What the Average Consumer Knows About Cryptocurrency

What the Average Consumer Knows About Cryptocurrency

Sometimes it is easy to forget that for large sections of the population, little or nothing is known about cryptocurrency and how it works? Even worse than no knowledge is incorrect assumptions of the facts surrounding what the opportunities and benefits of crypto are. Here we look at what the general public thinks about cryptocurrency so we may better understand how to challenge misinformation and educate the public on the truth.

Bitcoin

One thing we often hear is that Bitcoin is the only cryptocurrency, or rather it the only one that is known about, and even then, not very accurately. It often surprises people that others even exist. The big trick is convincing members of the public to trust cryptocurrencies, never mind just Bitcoin. Educating people will give them ar choice when investing, but the risk for any currency investment should be made clear.

Is It Illegal?

Legality is a grey area in many aspects of business, finance, and life. However, one misconception is that cryptocurrencies are illegal and should be avoided. There are a few countries where this is true, and if you live in one of these, then be aware. It should be made clear that in the vast number of cases, it’s not the currency that is illegal, the crime is what is done with it. It is true that since crypto transactions are difficult to track, they can be used for illegal and distasteful activities. But you can murder with a tire iron, but that doesn’t mean changing a tire should be made illegal.

Computer Genius

Another erroneous assumption is that you need to be tech-savvy to use cryptocurrency. If you are looking to get into mining for currency, then yes, you will need some technical skills. But the general public can buy, sell, and use cryptocurrency, and anyone can exchange DOGE to BTC or any other crypto easily.

You’ll Lose Your Money

Anything unknown in life seems like more of a risk than something that is known. It is for these reasons that cryptocurrency can seem too risky for large numbers of people. But any risk is fine, so long as it’s known and managed. It should never be claimed that investing is without risk, and care must be taken to research your investment.

It Will be Shut Down

This concern goes back to the discussion over the legality of cryptocurrencies. Indeed, certain currencies are not legal to use in certain jurisdictions, that is not a reason that we could see the whole system shut down. The decentralized nature of cryptocurrencies means that there is nothing to shut down. A government could pass a law to make use of all crypto illegal, but in practice, there is little that they would be able to do to enforce this. It would be down to the individual consumer to choose whether or not to obey these laws, for example, in India they are not legal currency, but that does not stop us from owning them.

This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.