Are you interested in becoming more involved in the cryptocurrency ecosystem? Are you planning on setting up your first Bitamp wallet?
Before you get started, check out some busted myths surrounding Bitcoin. Some of them may be the reasons why you haven’t been active with crypto until now.
Myth #1: Bitcoin Is Expensive
Yes, the price of one Bitcoin is expensive. Compared to other cryptocurrencies. However, this shouldn’t deter more people from getting involved and investing.
The reason? You can buy fractions of a Bitcoin on almost any crypto exchange. Bitcoin sells in fractional units called Satoshis. 100 million satoshis make up one Bitcoin.
Myth #2: Bitcoin Is Ruining the Environment
The driving force behind Bitcoin mining is electricity. The mining equipment needs tons of power in order for Bitcoins to be mined effectively and give a nice return.
Since this is the primary operating cost for mining operations, people often associate Bitcoin with something that’s bad for the environment.
In reality, things are different. Most mining operations take place in countries with very low electricity costs. Low costs often mean a surplus of electricity and many renewable energy resources.
Therefore, worldwide, Bitcoin mining doesn’t impact the environment as much as some people tend to believe.
Myth #3: Bitcoin Is Only Used for Money Laundering and Other Illegal Activities
This myth still surrounds the cryptocurrency. It all started with a grain of truth in the Silk Road illegal marketplace.
Although Bitcoin was used for the purchase of illegal goods and services, the cryptocurrency does much more than that these days.
Bitcoin is mostly used for investment purposes. It’s also accepted by trusted merchants and some people even sell their homes and cars in exchange for Bitcoin. Others donate Bitcoin to charities. It has more legitimate uses than many realise.
Myth #4: All Transactions Are Expensive
Bitcoin transactions are percentage based. What is true is that some transactions get processed much slower than others.
However, large transactions actually go through much faster than some people think. That’s one of the reasons why there are high fees involved. Large transactions get priority.
At least compared to wire transfers, Bitcoin transactions are nowhere near slow, or that expensive.
Myth #5: Bitcoin Is Worthless Because It’s Not Backed by Anything as Opposed to Traditional Currencies
This is a myth launched by people with a very poor understanding of decentralised financial systems and traditional banking systems.
The claim was that Bitcoin isn’t worth anything because it lacks backing. Therefore, it’s just a bubble. However, it’s tough to make this argument given that national currencies are rarely backed by anything. In fact, some are annually inflated to insane amounts.
Myth #6: Bitcoin Is Useless Due to Previous Hacks
Current Bitcoin holders and investors would beg to differ. The previous Coincheck and Mt.Gox hacks caused millions in loses. That much is true.
Yet Bitcoin only rose in value since then, including reaching an all-time high of around $20,000. Hardly signs of a dead cryptocurrency.
Myth #6: Bitcoin Lacks Scalability
Another unfounded myth.Its continuous proven value and security allows Bitcoin scaling. Multiple solutions can be built on top of the initial base layer, such as creating a new cryptocurrency. One that maintains the same level of security and decentralization. Or increasing the number of possible transactions per day.
Myth #7: Bitcoin Is Anonymous Therefore Dangerous
User anonymity isn’t what it seems. All Bitcoin transactions are on public display on the ledger. This includes all past transactions.
Furthermore, anyone can check the ledger and monitor specific transactions and interactions between addresses. The way the digital money flows is quite transparent.
Myth #8: The Various Identities of Satoshi Nakamoto
Ever since Bitcoin gained traction on the market, users, analysts, and developers continued speculating over the identity of the Bitcoin founder.
Since the person behind the cryptocurrency never came to light, there’s still no viable answer for the question – Who is Satoshi Nakamoto? It’s not even certain that that’s the founder’s real name.
Myth #9: Ethereum Is Better
Bitcoin and Ethereum are very different cryptocurrencies. Although Ether is a close second in terms of value and technology, it’s also very different.
Because the two technologies share different purposes, one can’t really compare the two. Even then, due to Ethereum’s technology branching out into different niches, it’s less stable than Bitcoin.
Myth #10: Bitcoin Is a Scam
Either a general scam or a Ponzi scheme. Bitcoin, and cryptocurrencies in general, have plenty of naysayers.
That said, its continuous stability, increase in value, and acceptance worldwide proves the contrary.
Bitcoin – More Fact Than Fiction
Some people may even think that Bitcoin doesn’t actually exist and that people are just somehow losing their money over the internet.
The reality is that very few manage to grasp the idea of a decentralised financial system and having a currency backed by maths. Bitcoin isn’t fiction and although it’s not represented by tangible assets, it can be used to purchase tangible goods and services.