The most common urban legends in the world of cryptocurrencies and blockchain

Cryptocurrency and blockchain technology are increasingly discussed and fascinating topics, however, many urban legends related to these worlds have continued to spread across the internet for years.

In this article, we try to debunk the most common myths, explore some common misconceptions and provide an explanation about them.

Let’s see everything in detail below.

The biggest urban myth about cryptocurrencies: Bitcoin is a speculative bubble that is set to burst

Obviously, the most famous urban legend in the world of cryptocurrencies relates to this Bitcoin And the trend of its financial value.

Many non-experts already believe that Bitcoin is a speculative bubble ready to burst at any moment.

According to this theory, the price of the major currency in the market will undergo a strength manipulationdestined to collapse to zero.

There are even those who compare Bitcoin’s history to the tulip bubble of 1636, suggesting that cryptocurrencies are a passing fad with a short lifespan.

This thesis is supported by the ideas that there is maximum Price fluctuations and lack of intrinsic value to justify the current quote.

However, in reality, Bitcoin has already proven on several occasions that it is a real financial investment asset, and not a temporary bubble.

Unlike the tulips in Harlem, here there is a much broader history that goes from 2009 to the present day.

The price of Bitcoin has fallen significantly several times, due to the strong speculative element, but it has never fallen to zero and is not even close to that.

As many know by now, its trend falls within large 4-year market cycles.

Every cycle Bitcoin reaches a new level Historic higha higher low than the previous low, highlighting a long-term upward trajectory.

The monthly logarithmic chart speaks for itself.

Cryptocurrencies are only used for illegal activities

The second most famous urban legend is based on The belief that cryptocurrencies are primarily used for illicit activities.

At the dawn of the expansion of this technology, in 2011, we were unable to respond to this statement.

In fact, during the black market boom Silk RoadBitcoin has been widely used as an exchange currency within the Dark Circle.

It is estimated that at least half of all existing Bitcoins have passed through the Silk Road, which has greatly contributed to its popularity in the web world.

But as of today, things have changed dramatically: tightening domestic and international measures Systemsas well as the development of tracking systems on the blockchain, have contributed to making this sector cleaner.

There are still inappropriate uses of cryptocurrencies, with criminal organizations using them for illicit purposes, but we are talking about a very small percentage of all posts.

The majority of cryptocurrency exchanges, as well as all centralized crypto services, now require KYC verification With users’ personal data, in order to discourage criminal use.

Things are no longer as simple as they were in 2011: large corporations, government agencies and financial institutions are adopting cryptocurrencies for their transparency and security.

Cryptocurrencies are completely anonymous

Another urban myth that goes hand in hand with the previous one represents the false belief that cryptocurrencies exist entirely unknown.

Many argue that cryptocurrencies are an asset capable of offering a high level of privacy and anonymity to those who use them.

However, unfortunately, it is just a big misunderstanding: blockchain Technology is completely open and transparent, leaving everything that happens in the virtual world on its books.

Anyone can consult the blockchain to find historical transactions in cryptocurrencies and trace their initial existence, at least in part.

Cryptocurrencies like Bitcoin are actually “Fake anonymous“This means that although they are not linked to real identities, they can be tracked and linked to people through in-depth investigations.

It is actually no coincidence that when major scandals occur in the world of cryptocurrencies, such as thefts of billions of dollars or large-scale operations… Money laundering Regulatory authorities are often able to identify those responsible for activities, with the help of blockchain technology.

There are actually completely anonymous currencies, such as Monero and Zcash, but they are increasingly excluded from the rest of the market due to potential negative effects.

Cryptocurrency mining consumes a lot of energy and is very polluting

This is also an urban legend that is talked about a lot, even in the news often by people who don’t have much knowledge about it.

Many people argue that cryptocurrency mining, i.e. the activity of digital extraction through the use of computing power, is energy-unsustainable.

Although part of this common idea is true, keeping in mind that… Mining Bitcoin requires a consumption of 87 terawatt-hours per year, and there are factors that are never taken into account.

First, many mining operations are resource-based Renewable energy And more energy saving solutions.

This scenario will increasingly lead to expansion, as miners find an economic advantage (game theory) in using green sources.

Moreover, emerging technologies e.g Proof of stakeIncreasingly important, they aim to reduce environmental impact compared to traditional mining methods such as proof of work.

Finally, it must be noted that even in the face of improvements and renewable energy sources, mining is an essential activity for this sector and is not wasteful.

Talk of waste, when energy resources are committed to reaching a distributed consensus within a global network in which billions of dollars circulate, is inappropriate.

Bitcoin allows anyone to freely exchange money and participate in financial freedom, and therefore must match the energy usage it deserves.

Cryptocurrencies have no intrinsic value and exist only for speculation

The latest urban legend that we will discuss in this article relates to the idea that cryptocurrencies are devoid of intrinsic value and are only used for speculation.

Many critics of this sector repeatedly say that digital currencies have no real use outside of trading, And its value is artificially inflated.

The truth is that cryptocurrencies derive their value from supply and demand, like any other currency or asset.

Furthermore, the underlying technology and practical applications of blockchain contribute to the value of cryptocurrencies.

If in the past the uses were limited, in 2025 we will find a large number of applications in which cryptocurrencies can find their applications.

Just to mention some real uses: Roy, Decentralized financeStablecoins, gaming, digital art, decentralized identity, and AI agents.

It is clear that speculation remains fundamental to the existence of this industry, contributing significantly to the growth of mainstream interest.

Thanks to speculation, users usually discover the world of cryptocurrencies, only to end up falling in love with it by discovering a yet unexplored world.

Finally, let’s remember that we are at the beginning of a digital revolution that has not yet taken over the everyday world, and new use cases will certainly soon be implemented.