There are many myths and misconceptions about Bitcoin. The most common myths about Bitcoin we decided to consider in the framework of this article.
- Bitcoin is the currency of criminals. In fact, criminals are not a local supermarket – these guys accept a variety of currencies. Or do you think that before the advent of bitcoin they took money from the air? One of the reasons why many criminals do not use cryptocurrencies is that it is more difficult to buy and spend them than fiat currencies. However, it has long been used for quite legitimate purposes.
- Bitcoin is a bubble. Yes, bitcoin is not constant in its growth and has a tendency to change its value. However, history does not yet know of any assets that would grow exclusively in a straight line.
- Bitcoins are tulips. At one time, in Holland, there was a so-called tulipomania, when for one bulb people were ready to give a lot of money. However, unlike flowers, bitcoins can not be destroyed and they are much smaller.
- Owners of Bitcoin can create as many coins as they wish. No they can’t. Bitcoin is open-source software, and it doesn’t matter who invented it. Because nobody can control it. Also it is limited, maximum supply is 21 millions.
- Bitcoin is a financial pyramid. A brief educational program: the financial pyramid is based on early investors who earn late, until the pyramid loses its stability. The cost of bitcoins depends exclusively on the growth of demand and supply.
- Bitcoin is easy to crack. An exchange or a cloud wallet can be hacked. But not blockchain, which was tested a thousand times for endurance code.
- Bitcoin is unnecessary fun. Funny, but before, people also thought that Internet and mobile phones are unnecessary.
- Bitcoin wastes energy. Yes, bitcoin minings undoubtedly consume electricity, but do you know what’s funny? Minings spend one-third less energy than Christmas garlands in USA.