Here Are Some Bitcoin Facts And Myths For Every Trader To Know

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Here Are Some Bitcoin Facts And Myths For Every Trader To Know

Source – www.cnn.com

Bitcoin is one of the most exciting topics these days because investors find it quite interesting, . Though it has lots of crazes still people do possess some myths in regards to that. So have a look to understand the myths related to bitcoin from the bulleted pointers below. 

Myth no 1

Bitcoin users are anonymous– Some say that Bitcoin users are anonymous and that is not really in a true sense. Remember whenever the bitcoin users indulge in any kind of transaction, they always follow a pattern in the respective blockchain. Therefore, you can assume from this that they are not bound by any law. 

Supporting Fact– But the fact is that users who are availing of the bitcoin exchange platform need to submit all their documents. And these documents are kept as a record. The papers can be traced as and when needed. 

Myth no 2

In the future bitcoin can work like credit cards– Well, this is one of the most renowned myths Bitcoins are like credit cards. But yes, it is a fact that transactions made through bitcoins are faster and easier. Precisely it works seamlessly like all other credit cards that operate in the whole world.

Supporting Fact– Bitcoin does not have the adequate technical expertise to meet the status of the universally operated credit card. Note that those credit cards are designed to meet daily transaction needs. 

Myth no 3

Works on the Ponzi model- Well, bitcoin is often considered to work on the Ponzi model. 

Supporting Fact– Bitcoin works on a decentralized system therefore no investment company or any centralized authority has the right to administer its consumption or production.

Myth no 4

Bitcoin Is Expensive- As per the bitcoin experts, the cost of one bitcoin is nearly about 6000 dollars. 

Supporting Fact– If you consider the exchange value then it is quite high. But you will have the chance of purchasing bitcoin at an affordable rate. But in that case, you can get a fraction of the bitcoin. Note that the bitcoin with the minute value is Satoshi.

Myth no 5

Volatility- Bitcoin is a volatile value and it’s shown dynamic since it got introduced in 2009 by Satoshi Nakamoto.

Supporting Fact– However, this is partially true because after 2009 it showed a stable trend till 2014. You can get the full details of its rise and falls from the bitcoin statistics. Till the third month of 2017, the bitcoin price showed an upward movement. And then after that period, it followed a downward trend. Now, this is quite natural because a financial market does face such things. Since that period, the price movement has been stable. 

Myth no 6

Used for illegal processes- The myths state thatBitcoins are mainly used for illegal purposes.

Supporting Fact– Well, bitcoin is not completely illegal. Actually, Bitcoin transaction allows a bit of anonymity that makes people indulge in the black-market activities. But that is not so obvious. 

Now the same thing happens with Fiat money as well. So, it’s not the current form it is the people who engage in such things. But yes, fiat currencies are under observation so that no illegal things take place, so the same monitoring is required for the digital currency as well. 

Myth no 7

Bitcoin is scam – Bitcoin users have to be aware because here there is a chance of money getting ripped off by scammers. Well, it is not that you will have to face any scam the main problem is due to the fear that people have regarding bitcoin. And the main problem is that there is a chance of personal information getting leaked. That again makes people think that somewhere bitcoin is compromising privacy. 

Supporting Fact – But the fact is Bitcoin seems to offer a more secure form of payment compared to the Fiat form the currency. Now coming to the blockchain it is complicated and intricately engineered so it is impossible for someone to breakthrough one’s personal information and use them for their benefit. 

Conclusion

These are some of the important bitcoin myths and the relevant myth-busting facts which should be looked at before making an opinion about Bitcoin. If you are planning to start trading in Bitcoins, try out Bitcoin Era today. 


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Author: Firdaus

I work as an IT consultant in the Toronto area and I love to write blogs about a variety of subjects. My passion for writing stems from the desire that everyone should have access to meaningful information. Whether it is a blog about society, culture, technology, or social media, I don’t want to miss the opportunity of sharing my thoughts with my friends and audience. Since I believe in mutual exchange of ideas, I am always on the lookout for a feedback on my writings.

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