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March 15, 2023

Myths and facts about the crypto industry

The use of crypto technology has a lot of benefits that every user can appreciate. Features such as anonymity, better security, and faster transactions make a great name for crypto in the grand scheme of things.

However, there are a few myths about crypto that simply need to go away. These false narratives put its name in jeopardy and can potentially scare people away from investing in a huge opportunity to win high profits. 

There is a lot of misinformation spread across the internet about crypto, and it’s time to address this once and for all. On top of its interesting facts, there are myths that simply need to be busted so crypto’s reputation remains intact. 

Crypto facts every investor should know

The crypto world is heavy with interesting facts and information that will pique your interest. Let’s check out some of the more interesting facts that you should know before investing: 

The creator of Bitcoin remains anonymous to this day 

In 2009, Bitcoin was launched by the pseudonymous Satoshi Nakomoto. There are a lot of guesses and speculations regarding the identity of this mysterious figure. But, nobody still knows who he or she even is. At this point, it’s not even impossible to think that Satoshi Nakamoto is a network of people who organised the creation of Bitcoin. 

You need to pay taxes for crypto gains 

Just as you thought that you’ll be tax-free when investing in crypto, there are certain taxation laws that force you to pay up crypto taxes for your investments. If you invest in crypto and gain a profit, you have to pay capital gains taxes. However, this depends on the jurisdiction you are in.

Depending on how you manage your crypto portfolio and how you acquired them, you might have to pay extra taxes based on certain long or short term investment gains or income. Taxation in crypto is just as complex and systematic as it is in fiat currency. It might surprise many investors that they need to pay up taxes, which is why you should learn a thing or two about tax laws about the crypto market. 

The first BTC transaction was for a pizza delivery 

In May 2010, a man from Florida paid 10,000 Bitcoins (BTC) for a mere two boxes of pizzas. In the record books, this is considered as the first Bitcoin transaction ever made for commercial use. 

At that time, 10,000 BTC was worth around $40 which wasn’t a lot. Having this amount of BTC in 2023 will instantly make you a millionaire. In today’s time, 10,000 BTC has a market value of around $190 million. 

Africa’s largest crypto market is Nigeria 

Nigeria is slowly becoming the largest country in terms of crypto adoption. Nigeria is heading towards a positive trajectory of superseding it in a few decades per the Merchant Machines’ data. 

The biggest reason why crypto is growing at an alarming rate in Nigeria is because their native currency, the Naira, is depreciating in value. As this continues, Nigeria has the opportunity to influence neighbouring African countries to do the same. 

A man once threw his disk drive that’s worth 7,500 BTC 

A Wales resident, James Howells, once threw his computer hard drive by accident with 7,500 BTC on it in 2013. Upon realising that the value of BTC increased tremendously in the following years, he instantly regretted his decision and went on a quest to find his lost hard drive. 

He asked permission from his local city council to give him access to excavation tools to dig up the missing drive from the landfill he threw it in. To persuade the local authorities, he promised that he would share a portion of his proceeds if they allowed him to look through the landfill for the hard drive. 

Until now, he never retrieved the hard drive that’s worth about $181 million. However, he hasn’t given up this endeavour and will likely find it given the time and effort. Unfortunately, there’s no assurance that the drive will function properly after years of being buried under dirt and grime. 


Crypto myths you need to be aware of

In contrast to the interesting facts about crypto, there are several myths about the industry that you should pay attention to. Below are some of the most notorious ones out there: 

Bitcoin and its own blockchain are interchangeable

Beginners to Bitcoin and blockchain don’t fully understand these concepts which leads to common misconceptions surrounding them. There are some exceptions, but each crypto has its own blockchain and can only be traded on said blockchain. This means that you can’t get to the Bitcoin blockchain and trade Ethereum or vice-versa. 

What you should take away from this is that there are multiple crypto in the market that have unique blockchain features. This means that they function as separate entities where the blockchain is not the crypto itself—but rather, a platform that lets you use the crypto for its numerous good uses and features. 

Crypto has no clear value because it is not backed by a commodity 

This is one of the most notorious myths in the crypto industry, but the value is subjective by its nature. This is true when it comes to currencies in general. A common misconception is that crypto has no intrinsic value because it isn’t backed by a commodity like gold or silver. 

However, this concept fails to recognise the fact that these days, fiat is not even backed by commodities like gold or silver anymore. Also, commodities themselves don’t hold any intrinsic value as well. 

The value of crypto comes from the market of buyers and sellers that give it value. That said, crypto is subject to a lot of economic forces that influence its prices too. These forces can be the fact that the more crypto there is in circulation, the lower its value will become. 

Even so, crypto like Bitcoin are not infinite in quantity which means that they make for a more stable form of currency altogether than fiat in which more will always be made.

Crypto is too complicated 

A lot of people stay away from crypto because they claim that it’s too complicated to understand. However, you can pretty much say the same thing about stocks and other financial intermediaries. 

Even fiat currency when looking into it more in depth is a complicated subject to tackle. Crypto is no different. While it is indeed complex by nature, you don’t have to be an expert about the industry to invest in some. All you have to do is learn the basic concepts of crypto like how blockchain technology works and you’re good to go. 

Investing in crypto is like gambling

While the crypto industry has experienced extreme levels of volatility in the past few years, that’s to be expected from a young and growing market. Since Bitcoin’s launch, it has slowly gained long-term value with its own market cap exceeding a whopping $1 trillion. 

Due to its volatile nature, a lot of people think that it’s like gambling because you’re essentially risking huge losses that are out of the norm in the financial market. However, stocks and other financial investments have their fair share of volatility as well. It just so happens that crypto is more so than these instruments. But that doesn’t place it in the category of gambling. 

Crypto is a scam 

Another reason why crypto is receiving a bad reputation from a lot of people is because some think that the market is a complete scam. However, the crypto market is just another victim of other people trying to take advantage of its imperfect system and try to deceive others

You have to take note that other financial industries like banks and lending companies also experience fraud from its more devious users. But this doesn’t mean that the entire industry is a scam. In crypto, people are more likely to get scammed because legal enforcements haven’t entirely outlawed them yet. 

Like any financial transactions you deal with, you should know how to manage your risks properly to avoid getting scammed in the first place. Fortunately, crypto’s security features are robust and you can rest peacefully knowing there’s a strong sense of safety when investing in crypto—regardless of what news you hear about big scams happening around. 

Crypto is a continuously growing industry that will give users a ton of benefits as its technology further improves. Removing all the myths about it and researching concrete facts regarding crypto is widely beneficial for your investment endeavours moving forward. 

If you have a few crypto lying around, be sure to use them as wagers in the best crypto casino, Bitcasino. Here, you can win huge payouts and Bitcasino bonus when playing the best Bitcasino slots and Bitcasino live casino games around. 


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