Cryptocurrency Myths Every Student Should Know

 Most university students dream of starting their own business while studying. Crypto-related businesses are particularly sought after at this time in technological development. So there are some things they should think about before diving into the cryptocurrency business world.
Overall, digital currencies have become one of the most costly yet profitable investment factors. Especially bitcoin, which is now worth $52,981 USD. Prior to cryptocurrencies, gold and company shares were the most popular forms of investment among the general public.
However, since the advent of cryptocurrency and simple methods for purchasing or obtaining these digital currencies online, the general public's interest in it has grown. Today, you can legally and quickly convert BTC to USD.

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Here's a fact about human behavior: when something new enters the market, non-authentic facts about it manipulate people's minds.

Similarly, since the public introduction of cryptocurrency, there have been several myths that you may have heard from various sources.

Not only that, but some newcomers to the industry believe in cryptocurrency-related myths and are disappointed.

Today, we'll look at the top ten cryptocurrency myths that young people should be aware of. Here are some "true" facts that dispel these myths.

Let's get started!

Myth 1: Cryptocurrencies are tax-free.

Many students believe that cryptocurrency is an online business that allows them to avoid paying taxes. When researching further, you may come across a claim that cryptocurrencies are not controlled or governed by the government or banking institutions.

Indeed, it is a self-contained digital currency controlled by computer systems. That is correct. However, a "False" result of this fact is that cryptocurrencies are not taxable.

Again, myth-supporters will back up their claim with the following arguments:

Because neither the government nor the banking system creates or controls cryptocurrencies such as Bitcoin. As a result, they are unworthy of receiving "a portion of profit" in the form of taxes.

This is a compelling argument.

However, the truth is as follows:

To begin with, governments all over the world do not recognize cryptocurrencies as legitimate currencies. Indeed, cryptocurrencies such as Bitcoin are capital assets for banks (meaning, stock in the hands of a businessperson or investor). As a result, cryptocurrencies, like other capital assets (such as freight), are still taxable.

In the United States, for example, the government taxes cryptocurrencies based on the holder's income. That is, if a cryptocurrency investor earns $40,000 USD per year, he or she is not required to pay taxes. However, if your annual income exceeds $441450 USD, the 15% tax rate remains in effect and must be paid.

Similarly, if the income is higher, 20% of it is still taxable. However, certain conditions apply, such as the bitcoin holder keeping bitcoin(s) for more than a year. Aside from that, long-term and short-term capital gains play a significant role in the bitcoin tax calculator system.

Myth 2: Cryptocurrency does not have the same value as real currency.

It is human nature in today's developing world to believe in what he can see!

Isn't that correct?

However, the world has changed in the twenty-first century. Technical experts all over the world have created a "virtual" universe in which humans exist in the form of "data," with everything from online shopping to online payments disappearing.

As a result, the world is currently divided into two camps: those who believe cryptocurrency is real money and those who do not.

But here's the truth: cryptocurrency is the same as real money. It has now become common. Even high-end department stores like Target accept cryptocurrencies like bitcoin and litecoin as payment.

However, the value of cryptocurrencies is so high that they are not widely understood by the general public.

For the most part, one bitcoin is worth around 52 thousand USD(s), which is a substantial sum. When the first decentralized cryptocurrency, bitcoin, entered the market in the 2000s, it was worth less than 0.01 USD.

Later in 2013, bitcoin began to rise in value, reaching over a thousand US dollars.

Apart from the above arguments, people believe in this myth because the "Gaining Procedure" of cryptocurrencies is incomprehensible to them.

In the beginning, for example, bitcoin mining was a major stage for people to obtain bitcoins. And this mining includes the verification of transactional blocks, which necessitates a thorough understanding of computer systems and networks.

As a result, history shows that cryptocurrencies are designed for hackers, tech savages, and cloud-based businesses. But it isn't! Cryptocurrency can now be purchased and invested in online by gamers, influencers, and the general public.

Myth 3: Bitcoin is illegal and leads to money laundering.

The general public who is interested in finance and political arguments frequently refers to cryptocurrency as an illegal form of currency.

Bitcoin, one of the most prominent cryptocurrencies, has been operating successfully in countries such as the United States, India, and China since 2008.

Not only that, but China's finance minister has publicly stated that bitcoin is a "commodity" rather than real money.

It is, however, not considered illegal.

Countries such as Russia, Algeria, Bolivia, and Ecuador have prohibited the use of cryptocurrencies. The myth is debatable in this case because cryptocurrency is equally valuable as legal tender in the United States.

Genuine residents in South Korea can also buy cryptocurrencies or mine them online. As a result, cryptocurrency is not illegal in a few countries.

For example, India (which is still in the development stage) is promoting the use of cryptocurrencies to strengthen the power of digital money transactions and security systems.

As a result, it is possible to state that cryptocurrency is not illegal. However, it is illegal if an investor fails to pay taxes on cryptocurrencies (after making a taxable profit) or uses cryptocurrencies to run illegal businesses.

Above all, "cryptocurrency laundering" has become a type of cybercrime.

To begin, cryptocurrency laundering occurs because online websites, apps, or wallets allow users to enter a fictitious name into the wallet. That is, the user's identity remains concealed. This type of payment is known as pseudonymous. It is, however, extremely rare.

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