With major news about Bitcoin breaking almost every day, now seems like the right time to look at some of the most common myths and misconceptions about the world’s first cryptocurrency. It’s important to check if they have any merit and set the record straight. In general, perceptions of cryptocurrencies vary, as they are often viewed as a speculative fad or a technical breakthrough that will irrevocably alter the banking system. Therefore, investors must separate fact from fiction and do their research to evaluate the risks before jumping in and avoid making expensive mistakes. Within this article, you will find four common misconceptions about Bitcoin and the real story behind them.
Bitcoin Doesn’t Have Any Real-World Uses
Critics often claim that Bitcoin isn’t useful in the real world and also state that if there is a real use, it’s most likely associated with illicit activity. In reality, neither of these claims is true, as Bitcoin has a long history as a means of making payments. In recent years, Bitcoin has been nicknamed ‘digital gold’ due to its popularity as an inflation-resistant store of value, much like gold. An increasing number of major funds and publicly traded companies, including Tesla, Square, and MicroStrategy have purchased millions of dollars worth of Bitcoin to ensure better management of their assets.
Buying Bitcoin Online Is Complicated
Although it may seem complicated at first, with a bit of research and planning, beginners can quickly start buying and selling Bitcoin. Thanks to platforms, such as Paxful, buying Bitcoin online is now easy and simple. Once you have registered, you’ll receive a crypto wallet to store the cryptocurrency you earn from trading. You can fund your account using a variety of methods, such as bank transfers from a current or savings account, PayPal, as well as a debit and credit card. Then you’ll be able to place your first order and choose your investment strategy.
Investing In Bitcoin Is A Gamble
While it’s true that Bitcoin has experienced price volatility over the last decade, that usually occurs in a young and growing market. However, as Bitcoin has continued to mature, a robust regulatory structure has been introduced in many countries, which has resulted in a wave of institutional investment. Therefore, to decide whether Bitcoin or any other cryptocurrency has a place in your investment portfolio, you’ll need to take your personal circumstances, risk tolerance, and investment time horizon into consideration. Although Bitcoin has trended steadily upwards, it has also experienced substantial down cycles. It’s crucial to be careful when navigating volatile markets and making major investments.
The Bitcoin Network Isn’t Secure
Misconceptions around the level of security of Bitcoin arise from attacks on third-party businesses, using Bitcoin, and not the Bitcoin network itself. In reality, it’s important to point out that the Bitcoin network has never been hacked. Bitcoin is also the only monetary system, which has never allowed counterfeit currency to circulate. Although theoretical concerns exist about Bitcoin’s potential security in the future, these threats would affect all digital systems, and not just Bitcoin. Additionally, a vast amount of computing power works to secure the network. There are miners distributed throughout the world, meaning that there are no single points of failure.
Troy is a freelance writer, author, and blogger who lives, works, and plays in Boise, Idaho with the love of his life and three very talented dogs.
Passionate about writing dark psychological thrillers, he is an avid cyclist, skier, hiker, all-around outdoorsman, and a terrible beginning golfer.
