Did you know that 22% of American adults (or 46 million) own Bitcoin? Despite the prevalence
of Bitcoin ownership, there are still so many myths floating out there that people believe in!
Because of this, some people might be hesitant to buy this cryptocurrency. Or worse yet; they
might believe some foolishly optimistic myth and go all in!
If you’re interested in buying crypto, then you’;ll want to be smart about it. And part of that is
dispelling the myths surrounding Bitcoin.
Here are some common Bitcoin myths you should know about, as well as the truth!
It Has No Place for Real-World Use
The nature of cryptocurrency means it’s a digital currency and not something you can hold and
touch. Because of this, many Bitcoin critics don’t feel like it has a place in the real world. And if
it does, it’d be for illicit activities.
The truth is, Bitcoin (and other cryptos) are highly useful for everyday transactions. They
eliminate the need for a middleman, whether it’s your bank or a payment processor.
In addition, people are looking to Bitcoin as something that’s resistant to inflation, which has
earned its name of "digital gold". Another thing that makes it similar to gold is there’s only a
finite amount (21 million), but it’s much easier to store and move around!
While there’s certainly room for people to misuse Bitcoin, there’s an overwhelming list of ways
to use it in real-world applications that are tough to deny.
For example, there are now Bitcoin ATMs where you can quickly and easily sell Bitcoin for
instant cash or pay for a purchase with extra cash you have lying around. ByteFederal has more
about this if you want to learn about the best Bitcoin ATM.
There’s No Real Value to Bitcoin
Just because people can’t see it, they believe that there’s no real value to Bitcoin. They tend to
think of it as invisible money, which therefore makes it play money.
However, as we’ve just said, Bitcoin is resistant to inflation because of its scarcity and finiteness.
Each day, more and more Bitcoin are being mined, which means we’re only getting closer to all
21 million being in circulation.
But in addition to that, there’s also another occurrence that makes Bitcoin even scarcer: halving.
Every 4 years, the amount paid to Bitcoin miners is halved, which makes mining go even slower.
Thanks to this and Bitcoin’s finiteness, this has kept its value soaring.
Bitcoin’s a Bubble
As with all sorts of investments, there’s always the fear that the asset is a bubble. What does this
mean?
It means that there’s a huge craze for something, which drives up the price significantly. Then,
the price crashes and usually doesn’t recover. This means that everyone who invested earlier ends
up with a poor investment since they can’t sell off what they have at a good price.
If you’ve heard that Bitcoin’s a bubble, this might’ve caused you to hesitate. But the good news
is, this myth’s busted!
It’s true that throughout the years, this crypto’s gone through several price cycles. Yes, the price
has dropped several times, but every time, it’s recovered, only to have a better price than ever
before!
Looking at Bitcoin more closely, the price swings are pretty typical for young markets. Because
of this, you can expect the swings to become smaller and smaller, until they become pretty
stable.
Investing Is a Gamble
Take any type of investing, and they’re all some sort of gambling. What makes them socially
acceptable is that they’e smart gambling.
Because Bitcoin’s been highly volatile in the last decade or so, people view Bitcoin investments
as throwing caution to the wind, like throwing dice at a craps table. But in reality, they can be
very wise choices to make.
As we’ve said before, the swings in Bitcoin prices are bound to keep decreasing and stabilize. So
in the end, investing is a gamble, but it’s also a wise financial decision.
It’s Not Secure
Because the technology is relatively new, many people are skeptical of how secure Bitcoin is.
This is especially true when you consider that it has open-source code.
However, it’s never been hacked and it’s had 99.9% uptime ever since 2009!
Part of the misconception/myth comes from the fact that hackers usually send malware and
ransomware that demand payments be made in Bitcoin. There have also been third-party
businesses that use Bitcoin that have been hacked. But as for Bitcoin itself, it’s never happened!
It’ll Be Replaced by a Competitor
Take a look at the list of available cryptocurrencies and you’ll be blown away by how many there
are. Surely, one of these will overtake and knock down Bitcoin someday?
If you’re investing in crypto, you shouldn’t put all your eggs in one basket anyway. But you won’t
have anything to fear if you do decide to put the majority of your money in Bitcoin.
This is because it’s the first successful cryptocurrency, and it’ll most likely remain so. It heavily
dominates the crypto market and its value is significantly more than even the 2nd-place crypto.
Do note that 51% of the community can vote to upgrade the network and create a fork. A fork’s
basically a better version of Bitcoin, such as Litecoin.
These upgrades can give life to a much sleeker and more attractive version of Bitcoin, but
experts don’t think it will.
Don’t Believe These Bitcoin Myths
Now that you know some common Bitcoin myths and the truth about them, you’ll feel a lot better
about investing in this cryptocurrency. By knowing how to weed out myths from truth, you’ll
come out on top. So it’s about time to bite the bullet and start investing!
If you want to learn more about buying Bitcoin and the cryptocurrency market, then read our
other blog articles now.
