There is so much disinformation floating around about cryptocurrencies. Let us put your mind at ease. Here are some myths that you may have heard, and why they're wrong.

Cryptocurrency is only for Crooks.

We hate to “well, actually” you. But, well actually, it’s incredibly difficult to commit crimes because the blockchain records every transaction that occurs. While it's true that criminals have used cryptocurrencies, the same can be said for any form of money throughout history.

In fact, recent data shows that only a tiny fraction of cryptocurrency transactions are tied to illicit activities. In 2021, just 0.15% of all crypto transactions were related to crimes, and most of those were scams. Although crypto crime did increase slightly in 2023, it's still a very small part of overall transactions.

Governments and international organizations are actively working to crack down on the use of cryptocurrencies by criminals. In the U.S., for example, the Department of Justice has a dedicated team that focuses on prosecuting crimes involving cryptocurrency.

Digital Currencies Don’t Have Value

Value is subjective. What one person sees as valuable might be worthless to someone else. Take Bitcoin, for example: when it first launched in 2009, it was worth fractions of a cent. But by 2021, its value had skyrocketed to $69,000 per Bitcoin, and reached 100K in 2024. This shows how society’s perception can significantly influence an asset's value.

Similarly, Ethereum might not have the same dollar value as Bitcoin, but its utility in powering things like non-fungible tokens (NFTs) and decentralized finance gives it immense value, especially for companies building new financial products on its blockchain.

Many investors and companies now hold cryptocurrencies as assets, and large firms manage billions of dollars' worth of digital assets. Like any other currency or asset, the value of cryptocurrencies fluctuates based on supply, demand, and overall market sentiment.

Cryptocurrencies Aren’t Secure

The technology behind cryptocurrencies—blockchain—is actually quite secure. A blockchain is a distributed database that uses encryption to keep data safe. Each transaction is added to a "block," and each block is linked to the previous one, creating a chain that makes tampering with records extremely difficult.

However, security does depend on the type of blockchain. For example, Bitcoin uses a "proof-of-work" system that requires a large, fast network to keep the blockchain secure. On the other hand, Ethereum’s "proof-of-stake" system requires users to put up valuable cryptocurrency as collateral, making it very costly for anyone trying to compromise the network.

But while the technology itself is secure, there are risks in how people access and store their cryptocurrency. Hacks can happen if you're using a centralized exchange or don't secure your private keys properly. To stay safe, some users store their assets in "cold storage" and only transfer small amounts to their "hot wallets" when needed.

Digital Currencies Are Bad for the Environment

If you've heard that crypto is terrible for the environment, you're not alone. It's one of the most common concerns from people who are curious about digital assets but hesitant to get involved. The headlines make it sound like every Bitcoin transaction is melting glaciers, but the reality is far more nuanced. Let's break it down—simply, honestly, and without the tech jargon.

Where the Concern Comes From

The criticism mostly stems from Bitcoin, which uses a process called proof of work to secure the network and process transactions. This process requires computers to solve complex mathematical puzzles, and yes—it does use significant energy. In fact, Bitcoin's energy consumption is comparable to that of some small countries.However, this comparison can be misleading without proper context. What's often missing from these discussions is that traditional banking infrastructure—including bank branches, ATMs, data centers, and payment processing networks—also consumes substantial energy that rarely gets scrutinized or measured comprehensively.

Bitcoin's Energy Story Is Changing

Here's the part that's often left out of the headlines:Bitcoin now uses more renewable energy than ever before. Recent studies show that over 50% of Bitcoin's energy comes from renewable sources like solar, wind, and hydro. That's a higher percentage than many traditional industries use.Miners are actively seeking out cheap, clean energy. Why? Because renewable energy is usually the most cost-effective option available. Bitcoin miners have a powerful financial incentive to use the cheapest electricity they can find—and increasingly, that's green power.Bitcoin mining is driving renewable energy development. Mining operations are often locating near renewable energy sources, particularly hydroelectric power, because it offers the lowest costs. Some operations are even helping to develop new renewable capacity by providing a guaranteed customer for excess clean energy that might otherwise go unused.Bitcoin can help stabilize power grids. In places like Texas, Bitcoin miners are helping absorb excess energy during low-demand periods and voluntarily shutting down during energy shortages. Rather than straining the grid, Bitcoin mining is becoming a tool to support grid stability and make renewable energy more economically viable.

Not All Crypto Is Bitcoin

Ethereum, the second-largest crypto network, used to use proof of work like Bitcoin—but in 2022, it switched to a new system called proof of stake. The result? Ethereum now uses 99.95% less energy. That's less energy than what's consumed by platforms like YouTube, Netflix, or even traditional banking infrastructure.The majority of newer cryptocurrencies were designed from the start to be energy-efficient, using consensus mechanisms that don't require intensive computation. These platforms can process thousands of transactions while using less energy than a typical household.

The Bigger Picture: Innovation and Trade-offs

The energy used by Bitcoin isn't just waste—it serves a specific purpose. That energy secures a decentralized network that operates without requiring trust in centralized institutions. For many people around the world, especially those in countries with unstable currencies or limited banking access, this represents a valuable trade-off.Additionally, some Bitcoin mining operations are finding creative ways to reduce environmental impact. They're using stranded natural gas that would otherwise be flared into the atmosphere, turning waste into productive energy use.

So, Is Crypto "Bad" for the Environment?

It's more accurate to say: some early crypto systems were energy-intensive—but the technology is evolving rapidly. The crypto space is moving toward more sustainable models, and in many cases, it's actually accelerating clean energy adoption and grid innovation.The narrative that all crypto is environmentally destructive ignores the significant improvements happening across the industry. While Bitcoin's energy use remains substantial, it's increasingly powered by renewable sources and serving functions that many users find valuable enough to justify the energy trade-off.Rather than writing off the entire sector, it makes more sense to support the continued evolution toward more sustainable practices while recognizing the legitimate benefits that these technologies can provide.

Cryptocurrencies Are a Scam

While there have been scams in the cryptocurrency world, cryptocurrencies themselves are not inherently scams. Many people use them for legitimate transactions, and more businesses are accepting them as payment. That said, there are definitely scammers out there who try to take advantage of people by offering fake initial coin offerings or posing as government officials demanding cryptocurrency payments.

By staying informed and cautious, you can avoid most of these scams.

Cryptocurrencies Aren’t Real Money

Cryptocurrencies may not look like traditional money, but they function in many of the same ways. You can use them to buy goods and services, and they’re recognized as a store of value. Governments even tax crypto transactions, and gains or losses must be reported.

Though you can’t hold cryptocurrencies in your hand, many vendors accept them, and you can easily exchange them for traditional currencies at various exchanges.

Cryptocurrencies Will Replace Fiat Currency

While cryptocurrencies are growing in popularity, replacing fiat currencies entirely seems unlikely, at least in the near future. For this to happen, people would have to adopt crypto on a massive scale, and governments would need to figure out how to adjust their systems for collecting taxes and managing social programs.

Cryptocurrencies are decentralized, which makes it difficult to use traditional monetary policies to control inflation or stimulate economic growth. Even if crypto does become more widely adopted, it would take a long time to replace the traditional monetary systems we’ve relied on for centuries.

Cryptocurrencies Are a Fad

Like the early days of the internet, cryptocurrencies may seem niche, but they’ve already made a significant impact. Applications like decentralized finance are drawing attention from businesses and consumers alike, and many governments are exploring how they can implement crypto in more structured ways.

The underlying blockchain technology is still evolving and inspiring new developments, so it’s hard to call it a fad. In fact, cryptocurrencies are likely to be around for quite some time.