‘Bitcoin is illegal’ and other cryptocurrency myths that you need to stop believing

Reading time: 2 minutes

Is Bitcoin illegal? And other cryptocurrency myths you need to stop believing.

That cryptocurrencies have been drawing attention is nothing new, digital currencies are no longer an uncertainty for many investors around the world, and the forecast is an even greater advance for the coming years.

However, there are still some myths that surround the crypto universe. Here are 5 myths you need to stop believing.

Are Bitcoin and other cryptocurrencies illegal?

Although many people think that cryptocurrencies are illegal, this is a myth, both bitcoin and other cryptocurrencies are legal. Some countries are implementing some regularizations, some stricter than others, but digital currencies are not considered illegal.

The only caveat is related to China, which in 2021 started to consider transactions with cryptocurrencies as illegal in its country, but the coins can still be used for purposes of determining inheritance.

Cryptocurrencies have no value and, therefore, there is no profit potential

This is one of the biggest cryptocurrency myths, as they are digital assets that cannot be seen or touched, many people believe they have no value, but with the high number of investments, cryptocurrencies are as real as fiat currencies.

All it takes is for people to start believing in a currency for it to gain power, and with more and more people invested in cryptos, assets are being valued more and more.

Another differential of cryptocurrencies is related to their investment value. Unlike other forms of investment, in which it is necessary to invest substantial amounts of money to make a profit, it is possible to buy cryptocurrencies for a small amount and still make a profit.

Cryptocurrencies have no use in the real world

The use of digital currencies for payment is already a reality, many companies already use it to carry out business, services and supply products. It is already possible to recharge your cell phone with bitcoins in some countries.

Large companies like Starbucks, Amazon and many others have already accepted this new reality and use cryptocurrencies as payment methods. The growth perspective for this segment is promising, even more so with the beginning of the regulation of currencies by many governments.

Cryptocurrencies are used for illegal transactions

Because they are decentralized, many people believe that cryptocurrencies are only used for illegal transactions, in fact, they have already been used, as well as other currencies, but the lifting of the ban on the crypto trade attracted many institutional investments, making them a fiscal transaction respectable and an important asset of the class.

Despite not having their creation regulated by banks, like other currencies, much has been invested in the security of transactions, aiming to eliminate illicit trade with currencies. That’s why many companies already use KYC to register new users who want to buy cryptocurrencies.

The cryptocurrency is not subject to taxes

This is one of the biggest cryptocurrency myths, although transactions take place in a decentralized environment, profits obtained with cryptocurrencies are subject to capital gains tax. How this tax will be collected and who will vary from country to country, with some being more flexible than others.

Leave a Reply

Your email address will not be published. Required fields are marked *