5 myths about Bitcoin

People using Bitcoin

We are reading plenty of articles every day about Bitcoin. Depending on the day, the price of Bitcoin is either crashing or soaring. It is either taking over or will soon die. The thing is, Bitcoin is hard to understand if you do not have a basic understanding of economics, computers and how cryptocurrencies are working. As a result, there are plenty of myths about Bitcoin circulating in mainstream press and blogs. Before going through the 5 myths about Bitcoin, let’s see more facts about Bitcoin in the infographic prepared by experts from Bitcoin Play.

Myth 1- Bitcoin is Anonymous
It is safer to say that Bitcoin users are operating under their 34 digit addresses and it is not obvious who is acting under each address. Every transaction made with Bitcoin is recorded in Blockchain, which is a public ledger. Last few years many Bitcoin analytics companies are able to anonymize those addresses.

Myth 2- Bitcoin is dead
You may always hear or read that Bitcoin is dead. That is not true especially in 2017 when the number of daily transactions has never been so high, approximately 300,000 transactions per day. The number keeps growing.

Myth 3- Terrorists use Bitcoin
Bitcoin can be used for illegal activities, but until now, there is no proof that terrorists used Bitcoin. The fact that we have mentioned in first myth that transactions are not that anonymous will make it hard to make illegal activities leaving no trace. The best untraceable money transaction is still cash. Winklevoss Twins, the founders of Gemini Bitcoin exchange, have said, “Bitcoin is a heaven for stupid criminals”.

Myth 4- Bitcoin is volatile that is why it is useless
Bitcoin has been volatile since its foundation. Nevertheless, the trend was always to lead it to stability. Bitcoin owners are not using it as a unit of account; it is mainly accepted as a store of value.

Myth 5- Bitcoin Mining is a waste of electricity
The reports show that Bitcoin uses as much power as the annual consumption of 674.5 average US homes. So is this a waste? It depends how you pursue Bitcoin. If you think, Bitcoin is nonsense than probably it wastes the electricity. However, if the idea of decentralized currency is important to you, and you understand that the electricity is used to secure all of the transactions on the network, then probably it is as much waste as keeping lights on in Federal Reserve.