Myths Vs Facts of Cryptocurrency

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27 Jul 2021

5 Min Read

Preevena Jayabalan (Guest Contributor), Ailyn Low (Editor)
IN THIS ARTICLE

CEO of Bitto Exchange, Nic Chin uncovers misconceptions to give you a clearer understanding of cryptocurrency.

 

We’ve all had that one friend who posts cryptocurrency price drops on their Instagram stories and we’ll definitely be intrigued to know more — some even with the intention of investing in it. 

 

Googling about cryptocurrency might help but the real problem starts when you start consulting inexperienced people about cryptocurrency, leaving you in utter confusion especially when they contradict with your findings online. Plus, this would add on to the stereotype that the cryptocurrency industry is a scam amongst many other things. 

 

Worried? Fret not as here are 5 common misconceptions about cryptocurrency, debunked by cryptocurrency trader, co-founder and CEO of Bitto Exchange Nic Chin.

1. Cryptocurrency is illegal

A: No… if they’re regulated — Actually, despite Malaysia being slightly behind in regards to accepting Fintech and future technology related to blockchain, Bank Negara Malaysia (BNM) has actually recognised 4 market operators. And that’s a huge step forward!

 

But again cryptocurrency falls on the borderline as one of its primary reasons for successful global acceptance is that it can't be regulated. So crypto such as bitcoin, ethereum, bitcoin cash, and XRP are some of the recognised cryptocurrencies by BNM.

2. Cryptocurrency is really just another scam, ponzi scheme, or pyramid scheme

A: Nope… But be careful!

 

There’ll always be negative aspects to any industry, but be alert, and do your research.

 

One thing that makes blockchain and cryptocurrency great, is that if the company is transparent enough, you can find virtually everything about the company. And that should be the right way. Being related to blockchain puts you at the forefront of Fintech and technological development.

 

If the company or crypto cannot even show up with a simple Google search, then you know something else may be going on.

 

As more and more companies are heading towards Fintech, many aren’t equipped with the right knowledge. Build your foundation in Fintech here.

A book titled "The Future of Cryptocurrency"

3. Cryptocurrency is real money that can be used as payment

A: Yes — and this will continue to grow and expand whether people accept it or not. Why? 

 

Because this is the forefront of technology advancement in terms of convenience, transparency, and security. China is an extremely good example of what's to come in the future. Did you know that majority payments are made through your phone in China? No one really uses fiat currency (currency usually regulated by the government) anymore.

 

That’s the future of cryptocurrency. 

4. Cryptocurrency is a fad and based on trends that won’t last long

A: Nope — when the internet first came into existence, it was said to be a trend that would disappear. When the .com bubble burst and smartphones came into existence, the same thing happened.

 

Brick and mortar businesses said that, in the end, there isn’t a need to go online. 

 

But look at us today, we’re so connected globally that virtually everything we do uses the internet and smartphones. Cryptocurrency is the same, regardless of whether you want to be a part of it or not. It’ll be integrated into your life sooner or later.

5. Cryptocurrency is more than just BitCoin — but that’s what most people know

A: Yes — cryptocurrencies are now used in real estate, payment gateway systems, international transfers, selling of art, and virtual assets. 

 

Now the interesting thing about cryptocurrency is that it’s the only platform and medium that allows anyone in the world to potentially be the next Mark Zuckerberg. It’s the only medium in which an idea can turn into a reality with millions of dollars being pumped into making it true. It’s also the one mechanism in the world that can be truly decentralised, making it possible for anyone to potentially gain financial success.

 

There are many utilities for tokens and coins out there. It’s only a matter of time before more than 20% of the world joins cryptocurrency. Because at this point, if you’re already into cryptocurrency, congratulations! You're in the top 15% of the world's population moving forward.

Preevena Jayabalan is an alumni of Cambridge A-Levels at Taylor's College. She was also the Vice President of Marketing of the Taylor's Lakeside Model United Nations Club, Co-Lead for the Public Engagement Department of Senate18, and one of the 45 selected fellows for the Felo Parlimen Malaysia program. She's a bibliophile and a strong human rights advocate.

Taylor's University/College does not take into account of your personal investment objectives, specific investment goals, specific needs or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here.

 

The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Taylor's University/College.
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