Biggest Bitcoin Myths
Separating facts from fiction
Myth #1: Bitcoin is a bubble
Bubbles are economic cycles within unsustainable rises in market value, most bubbles crash and never recover. Although some people buy Bitcoin as a speculative investment seeking huge returns, that does not mean Bitcoin is a bubble.
However with all new technologies, boom and burst cycles are expected. Hence over a period of 12 years Bitcoin has gone through multiple price cycles.
Myth #2: Bitcoin has no real world use
Critics claim that Bitcoin is useful only for illicit activity and does not have real-world use. However bitcoin has history of making payments anywhere in worls without aa middle payment processor or bank. It is used by many institutional investors to hedge against inflation leading to the nickname “digital gold”. Moreover all transactions happen on the blockchain which makes it easier for authorities to track illicit activity.
Myth #3: Bitcoin does not have value
This myth is mainly due to the lack of backing with physical assets such as gold. However Bitcoin is hard-coded to be scarce with a total supply of 21 million, making it resistant to inflation and driving increase in value.
Myth #4: Bitcoin will just be replaced by a competitor
Huge amount of innovations are taking place thus bigger rivals can emerge, however none is close to Bitcoin. Bitcoin makes 60% of the crypto market.
Myth #5: Investing in Bitcoin is gambling
With Bitcoin the fundamental rationale for investors believe that it will rise whilst in a casino the odds are always in favor of the house.
Myth #6 Bitcoin isn’t secure
These misconceptions come from attacks on third-party businesses and services using Bitcoin not the network itself. The Bitcoin network has never been hacked and all Bitcoin transactions are irreversible.
Myth #7: Bitcoin is bad for the environment
Bitcoin mining is energy-intensive however determining the impact is hard. According to Cambridge Bitcoin Electricity Consumption Index approximately 20 to 70% of mining is powered by renewable energy(solar, hydro and wind). Plus miners constantly seek to increase profits by lowering their electricity cost.