What Are Some Common Misconceptions About Cryptocurrencies?

What are some misconceptions about cryptocurrencies? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world. 

Answer by Tom Pageler, Chief Security Officer, BitGo, on Quora: 

The one misconception I hear the most is that the market for cryptocurrency is a wild, wild west without any guardrails. This may have been so before companies like BitGo were created; however, BitGo was specifically built from the ground-up to safeguard digital assets and provide the infrastructure, policies and protocols for investors to feel safe integrating cryptocurrencies into their portfolios.

Digital assets are still in their infancy, which can lead to confusion and misunderstandings in the marketplace. Another misconception is that cryptocurrency is only used for nefarious purposes or for making illegal purchases on the dark web. The fact is that cash is by far the preferred payment method for illicit dealings, not cryptocurrency.

I have also often heard that crypto is bad for the environment. According to a report last year from the World Economic Forum, blockchain and cryptocurrency have tremendous potential to boost the global economy and help disenfranchised populations, while it continues to seek more efficient and sustainable ways to to mine new cryptocurrency. One example is Ethereum’s Proof-of-Stake model, which is more energy efficient and sustainable than the Proof-of-Work models.

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