledge to buy cryptocurrencies"
While you should always proceed with caution when investing, you don't need to be a computer genius to get started. Today, the experience of buying cryptocurrencies is not different than buying anything else over the Internet: it's just a matter of a few clicks.
5. "Cryptocurrencies are only used by criminals"
Cryptocurrencies have a level of usefulness that transcends the trade in illegal goods or any other covert operation. There are already private entities that use blockchain to record data such as land ownership or create a secure and bidirectional verification of contracts. Even governments are using cryptocurrencies to store and transfer documents. Although clandestine markets may have been the first to adopt them, the potential of cryptos within the margins of legality is in turn unlimited.
6. "It's not real money, and it's illegal"
No one would consider the US dollar to be counterfeit even though its backing is non-existent. Cryptocurrencies like Bitcoin exist as a result of intrinsic value and belief in those values. In addition, most of the world's governments are smart enough to recognize the potential of cryptocurrencies to improve the world. These tools, in fact, can solve some of the most pressing problems affecting humanity.
7. "Volatility will never diminish"
The entry barrier to the crypto world is not as big as some say it to be. As the development of this technology grows, the entry barrier will be lower. In fact, the developers want you to use their product, so they'll find a way to make it easy for you. This will allow its massive adoption, greatly reducing its volatility.
8. "I can't afford an entire bitcoin, so I can't invest"
One of the most common excuses for not using cryptos is that they are very expensive. Most cryptocurrencies can be divided into multiple smaller fractions. This means that you can buy and sell less than a whole unit. For example, the smallest unit of Bitcoin, the satoshi, is one hundred millionth of a bitcoin. So, there is no minimum amount to enter, and with a few euros you can also invest in Bitcoin or any other cryptocurrency.
9. "It's too late to invest"
Although cryptocurrencies have been around for ten years, the industry is still in its infancy. As in traditional financial markets, prices fluctuate, and it is best to choose the right time to enter. But the train hasn't left the station yet, so start early and be patient. In the long run, it could be a pleasant surprise.
10. "They're just numbers on a computer"
Indeed, cryptocurrencies are numbers on a computer. But the vast majority of the transactions we make in fiat money are also. If it's the paper that makes you feel better, paper is cheap, and it's very easy to print banknotes in crypto: you only have to create accounts with fixed amounts in them and print the private keys.
Excuses for not buying crypto
As we have seen, excuses for not investing in cryptocurrencies, even though they may have a real basis, go without saying. It never hurts to learn, try and, just in case, save some money that no central bank controls and no government can confiscate. Don't you think it's worth taking the risk?
Warning for intrepid sailors: if you decide to invest, be well informed of where you put your money, and never invest what you cannot afford to lose. Despite their enormous disruptive potential, cryptocurrencies are still a very high-risk financial product.