Michaela
Let’s be real: the crypto world is full of noise—and a lot of it comes from old, tired crypto myths that just won’t die. You’ve probably heard them: “It’s only for criminals,” “Bitcoin is dead,” or the classic, “NFTs are just overpriced JPEGs.” These myths spread fast, stick hard, and confuse the hell out of anyone trying to dip their toes into Web3 for the first time.
That’s why we’re here. If you’re new to crypto (or even if you’ve been around the blockchain a few times), busting these myths isn’t just helpful—it’s necessary. This listicle is your no-fluff, mildly snarky guide to separating fact from fiction, minus the tech-bro jargon. Let’s torch the nonsense and set the record straight.
1. “Crypto Is Only Used by Criminals”
Ah yes, the classic “crypto = crime” myth—one of the oldest crypto myths still haunting group chats and dinner tables everywhere. It got its big break in the early 2010s, when Bitcoin was the unofficial currency of the Silk Road (no, not the ancient trade route—this was the shady online marketplace where you could buy anything from fake passports to questionable brownies).
But here’s the thing: just because criminals used crypto doesn’t mean it’s only for criminals. That’s like saying cash is evil because someone once robbed a bank with it. In fact, according to a 2024 report from Chainalysis, less than 0.34% of all crypto transactions are linked to illicit activity. Compare that to the trillions laundered globally through banks every year—yeah, crypto’s not the bad guy here.
Most people use crypto for perfectly legal things: sending money overseas, investing, collecting NFTs, or staking tokens for passive income. So unless you think Venmo is a front for a cartel, it’s time to let this myth go.
2. “Bitcoin Has No Real-World Use”
This one’s a fan favorite among skeptics and financial “experts” who think Bitcoin is just glorified internet points for risk-happy traders. The myth? That Bitcoin does nothing except sit in a wallet and go up (or down) in price. But like many crypto myths, this one crumbles the moment you look past the headlines.
Where the Myth Came From
Media outlets often focus on Bitcoin’s price swings. It makes great drama: one week it’s “digital gold,” the next it’s “worthless.” That narrative ignores what Bitcoin was actually built for: permissionless, borderless, peer-to-peer money.
Real Ways Bitcoin Is Used Today
Far from useless, Bitcoin is already being used around the world in ways that matter:
- Remittances: Sending money across borders—faster and cheaper than banks or Western Union.
- Inflation hedge: In places like Venezuela, Lebanon, and Argentina, Bitcoin helps people escape rapidly devaluing local currencies.
- Store of value: Many people use BTC like digital gold—especially where access to traditional banking is limited.
Lightning Network: Making Bitcoin Fast (and Cheap)
Bitcoin isn’t stuck in 2013 anymore. The Lightning Network is a layer on top of Bitcoin that lets people send BTC instantly with tiny fees—think cents, not $30 gas fees.
- In El Salvador, where Bitcoin is legal tender, you can buy coffee, pay tuition, or donate to schools using Lightning.
- Apps like Strike and Wallet of Satoshi make Bitcoin payments as easy as Venmo.
Bottom Line
Just because you don’t use Bitcoin to buy tacos doesn’t mean nobody does. This myth is mostly a case of “out of sight, out of mind.” For millions of people living under financial pressure, Bitcoin is more than an asset—it’s a tool for survival.
So yeah… it’s way more than just something you panic sell during a dip.
3. “Blockchain = Bitcoin”
Time to clear up one of the most common crypto myths that refuses to log off: the idea that blockchain and Bitcoin are the same thing. Spoiler: they’re not. That’s like saying “the internet = email.” Sure, email runs on the internet—but the internet is so much more than that. Same deal here.
What Is Blockchain, Really?
At its core, a blockchain is just a fancy, tamper-proof digital ledger. Think of it like a shared Google Sheet that anyone can view, no one can edit without permission, and every change gets time-stamped and recorded forever.
Bitcoin was the first major use of this tech. It uses blockchain to track who owns what BTC, when it was sent, and where it went—without needing a bank.
Blockchain’s Greatest Hits (Beyond Bitcoin)
Once developers realized how powerful this “public record that no one can mess with” really was, they started building all kinds of new stuff on it. Some highlights:
- Ethereum — The go-to platform for smart contracts, DeFi apps, and NFTs.
- Solana — High-speed, low-fee blockchain powering games, marketplaces, and microtransactions.
- Polygon — A layer-2 network that helps scale Ethereum and make transactions cheaper.
And it’s not just about money:
- NFTs: Verifiable ownership of digital art, music, tickets, or even in-game swords.
- DeFi (Decentralized Finance): Loans, savings, and trading—all without a bank.
- Supply Chain: Track your avocado from farm to toast.
- Digital Identity: Own your data. Log in without passwords. Take control of your online life.
TL;DR
Saying “blockchain = Bitcoin” is like saying “electricity = lightbulbs.” Yes, Bitcoin uses blockchain. But blockchain powers way more than just digital currency—and its best uses might not even exist yet.
So next time someone drops that line, feel free to hit them with a friendly: “Actually…”
4. “Crypto Is Too Volatile to Ever Be Useful”
Let’s be honest: watching your crypto portfolio swing 20% in a day can feel like emotional CrossFit. But here’s the deal—volatility doesn’t make crypto useless. It just means it’s new, growing, and yes, sometimes wild. This is one of those crypto myths that confuses early-stage chaos with long-term failure. Spoiler: they’re not the same thing.
