Busting the 6 Biggest Bitcoin Myths

There is much speculation around the subject of Bitcoin on the internet. Much of the speculation arises because people have been misinformed about the concept of cryptocurrency. Sometimes, the public has formulated opinions on Bitcoin based on hearsay, rather than from actual research.

As punters of the Blockchain, we have seen it fit to inform the public on some of the biggest Bitcoin myths out there. Once you are done with this article, you won’t only be well informed, but will also be suitably equipped to bust the myths when they arise in your social or professional circles.

Below are 6 common misconceptions about Bitcoin and the Blockchain:

1. BITCOIN ENCOURAGES CRIMINAL BEHAVIOUR

All that Bitcoin offers is privacy and security, the reality is that while some ne’er-do-wells will abuse this system there are far more honest, salt of the earth people who use the Bitcoin platform as a way to support their families.

A prime example of the amazing way in which the people of Venezuela are using cryptocurrencies as a way to survive while their government continues to fail them. Bitcoin has literally saved lives, and that shining light is worth all the challenges that come with a burgeoning platform.

2. HALF OF ALL BITCOIN IS CONTROLLED BY 1,000 PEOPLE

This is essentially the Area 51 of the Bitcoin world – there’s a lot of speculation and zero proof. There are currently over 20 million Bitcoin wallets in the world. Though, in theory, a few wallets can belong to one individual, the reverse could also be true. One wallet could hold the Bitcoin of several co-investors.

We know that exchanges work in this way. Often their cold wallets store thousands of peoples Bitcoin for them. Because cryptocurrency is not attached to human identities, but rather to BTC addresses, it is virtually impossible to tell how many people own Bitcoin in the world.

3. BITCOIN IS BAD FOR THE ENVIRONMENT

While we’re used to handling the notes and coins associated with fiat currencies on a daily basis the sad reality is it takes tons of paper, material fibres, inks and metals to create. The environmental impact is large and ongoing given the need to constantly update and replace it to avoid fraud and wear-and-tear.

The digital nature of Bitcoin mining means that all that’s really needed over and above what we already use – i.e. our computers – is additional electricity. While it’s not ideal to use anything that impacts the earth nothing in society is 100% footprint-free, yet.

4. BITCOIN IS AN EXPENSIVE INVESTMENT

Though 1 Bitcoin is $5,155 at the time of writing, you are not forced to buy a full coin. A Bitcoin can be split down into 3 smaller percentages, which can all be bought at an exchange.

1 Bitcoin (BTC) equals:

  • 1,000 mBTC
  • 1,000,000 Bits
  • 100,000,000 Satoshis

With this range of purchasable fragments of a Bitcoin available to you, the actual cost of your investment in Bitcoin is determined by your budget.

5. BITCOIN IS TO VOLATILE TO BE A GOOD INVESTMENT

There are a large number of over overnight millionaires who would disagree with this statement. 2017 proved to the world that Bitcoin was a great investment platform. This year (2019) alone has seen a climb of nearly $2,000 in the coin’s value. Admittedly, it is recovering from a big fall that occurred in 2018.

Yes, Bitcoin is volatile, but it’s because it is a product of decentralisation. The Blockchain is free of third-party manipulation and control, so its value and volatility is down to its popularity. The variance level may settle in the future, but for now, investors know what they are getting into and realise that Bitcoin is on an up.

6. BITCOIN TRANSACTIONS ARE EXPENSIVE AND TAKE TIME TO PROCESS

Though there are fees charged on Bitcoin transactions, they are minuscule compared to regular banking fees and forex charges levied on fiat currency transfers.

While the Blockchain may not be able to process as many transactions in a day as some of the fiat platforms can, it still processes faster than all wire transfers and EFT services, which can take up to 5 business days to verify a single transaction.

The more recent introduction of the Lightning Network allows for all the smaller Bitcoin transactions to be processed off-platform so as to streamline Bitcoin services. There is no reason why you should wait more than a few hours for transfers to be verified.

EDUCATION IS KEY TO OVERCOMING FUTURE HURDLES

Blockchain is a thriving platform that offers great business opportunities to many companies around the world. Vegas Casino is a clear example of the success that ‘Bitcoin-First’ companies can enjoy online.

As such, Bitcoin offers far more pros than cons. Education in Bitcoin is the key to putting conspiracy theory behind us. The more the public is exposed to it, the less speculation there will be.