Bitcoin has been around for a decade now, but still, it continues to be a mystery. Not many people are aware of the facts of Bitcoin. Few people understand what Bitcoin is and how does it work.
There are a lot of myths regarding Bitcoin. Also because ‘Bitcoin’ revolves around computer science, Maths, cryptography, economics, psychology is not everyone’s cup of tea!
Having so many Angles can blur the real fact hidden behind it because we as humans tend to derive conclusions earlier than needed.
So, let me help you understand some of the myths that you should do away with regarding Bitcoin!
Bitcoin is a scam!
People say that Bitcoin is a big scam and nothing else. They have just these baseless reasons behind this.
- Founder ‘Satoshi Nakamoto’ ran away.
- Satoshi owns 1 million Bitcoins.
- People lost money.
But people do not have the slightest idea about decentralization, free-market economics, or intrinsic value.
So, let’s get a little deep and explain these myths:
Yes, the founder of Bitcoin indeed left he intended to keep the project decentralized without the involvement of any human dependency or single point of failure.
And even if he owns 1 million Bitcoins! It is still better than central banks printing an unaccounted amount of fiat paper money.
And for sure, people will lose money if they are gambling or trading; BTC markets are just like stock-market and are subject to market risk!
Bitcoin is only used for Funding in illegal activities!
Yes, it is true that Bitcoin was first used for any illegal activities and was especially involved in transactions on Silk Road, a marketplace but there is nothing wrong with it.
It was later used by WikiLeaks, the famous whistleblower in the world when all banks stopped supporting them and that is how Bitcoin got into the mainstream market.
Bitcoin Mining wastes Energy
Ok, let’s clear the air here! Bitcoin mining does not lead to wastage of energy. Bitcoin gives you self-sovereign, money, immutability in exchange for so much energy the protocol consumes and if these are small things, perhaps you might have missed the whole point, why Bitcoin was created.
Also, avoiding login into of proof-of-work that consumes a lot of energy isn’t the most intelligent solution instead we should find out better, sustainable, greener ways to satisfy the need of the Bitcoin protocol.
Bitcoin is useless and supports High fees!
Bitcoin is so resilient, adaptable and powerful that it will survive any attack because of its self-governing and self-sustaining Maths and cryptography behind it. The difficulty might come down by then and some people might start mining it on their PCs again. And just because the fee of Bitcoin is high sometimes, that does not make it useless. Bitcoin is too costly, I cannot afford it!
If you are into cryptocurrency investments and don’t own Bitcoins, you are going very wrong, however, it doesn’t mean, you shouldn’t buy other coins but the narrative of cheap and costly coins simply seem stupid.
Many people think that they need to buy one whole BTC but that’s not true. Bitcoin is divisible 10^-8 so you can buy a lot of Bitcoin fractions with whatever money you have and whatever you can afford it.
So, I hope now that many of your assumptions and wrong information about Bitcoins would have been cleared! It is so much like the stock market and you need some strong market forecasting knowledge before you step into the Bitcoin Market. Bitcoin is an upcoming market trend and if used wisely, it can make you a millionaire.