A Little Volatility Is Normal (and Necessary)
Every groundbreaking tech goes through a “hold onto your butt” phase. In the late ’90s, Amazon’s stock dropped over 90% before becoming a trillion-dollar beast. The early internet? Full of dot-com crashes and dial-up screeches.
Crypto’s volatility is what you get when a brand-new global financial system is still figuring itself out—while the whole world watches.
But People Still Use It — Here’s Why
Despite the rollercoaster charts, crypto is still being used daily around the world:
- Remittances: Even if the price moves, it’s still faster and cheaper than traditional options.
- Long-term store of value: Many see Bitcoin like digital gold—something to hold, not trade.
- Access to financial tools: For the unbanked or underbanked, DeFi can be a lifesaver.
Meet Stablecoins: The Chill Cousins of Crypto
If price swings freak you out, stablecoins like USDC and DAI are here to keep things calm. They’re designed to stay pegged to the U.S. dollar (or another stable asset), so you can still use crypto without needing to pop Dramamine.
Use cases include:
- Paying salaries in volatile economies
- Storing value in countries with hyperinflation
- Earning yield in DeFi without riding the BTC rollercoaster
The Bigger Picture
Yes, crypto is volatile. So were cars, planes, and the stock market when they were new. That didn’t stop them from changing the world.
So next time someone drops this myth, just nod politely and whisper: “Early tech wobbles are just growing pains, my friend.”
5. “NFTs Are Just Overpriced JPEGs”
Ah yes, the internet’s favorite crypto myth. At this point, “overpriced JPEG” has basically become a meme—but like most memes, it only tells part of the story (and leaves out the good stuff).
The Myth: You Right-Click, You Win
The myth goes something like this: “Why pay for an NFT when I can just screenshot it?” And sure, you can save the image, but that’s like taking a selfie in front of the Mona Lisa and claiming you own it. Cute, but no.
The Reality: NFTs Are All About Ownership and Utility
NFTs (non-fungible tokens) aren’t just about pretty pictures—they’re about provenance, ownership, and programmable value. Think of them as digital deeds. Sure, some are art—but others are much more than that.
Here’s what NFTs are actually being used for:
- Digital art – Verified ownership, artist royalties, and authenticity (not fakes).
- Gaming assets – Own your in-game sword, car, or skin and use it across games.
- Event tickets – NFTs that prove you were actually at that concert or IRL event.
- Membership passes – Gated communities, content, and perks, like having a VIP card to a digital club.
- Identity – Portable, verifiable credentials without giving up your private info.
NFTs = Utility + Authenticity
At the heart of NFTs are two things:
- Utility: What can the token do for you? Access? Trade? Income?
- Authenticity: Is it real, verifiable, and owned by you? The blockchain doesn’t lie.
Whether it’s getting exclusive drops from your favorite band, accessing token-gated Discords, or proving you bought the first edition of a digital comic—NFTs are receipts, keys, and flexes all in one.
TL;DR
Yes, some NFTs are overpriced. So are some sneakers, watches, and sports cards. That doesn’t mean the tech behind them is a joke. The “just a JPEG” take is one of those crypto myths that sounds smart until you look under the hood.
So go ahead, right-click all you want—but that screenshot won’t unlock a VIP event or earn you royalties.
6. “Crypto Is a Scam”
Here it comes—the granddaddy of all crypto myths. You’ve probably heard someone say it (or thought it yourself): “Crypto is just one big scam.” Between flashy influencers promising moonshots, rug pulls disappearing overnight, and enough Ponzi schemes to make your head spin, it’s easy to see why.
Where This Myth Comes From
Let’s be real—there are scams in crypto. Some projects vanish with your money, some influencers hype tokens without a clue, and some deals sound so good they probably shouldn’t be legal. These shady moves get headlines and make headlines stick.
But Here’s the Nuance: Crypto Isn’t the Scam—Some People Are
Crypto is a technology, like the internet or email. It’s a tool. And just like those tools, bad actors can abuse it. That doesn’t mean the whole system is broken.
Remember the early internet days? There were scams, viruses, and phishing emails—did that make the entire internet a hoax? Nope. It meant users needed to be careful and learn how to spot trouble.
Do Your Own Research (DYOR) Is Your Best Defense
If you’re thinking about diving into crypto, here’s the golden rule to keep scams at bay: DYOR. That means Don’t just take someone’s word for it—read whitepapers, check the team’s background, search for community feedback, and be skeptical of promises that sound too good to be true.
- Is the project transparent?
- Are the founders public and reputable?
- Does it have a working product, or just hype?
As you learn more, you’ll start spotting the red flags and keep your money safer.
Bottom Line
Yes, scams happen. But calling crypto a scam is like calling the entire internet a scam because of spam emails. The technology is real, revolutionary, and here to stay. Just keep your eyes open, trust but verify, and remember—not every shiny coin is gold.
Last Word: Stay Smart, Stay Curious
Alright, we’ve busted some of the biggest crypto myths floating around, but let’s keep it real: crypto isn’t perfect. It’s new, sometimes messy, and yeah, the headlines can be wild. But letting these myths scare you off? That’s the real missed opportunity.
The truth is, understanding crypto means peeling back layers of hype, noise, and misinformation. So stay curious. Ask questions. And definitely don’t believe everything you see on TikTok or in random DMs promising you a “guaranteed 10x.”
Remember, the only way to win against crypto myths is to stay informed—and maybe have a little fun along the way.
Read More
- Lazarus Group Linked to Crypto Laundering via Garden Finance, Says ZachXBT
- Bitcoin Reserve Established as Texas Becomes First State to Invest Public Funds
- The Origin of NFTs: How Crypto Culture Created a New Art Movement
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
