Five Most Famous Bitcoin Myths
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When rebranding something as important money to society, some widely held misconceptions can arise. In this article, we will be looking at some of the misconceptions about Bitcoin (BTC).
Bitcoin Is Money for Criminals
It has been a long time since this myth was proved wrong, all thanks to data on how transparent crypto transactions are. The newest fact revealed is that only about 0.15% of the overall volume of crypto transactions is linked to criminal activities. Technically speaking, the background criminal activity is twenty times greater than that in the cryptocurrency sector.
Also, since BTC is an unrestricted form of money, it saves people from different forms of repression. Consequently, Bitcoin serves as a platform for prosperity and peace to thrive.
Bitcoin Is Untraceable
A lot of people have opined that Bitcoin is untraceable. Though people can indeed use their BTC wallet to send and receive bitcoin without disclosing private information, it is important to note that every wallet possesses a one-of-a-kind address that was given to it by the bitcoin network. It is then possible to trace the owner of a bitcoin wallet via the wallet address. This is possible because crypto exchanges, which act as an intermediary between the banking system and the cryptocurrency sector, usually collect users’ identity verification documents.
Also, since every BTC transaction is recorded in an open ledger, an address is linked to an individual, and the anonymity of such an individual is lost. Therefore, it is best to say that Bitcoin only has false anonymity.
Bitcoin is a Bubble
Frankly, Bitcoin has witnessed huge volatility, and many crashes of about 70%. However, when the timeline is expanded, one will observe that the value of BTC is gradually increasing, and this isn’t a characteristic of an economic bubble. Going by the design of Bitcoin, it is an anti-inflationary asset, as it possesses a set supply of twenty-one million. And at this point, over 90 percent of this cryptocurrency is already in circulation. Consequently, a moderate increase in its demand will affect its price.
This is the reason why investors see BTC as a nice investment tool as well as a means of storing value. Nevertheless, if one considers bitcoin as an investment, due to its volatility, one must do so over a sufficiently long timeframe.
Bitcoin can’t be Spent in Real life
In the past, traditional financial systems considered Bitcoin to be only internet money. However, over time, bitcoin as well as other cryptocurrencies have become a formidable economic force with a market cap worth hundreds of billions of dollars.
Cryptocurrency is generally becoming a valuable means of exchange. Nowadays, crypto can be used to purchase goods in numerous physical retail stores globally, as well as in e-commerce shops online.
Bitcoin is Controlled by Satoshi Nakamoto
During the infancy of Bitcoin, Satoshi Nakamoto was collaborating on the design of the Bitcoin software nevertheless, he left the project and wasn’t heard from any longer. Additionally, the control of the BTC protocol has never been in the hands of an individual, mainly because it is open-source software that can be run by any willing individual.
