Cryptos and blockchain technology are increasingly discussed and fascinating topics, however, for years, various urban legends related to these worlds have continued to circulate online.
In this article, we try to debunk the most well-known myths, exploring some of the common misconceptions and providing an explanation about them.
Let’s see everything in detail below.
The biggest urban legend about crypto: Bitcoin is a speculative bubble destined to burst
Obviously, the most famous urban legend in the crypto world concerns Bitcoin and the trend of its financial value.
Many among the non-experts indeed believe that Bitcoin is a speculative bubble ready to burst at any moment.
According to this theory, the price of the major currency in the market would be subject to strong manipulation, destined to collapse to zero.
There are even those who compare the history of Bitcoin with the tulip bubble of 1636, indicating the crypto as a passing fad with a short life.
This thesis is supported by the ideas that there is an extreme price volatility and a lack of intrinsic value to justify the current quotation.
In reality, however, Bitcoin has already demonstrated on several occasions to be a true financial investment asset, and not a temporary bubble.
Unlike the tulips of Harleem, here there is a much broader history that starts from 2009 up to the present day.
Several times the price of Bitcoin has dropped drastically, due to the strong speculative component, but it has never dropped to zero nor has it even come close to doing so.
As many now know, its trend falls within large market cycles lasting 4 years.
In each cycle Bitcoin reaches a new historical high, and a higher low than the previous one, highlighting a bull trajectory in the long term.
The logarithmic monthly chart speaks for itself.
Cryptos are used only for illegal activities
The second most well-known urban legend is based on the belief that crypto is used primarily for illicit activities.
At the dawn of the expansion of this technology, back in 2011, we could not counter this statement.
In fact, during the boom of the black market Silk Road, Bitcoin was heavily used as an exchange currency within the black circuit.
It is estimated that at least half of all existing BTC have passed through Silk Road, significantly contributing to its popularity in the world of the web.
As of today, however, things have changed significantly: the tightening of local and international regulations, as well as the evolution of tracking systems on blockchain, have contributed to making this sector much cleaner.
Improper uses of crypto are still seen, with criminal organizations employing them for illicit purposes, but we are talking about a very small percentage of all participations.
The majority of crypto exchanges, as well as all centralized cryptographic services, now require a KYC verification with users’ personal data, in order to discourage criminal use.
Things are no longer as simple as in 2011: large companies, government entities, and financial institutions are adopting cryptocurrencies for their transparency and security.
Cryptos are completely anonymous
Another urban legend that goes hand in hand with the previous one represents the misconception that cryptos are completely anonymous.
Many argue that cryptocurrencies are an asset capable of offering a high level of privacy, concealing the identity of those who use them.
Unfortunately, however, it is just a big misunderstanding: the blockchain technology is completely open and transparent, leaving everything that happens in the virtual world recorded in its ledgers.
Any person can consult the blockchain to find old transactions in crypto and trace, at least in part, their initial existence.
Cryptocurrencies like Bitcoin are indeed “pseudo anonymous“: this means that, although they are not linked to real identities, they can be traced and connected to people through in-depth investigations.
It is not a coincidence, in fact, that when major scandals occur in the crypto world, such as billion-dollar thefts or large-scale money laundering activities, the regulatory authorities almost always manage to identify those responsible with the help of the blockchain.
There are actually completely anonymous coins, like Monero and Zcash, but they are increasingly being excluded from the rest of the market due to possible negative implications.
Cryptocurrency mining consumes too much energy and is highly polluting
This is also an urban legend that is often talked about, often even on the news by people who are not very knowledgeable about it.
Many people argue that crypto mining, that is, the digital extraction activity through the use of computing power, is unsustainable in terms of energy.
Despite part of this common idea being true, considering that just the mining of Bitcoin requires a consumption of 87 TWh per year, there are factors that are never considered.
Firstly, many mining operations are adopting sources of renewable energy and more energy-efficient solutions.
This scenario will increasingly lead to an expansion, as the miners find an economic advantage (game theory) in using green sources.
Furthermore, emerging technologies like proof-of-stake, increasingly relevant, aim to reduce the environmental impact compared to traditional mining methods like proof-of-work.
Finally, we must point out that, even in the face of improvements and renewable energy sources, mining is an essential activity for this sector and not a waste.
Talking about waste, when energy resources are committed to reaching a distributed consensus within a global network where billions of dollars circulate, is inappropriate.
Bitcoin allows anyone to freely exchange money and participate in financial freedom, therefore it should be matched with the energy usage it deserves.
Cryptocurrencies have no intrinsic value and exist only for speculation
The latest urban legend we will discuss in this article concerns the idea that cryptos are devoid of intrinsic value and used only in the speculative field.
Many of the detractors of this sector repeatedly say that digital currencies have no real use outside of trading, and that their value is artificially inflated.
The truth is that cryptocurrencies derive their value from demand and supply, like any other currency or asset.
Furthermore, the underlying technology and practical applications of blockchain contribute to the value of cryptocurrencies.
If in the past the uses could be limiting, in 2025 we find a multitude of applications where crypto can find their application.
Just to mention some real uses: RWA, DeFi, stablecoin, gaming, digital art, decentralized identity, AI agents.
Obviously, speculation remains a fundamental factor for the existence of this industry, contributing significantly to the growth of mainstream interest.
Thanks to speculation, users usually discover the crypto world, only to end up falling in love with it by discovering an as-yet unexplored universe.
Finally, let’s remember that we are only at the beginning of a digital revolution that has yet to take over the everyday world, and soon new use cases will surely be implemented.
