5 myths about Bitcoin

People using Bitcoin

We are reading plenty of articles about Bitcoin every day. Depending on the week, the price of Bitcoin is either crashing or soaring. It is either taking over or burning out. The thing is, Bitcoin is hard to understand if you do not have a basic understanding of economics, computers and how cryptocurrencies work. 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. The truth is the last few years, many Bitcoin analytics companies have been able to de-anonymize cryptocurrency 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, making this #2 on our 5 myths about Bitcoin list.

Myth 3- Terrorists use Bitcoin

Bitcoin can be used for illegal activities, but until now, there is no proof that terrorists have used Bitcoin. The fact that we have mentioned in myth 1 that transactions are not completely 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 origin. 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. That’s why we feel volatility is #4 on the 5 myths about Bitcoin list.

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 on how you pursue Bitcoin. If you think Bitcoin is nonsense then probably I will think 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 you’ll think it is as much a waste as keeping the lights on in Federal Reserve.

What do you think about these 5 myths about Bitcoin or Bitcoin cash? We’d love to hear your comments below, thank you! Or read this next infographic article with 58 insane facts about Bitcoin.