9 Common Misconceptions About Blockchain Investments: Regulatory Risk Is a Thing of the Past

There are countless misconceptions spread about Blockchain investments every day on the internet.  As with any new technology, it takes some time to weed out the myths that spring up around it.  In this article, we will share 9 of the most common misconceptions about these investments and set the record straight on this revolutionary technology.

9 Common Misconceptions About Blockchain Investments: Regulatory Risk Is a Thing of the Past

1. Blockchain Has Regulatory Risk

Actually, regulatory risk is a thing of the past. While there have been regulations developed for Bitcoin, there’s no risk of future regulations holding back the currency.  Blockchain is a technology independent of any government or group of people. Considering how much support there is for Bitcoin at this point, there’s really no risk anymore. It’s grown too powerful to be banned.

2. Blockchain Is Hard to Understand

Blockchain is actually a very simple technology. It’s designed to allow transactions of cryptocurrencies, among other functions. The ‘Blockchain’ is a record of all cryptocurrency transactions that have ever occurred, and it’s distributed across a network of computers. This means that anyone can confirm which transactions have actually happened.

3. Blockchain Is Not Secure

All of the computers on the Blockchain network have a record of transactions. Because of this, it’s impossible to fake a transaction or counterfeit cryptocurrency. There is a limited amount of each cryptocurrency in existence, and it can’t be forged. Therefore, Blockchain is actually the most secure transactional methods ever created.

4. Blockchain Investments Are Risky

New technology always seems riskier than currently established technologies. However, blockchain has been around for more than ten years at this point. It’s well-established, and there is currently $117.81 billion invested in Bitcoin. That shows a high level of investor trust in the currency to keep growing over time, which includes large institutions and banks.

5. Banks Don’t Trust Blockchain

These days, most banks are set up to help people add cryptocurrencies to their investment accounts. While Jamie Dimon, the CEO of JPMorgan Chase, had bad things to say about Bitcoin in the past, his attitude has changed completely. His bank released its own cryptocurrency called JPM Coin. They also have signed on the two largest cryptocurrency exchanges as customers.

6. The IRS Will Come After You

Bitcoin and other blockchain-based cryptocurrencies can grow without being taxed until you decide to sell them. By investing in these currencies, you’re subject to capital gains taxes once you sell them. The key is to focus on long-term investing, because after holding an investment for one year, the tax rate is much lower.

7. Your Investment Could Disappear

Blockchain currencies can be held as securely as cash. You can keep it on an exchange, such as Coinbase, which is essentially a marketplace for cryptocurrencies. If you want it even more secure, you can put it in cold storage – on a hard drive that’s not connected to the internet. If you put that hard drive in a safe, no one but you will be able to access it.

8. Only Tech-Savvy People Can Invest in Blockchain

The accessibility of Blockchain has advanced to the point where anyone can invest in cryptocurrencies. It’s even available through popular apps like Robin Hood, which charges no fees to trade cryptocurrencies. No matter how much you struggle with technology, investing in Blockchain can be as simple as downloading an app.

9. Bitcoin Is Not a Real Currency

A common argument against Blockchain cryptocurrencies is that they ‘aren’t a real currency’. Every day, more merchants are willing to accept Bitcoin for purchases, and its popularity grows. It’s gotten to the point where you can buy just about anything with Bitcoin. These days. Blockchain-based currencies meet all the standards of being considered a ‘real’ currency.

Those are just a few of the countless misconceptions surrounding Blockchain and Bitcoin. We hope you’ve gained some useful knowledge from reading this article. If you’d like to learn more, keep up with us at Coin Sick.
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