As we have entered a new era of digital currency, cryptocurrencies are becoming very popular globally. However, bitcoin is the most popular and effective digital currency right now. From buying things to investing, the demand for bitcoins is expanding every year.
Yet, many people still don’t know a lot of things about bitcoins. To specify, there are many myths around cryptocurrencies. If you are still believing these myths, it’s time to debunk them.
So, before doing oil profit login, let’s find out what are the common myths of bitcoins. In the following, we have handpicked the top seven common myths you should avoid.
What is Bitcoin?
Before we start with bitcoin myths, we need to know about the basics of bitcoins. Well, bitcoin is one of the popular cryptocurrencies that was created in 2009 by an unknown person. The special thing about bitcoins is there’s no middle man when you are making a transaction.
This means you don’t have to care for the government or banks. So, you can easily make a hotel booking or doing international payment. Bitcoin investment has also become popular nowadays.
You can buy bitcoins from various marketplaces. In fact, these marketplaces provide buying and selling of bitcoins. Moreover, you can transfer bitcoins to other people. Many platforms provide bitcoin mining to get bitcoins. Plus, you can’t see a buyer’s or seller’s name while making a transaction.
Biggest Bitcoin Myths
Finally, you know what is bitcoin and how you can use this currency. If you are still hesitating with bitcoins, we are covering some myths in the following.
1. Bitcoin is Not Secure
After gaining popularity, bitcoin has faced various scams and thefts. It probably happens due to the anonymous as you can’t see the profile IDs of buyers and sellers. Many people are targeting this issue to do some illegal activities.
That does not mean bitcoin authority is not secure. When you are buying bitcoins from a reliable marketplace, you can avoid all these scams.
2. Bitcoin is Complicated to Use
Many people think that using bitcoins is very complex. Maybe it’s because cryptocurrencies are still new and people need time to adopt everything. However, bitcoin investment is quite easier than equities and gold investments.
You will use bitcoins just like you are using your money. Plus, as there’s no middle man, you don’t have to pay credit card fees and taxes to make an international payment.
3. Digital Currencies Are Bad for the Environment
As the popularity of digital currency is increasing, many people are saying it’s not good for the environment. Bitcoin needs mining operation, and each mining operation needs a massive amount of computational power.
In reality, bitcoin needs this basic thing but it’s not bad for the environment. On the other hand, banks also require tons of electricity to operate their system on a daily basis.
4. Bitcoins are Scam
As we mentioned before, there’s a common myth about this new digital currency is it’s totally a scam. Sure, there’s a chance of attack from hackers. But that does not mean bitcoins are scams.
It depends on those people who are misusing this new currency. Bitcoin is the most reliable cryptocurrency as you can see the popularity. Plus, you need to find the right place to buy and sell bitcoins.
5. The Price Has Not Increased Since 2017
This is a myth that was spread by some investors who entered the digital currency world in 2017 when bitcoin reached an all-time high value of $20,000. Nowadays, these investors are being critical of this digital currency. In reality, the bitcoin price has been increasing since 2017. This is why bitcoin has become one of the popular topics in 2020.
6. Bitcoin is Anonymous
Most governments don’t like bitcoin because it’s anonymous. They claim that nobody can read what someone is doing on the bitcoin blockchain. This myth is not true at all. In fact, bitcoin is a public blockchain and people can read all the transactions. This rule has been activated since the start of bitcoin in 2009. Only the identity of the user can be kept anonymous.
7. Promotes Money Laundering
When the price of bitcoin increased in 2017, many banks started criticizing it. They were saying that bitcoin is used to launder dirty money. However, this myth is totally false. Many studies have revealed that the risk of using bitcoin is minimal.
People who are criticizing too much, they are being competitors, are trying to divert the attention of people from bitcoins.
Bitcoin is the new era currency. However, there are various myths around bitcoin. We have covered some common myths. Still, you need to be careful with a lot of things, especially when you are a beginner. To get more information, you can contact an expert or search for resources on the internet.