Top 5 Bitcoin Myths and the Truth Behind The Lies

Top 5 Bitcoin Myths and the Truth Behind The Lies
Many times I’ll run into people new to the idea of Bitcoin and they have heard some mainstream news program or some random person confuse them about Bitcoin. These include common half-truths, ignorance, or fully erroneous news passed off as facts on how Bitcoin works. As a public service, here are five common misconceptions, or myths, about Bitcoin and things you can retort if you are ever to meet a walking fountain of misinformation. (This list is really much longer than five myths, and may be amended in the future.)

Bitcoin Myth #1: Bitcoin doesn’t do anything the other coins can’t do. It’s nothing special.

Bitcoin is the original crypto-currency, so the “Altcoins” are many times derivatives of Bitcoin or offshoots of its blockchain. It may not even be possible to buy an alt coin without buying Bitcoin, so it acts as a global reserve currency for decentralized digital currency.

Bitcoin is held to just 21 million coins. Most coins are much greater in volume, as much as One BILLION coins circulated, destroying any real lasting monetary value. Bitcoin’s Blockchain security has proven to be hacker-proof and is the industry standard. Bitcoins can even carry up to 1000 bits of digital information (keys, combinations, signatures, etc.) per coin, and can be broken into millionths of units, as needed, for micro-transactions.

Bitcoin Myth #2: Bitcoins don’t do anything a Dollar or Gold cannot do.

Compared to the dollar, Bitcoins rise in value. Dollars do not. Dollars have lost value every year since WWII. Dollars can only be divided 100 times. Bitcoin? 1 Million times. Dollars are controlled by a private company! Bitcoins are decentralized.
Relative to Gold, you can buy goods and services directly with Bitcoins. Gold prices are manipulated by major private banking interests. Gold is harder to move, store, and acquire. Bitcoins, being a digital file, can be backed up online, and stored multiple times (But can only be spent once.)

Bitcoin Myth #3: Bitcoins aren’t backed by anything of value.

Bitcoins are backed by the same thing as the U.S. Dollar, or any other currency, for that matter. Bitcoin’s value is backed by market demand. The Dollar hasn’t been backed by anything “of value” since 1971 when it was removed from The Gold Standard for good.

Bitcoin Myth #4: Bitcoins don’t have any intrinsic value.

Dollars have higher demand, and are widely accepted, but Bitcoins can do more. Bitcoins value increases while dollars do not. Bitcoins are not manipulated by private companies and governments. Dollars can be hard to move cheaply or securely while Bitcoins do this naturally. Demand for the dollar is fading globally while demand for Bitcoins is still growing. Many would call these features valuable.

Bitcoin Myth #5: Uses “unproven”cryptography for security that makes Bitcoins worthless.


 Cryptography has been used by governments, militaries, and any top-level security agency (NSA) for over 50 years. Versions of this are currently used today, by you, to do things like online banking. Cryptography represents the state-of- the-art in security, and the Bitcoin Blockchain has shown no weakness in millions of transactions worldwide, after over seven years of service.

Source : bitconnect


Comments

Post a Comment

Popular posts from this blog

A Beginner’s Guide To Get Started in Cryptocurrency

That’s me a week ago – my face pressed up against the glass, wishing I could get into cryptocurrency. I’ve followed the news enough to know there’s something big going on right now, and I wanted to get in it before it was too late. The problem was, I didn’t think I was smart enough to get started in cryptocurrency. Not tech-savvy enough. I just left it to the computer-elite while I continued to use my increasingly obsolete government-issued currency. Then — suddenly — I no longer had a choice! In a sink-or-swim moment, I got a client that only paid in crypto (guess which one) and had to learn the basics fast or miss the opportunity. I’m glad I finally buckled down and learned how to break into this world, and I wanted to show others like me that it’s not as much of an exclusive club as you might think. Below is what I learned as an outsider entering this world for the first time. This information helped me get started in cryptocurrency, and I hope it can help you too. How Does C...
Read more

This 19-Year-Old Bitcoin Millionaire Offers 'Crucial' Advice For Young People Looking To Invest

Image
Teenage bitcoin millionaire Erik Finman, 19, has advice for young people looking to invest in the cryptocurrency: "Find what you're good at, and find a way to make money doing it." "This is crucial for young people," he writes on Twitter. "Establishing an extra stream of income will allow you to start investing earlier." TWEET Finman currently owns 401 bitcoins, which he confirmed with CNBC Make It, or over $4.4 million at the rate of $11,182 a coin. The teenager began investing in bitcoin in May 2011, after receiving a $1,000 gift from his grandmother at age 12. Finman tells Forbes that his knack for politics is actually what got him interested in bitcoin initially. "[I] saw this as an incredible way to transcend the financial system including Wall Street," he tells the magazine. However, notable financial experts like Warren Buffett have warned against investing in bitcoin. "In terms of cryptocurrencies, generally, I ca...
Read more

Is it too Late to Invest in Bitcoin or Not( Probably Not )

Image
The whole purpose of the invention of Bitcoin was to have a currency free from the government and banks. Do you know what was the reason of the 2008 market crash? Irregularities and corruptions in the banking system. Banks had given loan to everyone without checking their credit history and failed to recover even the original amount. The global market crash started on September 29, 2008 and the initial Bitcoin paper was proposed on 31st October 2008. Can you see the pattern here? And I repeat again, “Initial Purpose of Bitcoin was to have a currency free from banks and governments” ________________________________________ Now suppose we are sitting in a class, right next to each other. I have a pen and I gave it to you. Do we need a third person to help us make this transfer? Will you ask the teacher to take the pen from me and give it to you? Maybe, we’ll need someone to keep the track of “who is the owner of the pen now?” but we don’t need anyone to make the transf...
Read more