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Bitcoin Myths That Some People (Still) Believe

Bitcoin Myths That Some People (Still) Believe

Bitcoin has become very popular over time and a lot of people have invested their money in it. Despite a lot of information available on Bitcoin, there are still quite a few myths being circulated against Bitcoin today. In this post, we will dispel some of the most popular ones. Let’s get started.

Ridiculous Bitcoin Myths

Bitcoin is a bubble

One of the most heard myths about Bitcoin is the myth of “Bitcoin is a bubble“. In fact, the reason for the emergence of this myth justifies those who say that it is a “balloon”, albeit a little. Because it can be used as a speculative investment tool, large investors can significantly increase its value. However, this fact is not reason enough to prove that Bitcoin (BTC) is a bubble. What’s the truth though?

  • Bitcoin (BTC) has been in the economy since 2009. Of course, the fact that there is new popularity can greatly hinder the stabilization of its price. In 2010, different cycles occurred, such as paying 10 thousand BTC for a pizza, then BTC rising to $ 7,000, then withdrawing from this peak to $ 1,000 again. However, at the last point, Bitcoin did not easily let go of the peaks it caught after 2017 and has managed to reach $ 60,000 levels to date. The same is true for Amazon shares. At the end of the ’90s, Amazon’s stock values ​​were as high as $100, but then a correction came and Amazon’s share price dropped to as low as $5. But after all, Amazon’s share value today is astonishingly high.
  • According to some analysts, Bitcoin will reach its true value in the next few years. In other words, although it is currently trading at the level of 60 thousand dollars, this value may be higher or lower in the coming years, but there is also the idea that it will of course catch its real value. Only time will tell how long this will happen. You can start trading on platforms like 1k daily profit.

Bitcoin has no place in the real world

  • If Bitcoin really didn’t have a place in the real world, today’s big and luxury companies wouldn’t use Bitcoin to protect and secure their assets. Today, big companies such as Tesla, Square, MicroStrategy invest billions of dollars in Bitcoin, which is said to have no place in the real world, in order to protect their assets.
  • Gold is limited in the world, so is Bitcoin and it is certain that Bitcoin (BTC) has more advantages over gold. It is known that it is called “digital gold” because it reaches very high values. However, while Bitcoin is money that you can easily transfer like sending an email to a friend, the same cannot be said for gold.
  • The negative news about Bitcoin was usually caused by the use of some companies or personal users in dark jobs in the early periods. This caused a loss of confidence in Bitcoin. But as time progressed, Bitcoin continued to gain value, and this news could not go beyond being a bubble.
  • One of the biggest myths made up about Bitcoin was the myth that its use in illegal works will increase. However, according to the statement made by the critics with the data, only 2.1 percent of Bitcoin could be used in illegal business. Compared to the US dollar, this rate is barely a beat.
  • Claims like Bitcoin is a bubble that cannot be followed because it is a digital currency and is ready to burst at any moment do not go beyond the myth. Yes, every transaction made in the Blockchain system is recorded, although it is not open to third-party interference.

Bitcoin has no real value

After Bitcoin entered our lives, distrust towards crypto money continued for a while. Because the critics occupied the agenda with many fake stories, perhaps even though they did not have a clear idea about Bitcoin. One of them was about Bitcoin’s lack of real value. Actually, looking at the truth of the matter, Bitcoin has value. Because it is produced in limited numbers, it is seen that it has a more realistic value than the US dollar or all other physical currencies in the face of inflation, war and economic losses. So, what is the true story of this legend?

  • Bitcoin will only be produced in 21 million units throughout its entire history. In other words, no production will be made above this figure. But the US dollar, euro or gold is not like that. There is no limit to these commodities that are in the hands of the states. Although there is a limit under it, its clear limit is not clear.
  • It reduces not only the total supply of Bitcoin but also the number of new Bitcoins being mined. It also halves the rewards given to miners on the network with the fork (halving) that happens every four years.
  • Mining farms and networks can be cited as evidence against those who argue that Bitcoin has no real value. Because there are individual ASIC devices or mining farms installed in different parts of the world for mining, which is getting more and more difficult with each passing day. When you take into account the value of an ASIC device today, it can be understood more clearly whether it has real value.

