So much has changed in the world of cryptocurrencies in the past decade or so. Bitcoin ushered in a new age of digital and decentralized currencies back in 2009, and still, many have concerns about using cryptos. With governments trying to ban them and the majority of ordinary citizens showing little interest in them, it’s safe to say that cryptocurrencies still have a long way to go in terms of public acceptance.
While we do know that the major concern for central banks and governments is the threat cryptocurrencies pose to fiat currencies, it’s not as clear why individuals aren’t more excited about them. Between the ease of accumulating cryptocurrency through a crypto faucet, and the huge potential for investment, there are so many reasons to take interest in cryptocurrencies.
Let’s look at some of the fears surrounding cryptocurrencies, and why they aren’t as frightening as people think.
A Lack of Knowledge and Understanding
People tend to fear what they do not know and cryptocurrencies are certainly no exception. With any new concept, there’s the risk of scaring people away. As a relatively new technology, cryptocurrencies come with several unfamiliar terms, from ‘crypto faucet’ and ‘mining’, to ‘blockchain’ and ‘public key’. It can be a lot to take in. For anyone who hasn’t taken the time to learn about digital currencies, the idea can seem far-fetched.
Much of the fear surrounding cryptocurrencies could be erased through a little education. There are many resources available on the basics of cryptocurrencies and cryptocurrency faucets, as well as their progress and future. By taking some time to learn about them, it would become clear that there’s very little to be afraid of.
The Matter of Legal Tender
As cryptocurrencies are neither made nor controlled by central banks or governments, they are not considered legal tender. As a result, they are looked upon with much apprehension. The legitimization of fiat currencies comes from their legality. When things aren’t legitimized by government backing, they tend to seem a little ‘shady’. That, coupled with crypto’s potential for criminal use, makes it something that people are hesitant to deal with, even if they’re being handed free crypto from a cryptocurrency faucet.
It is important to note, firstly, that even fiat currencies have long been a part of criminal activity. Secondly, it’s important to understand that fiat currencies are only truly valuable because they are deemed so by governments. Inherently, their value is as arbitrary as we like to think cryptocurrencies are. We need to think of cryptocurrencies as having the potential to hold the same legitimacy that fiat currencies do.
Cryptocurrencies are notorious for their volatility. Their value can rise and fall dramatically in a matter of seconds. As a result, they are often considered too risky for investment. But while we cannot deny how volatile crypto is, it’s also one of the worthwhile reasons for investing in them. If you are going to invest and trade, you’re going to have to take some time to understand crypto and how it can work within your own risk limit. Investing in cryptocurrency involves risk the same way investing in other currencies does. However, cryptocurrency investments have the potential to be extremely profitable.