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Cryptocurrency and blockchain is currently a trendy topic but, as it often happens, it’s not always for positive reasons. Whether you support it or oppose cryptocurrency, you might have noticed there are numerous rumours and Bitcoin myths marketed all for the wrong reasons.
Bitcoin has been around for almost a decade, yet myths about the king of cryptocurrencies continue to circulate among newcomers and veterans alike. Nonetheless, debunking these fallacies is the best way forward because any truly decentralised and censorship-resistant technology is destined to encounter such challenges.
If you are a beginner who is just getting started with bitcoin trading, you should learn how to tell the true and false information about crypto apart. This blog will debunk some of the most frequent Bitcoin myths and explain why you should really disregard them.
It can be difficult to grasp the concept of Bitcoin because it encompasses numerous disciplines like computer science, arithmetic, encryption, economics, psychology, and, on occasion, philosophy. But taking the time to learn about BTC and cryptocurrencies in general is worth it.
As Bitcoin Up explains, “Bitcoin technology will be mainstream soon”. Blockchains and cryptocurrencies are here to stay, so getting to know them now will ensure your adaptability in the long term.
In this article, we’re taking a slightly unusual approach. Instead of simply giving you the basics, we’ll look at the different Bitcoin myths spreading about and try to debunk them. Let’s get started!
1. Bitcoin is a Digital Currency with no Monetary Value
This is one of the most common Bitcoin Myths. While 1 BTC may not be worth as much as it once was, or even half as much as it was only a few months ago, this does not rule out the possibility of Bitcoin’s future value, or negate the fact that a single bitcoin is currently worth thousands of US dollars.
Bitcoins, in fact, have a wide range of applications. They can be used to purchase products and services from retailers who accept them, traded for other currencies, and even saved as a form of investment.
As a result, as long as people accept bitcoin, it will always have some intrinsic worth. This may take some time because many countries worldwide are still figuring out how to incorporate digital currencies into their legal frameworks – but it’s not like Bitcoin is worthless.
2. Bitcoin’s Volatility is Minimal to Non-existent
Another popular Bitcoin myth hovering over is that Bitcoin isn’t prone to major volatility, which is far from the case. While it has less day-to-day volatility than gold, there is still a lot of speculation on future pricing, resulting in huge price swings.
It might be worth $20,000 per BTC one day, then $30,000 the next – only time will tell how high or low the Bitcoin price will go before stabilising.
3. Bitcoin is easily Hacked or Stolen
While there are several instances of people losing their Bitcoins in various ways – including robbery, phone loss, computer loss, and even sending BTC to the wrong wallet address – Bitcoin is, in actuality, a fairly safe system.
Fraud is not impossible, as with all things digital, but the Bitcoin blockchain network is highly secure and if you’re careful about where you keep your wallet identifying data, you are not likely to experience security problems.
4. Bitcoin’s value is Diminishing
Bitcoin has always had its detractors, and for a long time, it appeared that they would be proven correct. The currency struggled to acquire any traction against the dollar, was battered by the failure of several high-profile exchanges, and was plagued by sluggish speeds that made transactions excruciatingly slow. Thus, explaining the birth of this Bitcoin myth.
However, things are completely different today. Bitcoin is frequently referred to as cryptocurrency’s reserve currency. Despite the difficult global economic conditions, which have caused a slump in many different types of assets, including the stocks of popular and successful companies like Amazon, Bitcoin prices have remained stable for most instances.
To understand the increasing hype and importance of Bitcoin, in a show called What is Money? Clinical psychologist Jordan Peterson said that the ability to save up is an essential tool for self-regulation and planning for the future. He further concluded with a strong statement claiming that Bitcoin is the hope of the Future.
5. Bitcoin is only used to fund Illegal Activities
BTC was initially utilised for criminal operations, with a focus on transactions on the Silk Road (marketplace) due to its higher privacy compared to traditional forms of payment. Hence, justifying the airing of this bitcoin myth. But, with the passage of time technology has taken a new turn and so has Bitcoin.
However, just as some people used Bitcoin for illegal things, others are using it for good. For example, WikiLeaks, the world’s most renowned whistleblower, used Bitcoin after all banks ceased funding them.
Also Read: Censored NFT collection: WikiLeaks and PAK join forces to save Julian Assange
Plus, it’s not like criminals don’t use fiat currency too — and that doesn’t make money bad. But when unlawful acts are carried out using fiat currency, somehow there isn’t much uproar about it. Moreover, no one claims that fiat national currencies are a hoax or a scam just because they are being used for illegitimate purposes sometimes.
6. Bitcoin is Expensive, and I can’t Manage to Buy an entire Coin
You’re doing it incorrectly if you’re investing in cryptocurrencies and don’t own bitcoins. That doesn’t mean you shouldn’t acquire other coins, but the narrative of cheap and expensive coins is ridiculous.
Many people believe that they must purchase an entire BTC; however, this is not true. With the wide selection of exchanges and crypto brokers today, it’s possible to break down your investment and purchase just a fraction of an asset.
So, if you don’t have the funds to buy a whole bitcoin, you can buy a tenth of it, or even much less. So you see, such Bitcoin myths are just nonsense and utterly false!!
There are also formal sub-units of BTC known as Satoshi, and you can buy a lot of them for $100-$200.
Buying a small amount of Bitcoin is still better than buying a large number of worthless altcoins. Maintain 50-60% of your money in BTC and keep it safe in crypto wallets like the Ledger Nano S. Don’t fall for cheap coins because many of them may not see another day.
7. Bitcoin is a Money-laundering Scheme
Bitcoin is not a money-laundering scheme.
At its core, money laundering is always the same process, it’s about converting illegally obtained money into money that appears to have been legally obtained.
Bitcoin is one of the worst options to use in a money laundering scheme as every transaction on Bitcoin blockchain gets recorded on an immutable ledger. Then using the transaction hash one can simply track down the BTC back to its origin(mined).
Hence, using Bitcoin to launder money will leave a straight up trail back to the launderer.
Final Thoughts
Numerous Bitcoin myths regarding Bitcoin and fallacies about other cryptocurrencies have led people to believe it isn’t safe to use or invest in, which is far from the case. These myths are frequently repeated because they appear to make sense on the surface – but when you think about them objectively, you’ll see them for what they really are: baseless rumours.
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