Decoding Crypto: Six Common Myths About Bitcoin

Decoding Six Common Myths About Bitcoin

There’s no denying Bitcoin and cryptocurrencies are controversial. From countries that outright ban and prohibit them to ecological concerns, Bitcoin and cryptos have their share of opponents. But are all the contents voiced in the mainstream media true?

Here we will seek to dispel six common myths about Bitcoin commonly repeated in the mainstream media! Maybe once and for all we can inject some truth into the conversation regarding cryptocurrencies!

Six Common Myths about Bitcoin:

Myth 1 - Bitcoin is completely anonymous

While all Bitcoin transactions are made public on the blockchain ledger, the transactions do not have to be connected to the real-world identity of the person making the transaction. This is sometimes known as Know-Your-Customer (KYC). Sophisticated and advanced blockchain analysis can be used to track, geolocate, and identify the individuals who execute transactions. Nearly all centralized exchanges in the world require some form of KYC.

Ask yourself: Would you want the government to know every transaction you ever make?

Myth 2 - Bitcoin is only used for illegal activities

While it can be said that Bitcoin has been used for illegal activities, the same could be said for any form of currency or payment method. In reality, Bitcoin is used for a variety of valid and legal purposes, including digital transactions, investments, and cross-border payments.

Ask yourself: Do you think fiat currencies are only used for good? Criminals love cash!

Myth 3 - Bitcoin is too volatile to be a currency

While Bitcoin has seen significant price swings in its trajectory, it has stabilized over time and expects less volatility the more it matures. Additionally, many businesses and individuals chose to invest in Bitcoin as a long-term holding, rather than use it as a quotidian currency. Many fiat currencies also experience extreme volatility as well (See Argentina or Lebanon in recent years).

Ask yourself: Do you think Central Banks have had the chance to prove sound monetary policy? If so, is it time for a change?

Myth 4 -Bitcoin isn’t a real asset

Bitcoin is a digital asset existing on a decentralized ledger, called a blockchain. It has real-world value because it can be traded, used as collateral, and held as an investment, just like other assets and commodities. Bitcoin has value because millions of users say it does.

Ask yourself: How does the British Royal Pound Sterling retain its value?

Myth 5 - Bitcoin is too complex for average people

While it is true that Bitcoin and blockchain technology can be esoteric, increasingly friendly user interfaces and products are emerging. There are increasing resources available for those looking to learn about Bitcoin and cryptocurrencies as well.

Ask yourself: Does the average person understand the intricate workings of the US Federal Reserve or the European Central Bank?

Myth 6 - Bitcoin mining uses too much energy and harms the environment

While it is true that Bitcoin mining requires energy, the exact amount of energy used and its impact on the environment can be difficult to determine. Nowadays, many Bitcoin mining operations use renewable energy sources to reduce their environmental impact. More and more clean energy solutions are being developed for bitcoin mining.

Ask yourself: Does US 1-cent Penny production justify its usage?