11 Misconceptions People Have About Blockchain

Blockchain: The Future of Connectivity

Joe Hunt

1. Blockchain Is Omnipotent and Going To Change the World

We have to admit that when some of us first started out in blockchain, it was advertised as a magical solution to all of earth’s problems. Some of us still believe this, but the luster has faded a bit, once they realized it’s technology, not magic. 

2. Coin and Token Are Interchangeable Terms

Would you call an ID card and a credit card the same thing? Coins represent a value of something, and tokens allow you access to trade specific assets.

3. Blockchain and Cryptocurrencies Are Only for Fintech

The applications for blockchain are limitless and apply to nearly every sector that exists in the global economic system today. Agriculture, energy markets, education, legal - all this fun is not just for Wall Street. 

4. Blockchain Died in 2017, and There’s No Point 

Newsflash, we’re still here. Like any market, there are ups and downs. Blockchain is a legitimate technology with billions invested - this is not snake oil. 

5. Using Blockchain Is Free

Hate to bust this myth, but just like credit cards and debit cards sometimes have transaction fees, so does making a transaction on the blockchain. Just take my money already.

6. Only the Mafia and Gangsters Use Cryptocurrencies

We know, we know, ‘crypto’ sounds like something spooky and dark web-ish. But trust us, it’s just the first name that was termed when ‘independent digital currency’ was created. If saying ‘digital coin’ is less scary for you, then we suggest using that. 

7. All Blockchain and Cryptocurrency Transactions Are Secret

Piggybacking off the previous misconception - NO, cryptocurrencies transactions are not invisible and a way to keep the cops off your trail of illicit activity. Quite the contrary, blockchain transactions are publicly recorded on the ledger. 

8. Bitcoin = Entire Crypto Environment

Due to the cultural dominance of Bitcoin, a lot of people think that the entire cryptocurrency and blockchain world is just Bitcoin. But as we like to tell people, Bitcoin is just the tip of the iceberg (10 percent), while the submerged part of the iceberg (90 percent) makes up the rest of the blockchain ecosystem.  

9. All Cryptocurrencies Are the Same Thing

Hate to burst your bubble, but there are over a hundred different types of cryptocurrencies. It works the same way as 'fiat currency,' or dollars, yen, euros, pesos, pounds, yuan, baht - they don't all equal the same value. 

10. Blockchain Is Only for Nerds

First of all, who are you calling a nerd? Second of all, blockchain users come in all shapes and sizes: farmers, oil companies, wall street brokers, computer scientists, lawyers, retail shop owners, anyone that does anything can use blockchain. 

11. Smart Contracts Are Legal Tender

Blockchain folk like to act like smart contracts would be held up in a court of law, anywhere in the world. Unfortunately, this technology is so new that there are few jurisdictions in the world that have even had smart contracts used as evidence. Hopefully soon they will be considered legal tender, but for now, we still need lawyers.