Unveiling the myths about Bitcoin

by Lalithaa

Termed as a decentralized digital currency, Bitcoin is quite on-demand these days. This extraordinary cryptocurrency was invented by none other than Satoshi Nakamoto in 2008 and was introduced in the main market in 2009. With the help of the Bitcoin network, you can send your money from one person to another.  This particular cryptocurrency market generally uses a third-party exchange broker to convert Bitcoin into cash. Click the image below to learn more about the Bitcoin network.

What are the facts and myths about Bitcoin?

Though Bitcoin has been around the picture for more than a decade, there are still some myths regarding the concept of Bitcoin. If you think of trading in Bitcoin, you should learn about these facts and myths properly. Let’s start

  • Bitcoin is associated with absolute anonymity- Many investors around the world still believe that a Bitcoin transaction doesn’t leave any pattern or transaction history. But this is not entirely true. Whenever you think of using Bitcoin with the help of blockchain or Bitcoin networks, you engage in payment transactions which leaves a prominent pattern behind. You can trace a Bitcoin transaction through a paper trail if you want.
  • Bitcoin is the new credit card– Well, a Bitcoin can’t take the place of a credit card. The credit card network is pretty wide, unlike the Bitcoin network. Also, if you wish to use Bitcoin as a credit card, you will have to pay a certain fee for every transaction through the Bitcoin network. Scalability is one of the key concerns, compared to the conventional payment modes like credit cards, the execution of transactions is still under scrutiny. As a result, Bitcoin will never replace the globally operated credit card system, at least in the near future.
  • Bitcoin is quite expensive– According to data, Bitcoin will cost you around $6000. But the best thing about Bitcoin is that you can always afford to buy a fraction of Bitcoin. This way, the purchase of Bitcoin will come under your budget. After all, cryptocurrencies like Bitcoin have high exchange value.
  • The volatility of Bitcoin– The cryptocurrency, mainly Bitcoin, was volatile during its initial years after inception. But after that, the volatility level of Bitcoin has been reduced a lot. Now, the Bitcoin market is showing a stable trend. Bitcoin is no longer volatile at all. If you invest in Bitcoin and monitor the crypto market daily, there is no chance that you will bear any loss.
  • Bitcoin is related to illegal activities– Some people still believe that those who invest in Bitcoin can commit some crimes. This myth regarding Bitcoin is associated with the anonymity myth attached to a Bitcoin transaction. Here, one needs to believe that Bitcoin transactions also fall under the laws and rules. This way, if there is an illegitimate transaction, it will be noticed, and the concerned authority will take action against it.
  • Bitcoin users are prone to theft and fraud– Bitcoin transactions do not ask for the personal details of a person. As a result, some people who lack knowledge regarding Bitcoin think that the Bitcoin users will be able to commit any type of cybercrime they want, and they will get away without any punishment. This is not going to happen. Bitcoin offers a much more secure option for payment transactions than traditional currency. The Blockchain system adds cryptography, thereby increasing the security of the system.
  • Cryptocurrency requires too much energy– Well, cryptocurrency requires much less energy than traditional financial institutions. These financial institutions spend a lot of energy in their daily business for years. At the same time, Bitcoin consumes only a fraction of this energy.

Wrapping it up !!!

Apart from this, some people still believe that Bitcoin cannot be used to make payments. In this context, you should know that many countries around the world are thinking of introducing Bitcoin ATMs to the customers so that they can exchange money with Bitcoin with ease.

Crypto platforms have transformed the way trading in the crypto world takes place. This is an easy-to-use platform that also adheres to stringent KYC practices, ensuring creating a safe platform for Bitcoin or cryptocurrency trading. You can choose other platforms as well, but make sure that the decisions are driven by thorough research and a complete understanding of the trading market.

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