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As more and more people began to accept Bitcoin as part of their daily economy and an important part of society, some false beliefs about crypto began to gain ground among the people. We shall take a look at some of the Bitcoin myths and also make some clarifications about them.
Some Believe That Bitcoin Is for Criminals:
Contrary to this notion, cryptocurrency is built on the foundation of transparency via blockchain technology. Recent research based on this subject compares the total volume of fraudulent use of global cryptocurrency with the total fraudulent use of global traditional means of economy, and the result shows that the use of crypto for fraud is lesser in comparison to the use of traditional currency in fraudulent activities. The statistics show that only 0.15% of the global volume of crypto is used for fraud, but about 5% of the global GDP can be traced to fraudulent activities.
We must know that Bitcoin is not meant only for criminals. For example, in the event of a war or disaster in a location, when the local economy is in disarray, people all over the world can provide assistance and donations to the needy in that region using Bitcoin. Also, Bitcoin is not affected by harsh monetary policies since it is a decentralized economy where individuals have full power over their money.
Some Believe That Transactions Done With Bitcoin Cannot Be Traced:
Although people can indeed carry out transactions through Bitcoin without submitting their personal information, all wallets have their own unique designated addresses on the Bitcoin network. Indeed, those designated addresses are not directly connected to the identities of the owners, but if human identity is required for any reason, it is possible to trace the address to the owner.
Furthermore, once an address is associated with a person’s identity, anonymity is permanently lost because every Bitcoin transaction is permanently recorded in a public ledger. Therefore, Bitcoin is not quite as anonymous as we may think. A better word to use instead of anonymity should be pseudonymous.
Some Believe That Bitcoin Is a Bubble, It Is Overhyped for Nothing:
Although Bitcoin has indeed suffered major volatility in the past, along with several other crashes of 70% or more, just before you scale the timeline, you will see that the minimum value of the cryptocurrency industry is rising steadily. This is not typical of a bubble. By default, Bitcoin is a depreciating asset. Since there is a fixed amount of 21 million coins, of which more than 90% are already in use, even a slight increase in demand for Bitcoin can have a significant impact on its price.
Bitcoin speculation is fueled by a variety of variables, but at its core, the cryptocurrency has intrinsic worth. Its rating is based on its usefulness as a worldwide method of payment choice for anybody. It is also a very fast payment method.
This is the main reason people are enthusiastic about Bitcoin as a fantastic financial instrument. It is also regarded as a reliable store of value. But considering its volatility, one must take a long view since it is viewed as an investment.
Some Believed That You Can’t Use Bitcoin for ‘Real Life’ Transactions:
In the early days of cryptocurrency, established financial institutions looked down on and ridiculed this initiative. Some of the financial experts referred to it as ‘magic internet money’. However, since then, the global crypto market has grown significantly, reaching hundreds of billions.
Bitcoin is gradually demonstrating its value as a lucrative means of trade as well as a tool for investors. Nowadays, you can use cryptocurrencies to make purchases at many stores around the globe. It also comes in handy for online e-commerce transactions.
Some Believe That Satoshi Nakamoto Is the Grand Controller of Bitcoin.
A white paper titled “Bitcoin: A Peer-to-Peer Electronic Currency System” was submitted to a cryptography mailing list at www.metzdowd.com on October 31, 2008. The alleged author was believed to be Satashi Nakamoto. But no one knows this person.
Satoshi Nakamoto played an active role in the early phases of Bitcoin’s creation, including the network and the software, but he eventually left the project and was never heard from again.
One thing to note as a fact is that no one individual has ever had authority over the Bitcoin protocol. This is because the program is open-source and everyone is free to use it and make contributions.
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