People sure have heard about cryptocurrency, but they also have some heard some aspects that aren’t completely truth; in fact, not at all true. News like myths have been surrounded the cryptocurrencies especially Bitcoin offers.
Sometimes we think that Bitcoin is all about the hype. But that is not true. Here we have found some of the myths and the facts along with it. Read carefully and debunk them at the same time.
- Bitcoin does not possess any real value
Bitcoin has no real backup such as fiat money, government support, silver, or gold. Therefore, people think that these crypto has n real value. However, the fact that it has no backup by these, it makes bitcoin free from inflation. Inflation affects fiat money when the supply become too much. However, there always will be 21 million bitcoins and not a single more. Therefore, this scarcity will always impact the price of bitcoins positively. Because the limitation in supply will only increase the value.
- Bitcoin is not secure
Bitcoin uses the technology of blockchain behind it which is the most trusted source of it. Blockchain typically is an open public ledger where the records are being encrypted. The best part about Bitcoins is it can be accessed from any part of the world. So, when something is in front of eyes of millions of people all across the world, how much scope do you think is left for forgery?
In fact, whenever a transaction record enters the blockchain, one previous block gets encrypted in the blockchain. Also, when a transaction happens, one needs to get it validated from the miners.
- Cryptocurrencies are harmful for the environment
More than often, we hear the fact that bitcoin trading is very harmful for our environment. There stands the option of fossil fuel powers as well. Drawing the energy or electricity from this, will definitely reduce the energy consumption of bitcoin. There are also chances to get it from sustainable energy forms. In both cases, the risk of harming our surroundings becomes reduced. Many countries are now trying to find such ways to reduce the cost and save the environment.
- It is gambling investing in bitcoin
The crypto market is highly volatile thus always going up and down. In many cases, it is seen that investors consider Bitcoin a pure form of gambling. However, the situation is not like that. When an investor is putting their money in crypto, he or she has legitimate reasons behind hoping they would have a good profit.
In fact, the chances of winning falls more on the favor of the house. Also, there are various strategies that help the investors reduce the chances of risks. One such method could be dollar-cost-averaging. With this strategy, you will keep investing some amount of money every week or every month no matter what the market price is. It results in good always as the risks become reduced and chances of making better profits become more prominent.
- Bitcoin will be replaced by any other crypto in the market
Among all the successful digital currencies, bitcoin is the most famous one. Afterwards, thousands of other crypto coins were invented based on bitcoin. In fact, some of them were also an improvised version of bitcoin.
However, the fact says that bitcoin has always been the most popular and vulnerable among all the cryptocurrencies ever existed. Bitcoins being the most popular of all the crypto markets, holds 60% of the entire market.
- Bitcoin does not have any real-world usage
Since its invention, there are many people who have been criticizing Bitcoin for its characteristics. They also stated that with bitcoin, there will be many illicit activities and the currency will not last long. However, both of them become false. There are many real-life usages of bitcoin. For example, the electronic vehicle company Tesla Inc. accepts bitcoin as one of their payment methods.
So, these were some most common myths about Bitcoins. Hopefully, investing in bitcoin would be easy for you now. And, to also have a easy platform to invest in, you can check out Bitcoin Era