Top five cryptocurrency myths

21 Jun 2018

This article first appeared in Raconteur on 21 June 2018.

Crytocurrencies are often viewed with suspicion because of alleged links to criminal activity. Many believe, wrongly, that bitcoin and other cryptos attract dark-web lurkers because of their anonymity. While users can be pseudo-anonymous, every translation on the underlying blockchain is traceable, by design. Kerim Derhalli, chief executive of Invstr, says: “The single most-outdated misconception is that bitcoin and other ‘shady’ cryptos are the preserve of drug dealers, child abusers and weapons merchants. The association of bitcoin with criminality is a throwback to its earliest days and has been deeply unhelpful.”

George Morris, partner at global law firm Simmons & Simmons, adds: “The majority of cryptocurrencies are not entirely anonymous; in fact they have a layer of transparency that sets them apart from physical commodities and cash. The physical US dollar remains the number-one instrument worldwide for nefarious transactions and that is not going to change soon. Cash remains king as it provides a level of anonymisation that cannot be replicated by any cryptocurrency.

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