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  • Business - Your Money
  • Updated: August 09, 2022

Debunking Bitcoin And Crypto Myths And Facts

Regarded as the most popular cryptocurrency in the world, bitcoin came into the picture at the end of the 2000s and it was developed by none other than Satoshi Nakamoto.

This virtual currency depends on the bitcoin network or bitcoin-lifestyle.app for the crypto-transactions to take place. This wonderful digital money does not have any centralized control over it. 

Believe it or not, the bitcoin transaction is much safer than that of traditional currencies. Initially, the market for cryptocurrency had been quite unstable. But post-2015, bitcoin investors got to see an exceptional rise in the bitcoin value. 

Still, volatility exists in the crypto-market and so, there are plenty of bitcoin myths prevalent even today. Due to this reason, many investors stay away from the crypto market.

Read on to know more in detail about the myths about Bitcoins and cryptocurrencies to have an overall better understanding.

Dispelling The Myths About Bitcoin And Cryptocurrencies

The cryptocurrency of bitcoin has undergone its fair share of ups and downs. Still, this digital money is capable of providing new all-time high values on a daily basis.

Despite all these, there is no respite from the unnecessary rumours about bitcoin in the crypto world. So, let's have a look at the top bitcoin myths and facts and let's understand whether these myths make any sense or not.

  • Bubble- When there is any unsustainable rise in the asset value, that economic cycle is known as bubble. For many years, bitcoin has been acknowledged as a speculative investment due to its high return and volatility. Bitcoin is compared with the infamous speculative bubble of "Tulip mania".
  • No real-world use - There is a common misconception that bitcoin is the instrument to engage in illicit activities.  There are several critics who claim that bitcoin doesn’t have any use in the real world. They think that due to the anonymity of the bitcoin users, anyone can hack money as there is no need to disclose their identity.

           Due to the limited number of tradeable Bitcoins, the value of Bitcoins keeps growing. Another thing, all the bitcoin transactions take place on an open blockchain network which has the potential to track all kinds of illicit activities. So, bitcoin is much safer than traditional currencies.

  • Bitcoin can be replaced with a competitor- It is commonly believed that bitcoin will be replaced by any of its rival crypto-currencies any day. But in reality, around 60% of the crypto market features only bitcoin. Not only this, but due to the decentralized nature and the advantage of being an open currency, bitcoin also has the potential to move fast. Bitcoin makes international payments easier and it has started participating in the global financial landscape.

 

  • It is gambling to invest in bitcoin- Due to the price volatility of bitcoin, it is said that bitcoin investment is nothing but gambling. 

           But, in reality, bitcoin has attracted many institutional investors for its robust regulatory structure and growing market. If you study bitcoin, it will be much easier for you to keep getting positive returns from the crypto market despite the volatility of bitcoin.

  • Not environment friendly and lack of security- It is a popular saying that bitcoin is bad for the environment as bitcoin mining requires a good dose of energy. 

           But actually, a recent study has proved that bitcoin transactions are much more efficient than that of traditional banking systems. Do you know that a significant portion of bitcoin mining energy is drawn from renewable energy sources?

  • Bitcoin is not as secure as the traditional currencies- As bitcoin exists only in the online world, it is believed that the bitcoin is subject to cyber-attacks and you will lose all your money.

Conclusion
Now that you have a clear idea regarding the bitcoin myths and facts, it is time for you to decide whether you want to trust these myths or not.

At last, it can be said that bitcoin investment is full of potential and you must not deprive yourself of such high-return investment opportunities.

You can give try to Bitcoin Champion, Bitcoin Era and other bitcoin trading platforms for your investment.

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