Myths and facts about Bitcoins: What do you need to know?

We all are aware that bitcoin offers one of the hottest investment opportunities for us today. But, there are lots of myths that surround bitcoin. If you want to invest in bitcoins, it is important to debunk a few myths about bitcoins. Few people have formed wrong notions about bitcoins. Thus, we are here to debunk myths about bitcoin.

Bitcoin offers absolute anonymity.

While there is an element associated with bitcoin, the truth is that it does not come up with absolute anonymity. As a bitcoin user, when you engage in a payment or a transaction. It will leave a pattern in the blockchain. In addition to this, when you try to get services from a bitcoin exchange, you may need to share personal details. Thus, the point that bitcoin offers absolute anonymity is a myth.

Bitcoins may be used as a credit card in the future.

This is another myth that most people have about bitcoin. But, this is just a lie because bitcoin transactions can’t be processed as quickly as credit card transactions. In addition to this, there is a huge cost and fee that goes into each bitcoin transaction. Thus, currently, there is no possibility that bitcoin will replace credit cards.

Bitcoin is a Ponzi scheme.

Most people don’t dare to invest in bitcoin because they have a myth that bitcoin is just another Ponzi scheme. But, there is absolutely zero truth in this statement. Bitcoin is not operated by any agency or organization. Thus, no one takes part in the management and regulation of bitcoins. It can be produced by anyone who is a part of the blockchain system. If you are planning to invest in bitcoins, you can be at peace of mind that it is not a Ponzi scheme.

Bitcoin is too expensive.

Most people opine that bitcoin investments are not good for common people. People think that bitcoin investment is too expensive. But, this is just another myth associated with bitcoins. A single bitcoin may cost almost $6000. But, If you feel it is too expensive, you can try to buy a fraction of bitcoin at a cheaper cost. The smallest unit of bitcoin is called a Satoshi. You are free to even invest in a Satoshi. Thus, the next time someone stops you from investing in bitcoin, ask them about investing in one satoshi.

Bitcoin is a volatile currency.

No doubt bitcoins showed volatility for some time in 2009, but since then, it has remained quite stable. The price trend of bitcoin increased until the third quarter of 2017, and then it inclined abruptly. Since then, it has witnessed a downward trend in the price of bitcoin. Thus, the opinion that bitcoin is a highly volatile currency is not 100% true.

Bitcoin leads to illegal activities.

Many countries around the world have not yet accepted bitcoin as a method of payment as they feel that bitcoin is used for different illegal activities. People have this opinion about bitcoin as they worry about the anonymity associated with bitcoins. But, the reality is that these activities can also be done by fiat currencies. Thus, it is not true that bitcoin will be used only for illegal activities.

Can lead to theft and fraud

People who deal in bitcoins also have the fear that they will be duped when they plan an investment in bitcoins. The main cause of their fear can be the vulnerabilities related to private information. This is just a myth because bitcoin offers more security in payment as compared to fiat currency. The use of an intricate blockchain system makes it quite impossible for a conman to get access to your personal data.

Consumes too much energy

This is one of the most known myths associated with bitcoins. The amount of energy that bitcoin consumes is quite less as compared to what different financial agencies use every year. Thus, bitcoin uses only a fraction of the energy that is consumed by different financial institutions all around the world.

Payment using bitcoin is difficult.

This statement is absolutely wrong. Bitcoin as a payment option is used by many businesses. These days many online stores are including bitcoin as one of the major payment methods. To help people, these days, many counties are also installing bitcoin ATMs.

We hope this article will help you in getting rid of myths associated with bitcoins. Let us know if you want to know more. You can check the platform how bitcoin can help benefit  the poor developing countries to get detailed information about bitcoin.