Most Popular Myth About Cryptocurrencies

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Myth About Cryptocurrencies

What is the most popular myth about cryptocurrencies?

Cryptocurrencies have real value and even have a variety of practical applications in the real world. That is the stance of a Forbes writer who was able to convincingly argue why it’s actually a myth to think otherwise.

It’s human nature to try to explain the things they observe in the real world. Since ancient times, people tried their best to explain why the sky is blue or what makes the sun shine or where the sea came from giving rise to various myths that, while certainly entertaining to read, are unsupported or even go against the scientific explanation.

The same need to explain things applies to the baffling volatility of cryptocurrency prices as well. This is certainly understandable since the market has been behaving erratically in the past months; it would be an absolutely terrifying concept if the market just moves on its own accord without any reason.

One of the most common reasons given to explain away the volatility of cryptocurrency prices is that these digital currencies have no intrinsic value. However, Forbes contributor Brian Roberts does not agree with this line of thinking and even suspects that the idea that cryptocurrency does not have real value is probably the biggest myth in cryptocurrency.

According to Roberts, “virtually all the major coins have real-life goals, and are tied to either improving (or disrupting) existing industries.” He then supported this argument with a couple of examples showing how ethereum and ripple are actually created with a specific purpose in mind.

Ethereum Excels in “Smart Contracts”

One of the strengths of the cryptocurrency Ethereum is in its use in executing what is known as “smart contracts.” Now, this is a relatively new concept and is helpful when two transacting parties do not really know each other that well. With “smart contracts,” transactions are basically safer because they will only be fulfilled once the previously-set conditions are met.

A perfect example of the usefulness of “smart contracts” appeared in a Newsweek article back in October 2017.  Michael Arrington, the founder of TechCrunch, actually bought a Kiev apartment worth $60,000, even without going to Russia himself. This shows just how blockchain, as well as cryptocurrencies, can be used in business transactions. Of course, Arrington used the Ethereum blockchain network for the transaction.

Ripple Is For Corporate Solutions

Meanwhile, Ripple is geared toward speeding up international transactions and money transfers. Money transfers coursed through traditional banking channels via the SWIFT systems sometimes takes days to arrive at its intended recipient. That’s where Ripple comes in with its speedy and efficient transactions.

“The inefficiencies of global payments don’t just affect banks, they also affect institutions like MoneyGram,” Ripple’s CEO explained the advantages of the cryptocurrency compared to MoneyGram. “By using a digital asset like XRP that settles in three seconds or less, they can now move money as quickly as information.”

And it’s a lot cheaper too. According to the company’s blog post, transaction costs are reduced by as much as 60 percent. Apparently, Ripple is positioned to tap into the huge international fund transfer market which is valued at $150 trillion. The crypto’s value is obvious at this point as it can speed up normally sluggish transfers while reducing their costs at the same time.

Meanwhile, an upcoming cryptocurrency called Spyce is bound to make waves once it hits the market later this year. Supported by the d-net framework which prides itself as a net neutral entity, the upcoming digital coin will be tamper-proof with an unbreakable security system, speedy transactions due to its faster network data transmission and decentralized data storage.

What other myth about cryptocurrencies do you know? Comment it below.


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