As part of its interaction with the #CryptoPH Community, BitPinas asked: What are the most common misconceptions about crypto that you encounter?
What are these misconceptions that the #CryptoPH Community answered? Is there a majority answer?
Crypto is a Scam
In a June report by ConsenSys, 53% of the Filipinos said that the main reason Filipinos do not try to explore the crypto ecosystem is because of having too many scams in the space.
This seems to reflect on the comment section, as most of the #CryptoPH Community answered that the most obvious misconception about the crypto industry is that it in itself is a scam.
“Dati sa’min, (marami ang) nagsabi na scam daw ang crypto. At kasama ako sa (mga) naimpluwensyahan dahil ‘di ko pa alam (kung ano ang) crypto. Dahil poor mindset pa ako noon, naniniwala ako sa mga sabi-sabi. Pero now, medyo may alam na,” stressed Arvy James Sitjar.
[“Before, in our place, a lot of them believed that crypto is a scam. And I was one of those who also believed that lie because I know less about crypto that time. But now, I already gained knowledge.”]
“Sa mga walang alam, it’s a scam. Sasabihin nila sayo, ‘Huwag mag-invest dahil scam yan,’” Bing Als echoed.
[“For those who know nothing, it is a scam. They will tell you to not invest in crypto because it is a scam.”]
“Scam, sabi ng mga ignorante; scam, sabi ng banks. Pag nag-Bitcoin ka, scammer ka. Few years later, banks are adopting blockchain technology,” sharer Herbert Enciso explained.
[“Ignorants say it is a scam. Banks say it is a scam. That when you buy and promote Bitcoin, you are a scammer. A few years later, banks are now adopting blockchain technology.”]
Meanwhile, another sharer, Matteo Harris, expressed his disappointment over traditional finance who did not believe in the power of decentralization before, but is now enjoying the advantages brought by the blockchain technology:
“‘Di mo alam iyong opportunity na hinahanap mo, nasa harap mo na pala, tapos ni-reject mo pa. Bottomline, banks are now utilizing blockchain technology to enhance the security and efficiency of their financial transactions. Dati ayaw nila kasi scam daw.”
[“You do not know the opportunities in front of you, that you rejected it. The bottomline, banks are now utilizing blockchain technology to enhance the security and efficiency of their financial transactions. Before, they did not want the technology because it was allegedly a scam.”]
It can be recalled that form Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla expressed that he is not keen on regulating crypto and dismissed it as based on the “greater fool theory.” The Greater Fool theory notes that a person can make money buying overpriced items if there is a “greater fool” who wants to purchase them at an even higher price.
But just last month, the BSP confirmed that it had selected Hyperledger Fabric as the Distributed Ledger Technology (DLT) for its wholesale Central Bank Digital Currency (CBDC) pilot, dubbed as Project Agila. Formerly known as Project CBDCPh, the idea of having the country’s own CBDC project started even before Medalla became the governor.
Also, though Senator Sherwin Gatchalian called crypto “just a glorified casino,” the Philippine Senate has tapped blockchain firm Twala to digitalize the Upper House’s internal processes to save on personnel time and cost to the public.
Crypto is a Quick-to-Get Scheme
Due to the market’s volatility, more people think that investing in crypto will make them richer and earn higher yields compared to other investment instruments.
“You can be a millionaire really quick,” commented Michael Ramos.
“Quick rich mentality, my 2016 thinking,” Facebook user Jj Malinao Go seconded.
“Autorich: ₱100 to ₱1 million in just two days,” Alex Lindayao Jr. joked.
Writer’s Opinion: Maybe one of the factors that led some Filipinos to believe that investing and trading in crypto will make someone rich quickly is because they were onboarded during the bull market, where everything is going to the moon. And because they lacked information about the industry, they thought that the market was always going upward, not realizing that there could also be bad days.
Crypto is Used for Money Laundering
Another thing that the community commented on is that cryptocurrencies, since they are not yet fully regulated around the globe, are used for money laundering.
“Illegal ginagamit pang-transaction ng drugs,” Ezen Ledesma answered.
[Illegaly used to pay drug transactions.”]
“Used for laundering,” Archie Go highlighted.
During the BitPinas Webcast with PDAX CEO Nichel Gaba, he explained that “just to be very clear, holding, buying, (and) selling crypto is not illegal. Trading crypto is not money laundering.”
Gaba also challenged the alibis of most banks that crypto transactions are not allowed, emphasizing that there is nothing wrong with trading crypto.
This article is published on BitPinas: BitPinas Asks: What Are The Common Misconceptions About Crypto?
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