Bitcoin will be replaced by another competitor

Almost the same legends are made up for every altcoin released after Bitcoin. “XRP will replace Bitcoin”, “ Ethereum will dethrone Bitcoin in the future” etc. All this was nothing more than a legend. Because since 2009, there has been no altcoin that has taken the place of Bitcoin by providing a permanent superiority. So, what is the truth of this legend?

  • Although thousands of new cryptocurrencies have entered the market in the last 10 years alone, none of them have surpassed Bitcoin in terms of volume or price.
  • Bitcoin continues to make up only 60 percent of the cryptocurrency market.
  • Bitcoin is a decentralized and mining cryptocurrency that works over the Blockchain network. Although other traditional altcoins are also produced with the mining system, there is no other cryptocurrency that is mined as much as BTC mining.
  • Bitcoin can make new strategic method decisions against an error that may occur and repair these errors by making a new fork.
  • Despite all this, a new cryptocurrency that can rival Bitcoin can still be considered. But at present, it is not possible to talk about another altcoin that can rival BTC, at least for now.

Investing in Bitcoin is a gamble

The value that Bitcoin has captured in the last 10 years has brought about the emergence of some critics’ statements about Bitcoin as “gambling”. However, how accurate can it be to expect the huge companies we mentioned above to invest in a gambling tool? It is neither reasonable nor logical for luxury companies such as Tesla and Hedge to invest in a gambling vehicle. So, what is the truth of the legend?

  • There should be no logical justification for Bitcoin to increase in value like a gambling tool. Gambling is pure luck. The lucky one wins, but there are many factors in the rise of Bitcoin, such as supply-demand balance, economic news and investment by companies.
  • In order to avoid the volatility effect, you need to invest in other investment instruments within a certain period of time. The same is true for Bitcoin. Investments made by large investment companies and financial institutions are of course effective in increasing the price of Bitcoin. So this is another piece of evidence that disproves the myth that “Investing in Bitcoin is gambling”.
  • If investing in Bitcoin is a gamble, why did big firms continue to invest after it went into a downtrend in 2017? Not for a profitable business, even large companies and individual investors did not want to move their hands, while Bitcoin experienced the peak rise of all time by 2021, having a price above the level of 60 thousand dollars.

Investing in Bitcoin isn’t safe

Claims that Bitcoin is not safe are nothing more than a myth. Because the fact that it works on an open source system affects the security of Bitcoin against possible attacks. The result of the analysis of many experts shows that there has been no attack on Bitcoin to date. So, what is the truth of the legend?

  • There has not been a single attack against Bitcoin itself to date. There have only been attacks on third parties. In other words, attacks were carried out on cryptocurrency exchanges, cold wallets or personal computers. This is not enough to prove that Bitcoin is insecure.
  • Bitcoin’s basic protocol became operational in 2009 and has been operating with 99.9% uptime since then.
  • Bitcoin is a decentralized digital currency that is mined in different parts of the world. Therefore, even if an attack is intended, the fact that each of the validators is in a different place is a reason to cover up the attacks.  

Bitcoin harms the environment

It is true that a strong energy structure is required for Bitcoin mining. However, when this ratio is compared with the energy needed for the operation of companies in the world, it can be seen that others are not so innocent. Banks, factories, bank ATMs and every other conceivable area needs environmental energy in some way. So, what is the truth of this legend?

  • According to the statement published by New York-based fund Ark Investment Management, it is concluded that Bitcoin consumes less energy than traditional banking and gold mining on a global scale.
  • Some of the energy used in Bitcoin mining can be obtained from renewable energy. The energy needed for mining can also be obtained by using wind energy, water and solar energy.
  • While sustainable energy can be used to mine Bitcoin, it is much more difficult to do so for other traditional tools left in the world.

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