Top 7 Most Popular Bitcoin Myths
The recent rise in the value of Bitcoin has rekindled the memories of falsehoods that widely spread more than a decade ago when the cryptocurrency was first introduced. Many newspapers and financial experts predicted that Bitcoin was a craze that would soon disappear.
It is true that Bitcoin can create sharp divisions (in terms of opinion) between those who support it and those opposing it. Those in support claim that it is just a matter of time before cryptocurrency replaces traditional money, gold, and credit cards.
On the other hand, those opposed to Bitcoin believe that the hype over it is short-lived and that it’s not a big deal. It is such antagonisms that have led to confusion and mistruths about what Bitcoin is all about.
Below are the top 7 myths about Bitcoin:
Bitcoin wastes a lot of energy
Those who engage in Bitcoin mining used large amounts of computing power to gain access to the Bitcoin network. This is why Bitcoin critics claim that the mining process wastes a lot of energy.
But what they don’t acknowledge is the value of each Bitcoin mined. Besides, a significant amount of Bitcoin mining apparently uses renewable energy.
Bitcoin is mainly used for speculation
This is not the full truth. Transactions worth $10 billion are settled on the Bitcoin network. That’s an average of more than 300,000 transactions daily. Although some of these transactions may be speculation, most of them involve investment purchases. There are many people who see Bitcoin as a great investment vehicle.
Governments will destroy Bitcoin
This is another misconception that’s often peddled about Bitcoin. It is a fact that some governments around the world have issues with regard to the use of Bitcoin. However, a majority of countries including the United States have embraced Bitcoin. They have even come up with policies meant to regulate digital currencies.
Bitcoin cannot serve as a store of value because of its volatility nature
Although Bitcoin is highly volatile compared to other investment assets such as government bonds, the situation is not as bad as many people try to portray it. Every type of investment has its own risk and the same applies to Bitcoin.
The rise of other cryptocurrencies will dilute Bitcoins popularity and value
From the time Bitcoin was launched, more than a decade ago, thousands of other cryptocurrencies have been created. However, this hasn’t affected the price or value of Bitcoin one bit.
Corporate and central bank digital currencies will make Bitcoin a thing of the past
While several central banks around the world have set out plans to launch their own digital currencies, few of them have the necessary technology and technical know-how. It’s only China that has made significant progress.
Bitcoin encourages laziness and easy money
This is definitely not true. Bitcoins are not issued for free or generated by anybody on the street. It is a currency just like any other only that it is digital.
Bitcoin has so far proved to many people that it is not a fad. It is a great investment opportunity that has stood the test of time. Take advantage of the Bitcoin bull run on SoFi and forget about the myths.