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Bitcoin (BTC) is one of the most sought after assets amongst investors. But, despite its surging popularity, news covering BTC often quote gossip and hearsay.
And due to their massive reach, people consider them as official information.
It is essential to glean facts from the fluff. BTC’s design heavily borrows from mathematics and cryptography. The protocol functions with code and calculations.
Therefore, every discussion surrounding bitcoin should be logical and rational. And that can only happen by shunning ‘myths’ and ‘rumors’.
In this article, we intend to do exactly that. So that you can see BTC for what it is, and not how it appears.
Bitcoin Has No Intrinsic Value
Naysayers say that BTC doesn’t have any intrinsic value. They also say that bitcoins just ‘appear out of thin air’.
An asset or a currency derives value out of people’s faith, e.g: the INR. More the trust, the more is the value.
Contrary to misconceptions, a large section of people has faith in BTC. This is perfectly visible from the latest Edelman Trust Barometer Survey.
As per the report, 73 percent of Indians trust cryptocurrencies and blockchain technology.
60 percent say that the impact of crypto/blockchain will be positive.
Apart from this, bitcoin’s value has exponentially appreciated over the last several years. This couldn’t have happened if investors didn’t think of BTC as ‘valuable’.
Also, bitcoins don’t ‘just happen’. A process called mining creates BTC. Folks with advanced hardware compete within themselves to quickly solve complex mathematical puzzles. To know more, check out the video below:
Criminals Use BTC
Some believe that bitcoin transactions are anonymous. And that makes BTC a suitable vehicle for all sorts of illegal activities.
Bitcoin operates on a blockchain-based protocol. It is a decentralized public ledger that records all BTC transactions. What this means is that all activities are openly visible to everyone.
An alphanumeric address masks the details of transacting parties. But, everything else like the transaction value, date, time is completely accessible.
That makes bitcoin ‘pseudo-anonymous’. As opposed to ‘pro-criminal’ claims, this feature helps law-enforcement authorities in nabbing felons. See the below video to know more:
Bitcoin Was Hacked
No, that’s not true. If Bitcoin was hacked, it wouldn’t have gained the trust of millions of investors across the country.
Hacking Bitcoin is near impossible. Because of its blockchain.
A ’51 percent attack’ could help gain control of the Bitcoin network. But, going by how much the ecosystem has matured, a 51 percent attack will be a very costly proposition. How costly?
According to data, it would cost almost USD 500,000 an hour to carry it out. No hacker would shell out that kind of money. Plus the chances of breaking in are minuscule to zero.
It’s a Ponzi Scheme
Normally a Ponzi scheme has a hierarchical arrangement with a boss at the top. The person who starts it all. Investors are guaranteed fixed returns on their capital but the underlying mechanism is fraudulent.
Although Satoshi Nakamoto created Bitcoin in 2009, he remains unknown. He/She designed the network so that anyone can participate and either contribute to its growth or just invest in BTC.
No central authority controls Bitcoin. There are no ‘middlemen’ facilitating transfers. And it will continue to remain that way in the foreseeable future.
BTC Investment is Costly
A lot of people, especially in India don’t buy bitcoin because they think it’s costly. They think they have to buy one whole BTC. Going by the ongoing market rates they bow out.
Here’s the fact. Despite rumors of a ‘highly-priced investment’, anyone can buy bitcoin. Why? Because 1 BTC is divisible into 100 million parts. That’s right. Because of its divisibility, investors can buy fractions of bitcoin.
It is not at all necessary to buy 1 full BTC.
Only Technically Proficient People Can Use It
This was said about the internet and email too. Initially, nobody understood how these two technologies would be utilized in the real world. But eventually, both have become widely popular and now life is very difficult to imagine without the two.
This holds for bitcoin too. There is a learning curve involved but it’s not rocket science. We at WazirX have put together an intuitive interface in place so that using BTC becomes a seamless experience.
See the below video to know how to use the WazirX phone app in detail:
These were a few bitcoin myths, but there are many more. BTC and the cryptocurrency ecosystem is paving the way for a bright future. To become a part of this future, you need to question everything that you come across, even hard facts. Only by ‘verifying’ and not blindly trusting, you can truly contribute to Bitcoin’s growth.
Further Reading:
5 Ripple (XRP) Myths you Should Stop Believing
Frequently Asked Questions
How Much Is 1 Bitcoin Worth Today?
Check out the current price of Bitcoin on the WazirX exchange. Bitcoin's value is primarily determined by its supply and demand in the market. Other elements have an impact on its worth. Its intrinsic value can also be calculated by calculating the average marginal cost of producing a Bitcoin at any given time, based on the block reward, electricity price, mining hardware energy efficiency, and mining difficulty.
How Can I Convert Bitcoins To Cash?
Bitcoin may be converted to cash in various ways, including crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer to Peer Transactions. You may do this by using Bitcoin exchanges like WazirX. You may also sell Bitcoin for cash faster and more anonymously through a peer-to-peer marketplace.
What Is Bitcoin Used For?
Bitcoin was created as a means of sending money over the internet. The digital currency was designed to be a non-centralized alternative payment system that could be used in the same way as traditional currencies. Bitcoin is being used by an increasing number of businesses and individuals. This includes establishments such as restaurants, apartments, and law firms.
Is Bitcoin Trading Is Legal In India?
In 2020, the Supreme Court of India lifted the RBI’s restrictions on cryptocurrencies. According to the Supreme Court, the existence of Bitcoin or another cryptocurrency is unregulated but not unlawful. The verdict has greatly aided the world of digital money in the country. To put it another way, investing in Bitcoin is perfectly legal, and you may do so through various apps and traders.
How To Invest In Bitcoin?
Bitcoin may be invested in two ways: through mining or exchanges. Bitcoin mining is carried out by high-powered computers that solve challenging computational arithmetic problems that are too difficult to complete by hand and complex enough to tax even the most powerful computers. WazirX, a Bitcoin exchange, is another alternative.
Can Bitcoin Be Converted To Real Money?
Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.
What Is Meant By Bitcoin?
Bitcoin is a digital currency that was initially released in January 2009. It is based on ideas offered by Satoshi Nakamoto, a mysterious and pseudonymous figure, in a whitepaper. The name of the person or individuals who invented technology has not been revealed. Bitcoin promises lower transaction fees than other online payment systems, and unlike government-issued currencies, it is decentralized.
How To Make Bitcoin?
Bitcoin mining is not just the process of putting new Bitcoins into circulation, but it is also an essential part of the blockchain ledger's upkeep and development. It is carried out with the assistance of highly advanced computers that answer challenging computational math problems. Miners are rewarded for their efforts as auditors. They are in charge of ensuring that Bitcoin transactions are legitimate. Satoshi Nakamoto, who is the founder of Bitcoin, innovated this standard for keeping Bitcoin users ethical. Miners help to prevent the "double-spending problem" by confirming transactions.
How To Create Bitcoin Account?
Firstly, Go to the WazirX website and sign up. Then, a verification mail will be sent to you. The link sent via verification mail would be available only for a few seconds so make sure you click on the link sent to you as soon as possible, and it will verify your email address successfully. The next step is to set up security, so select the most suitable option for you. After you have set up the security, you will get a choice to either proceed further with or without completing the KYC procedure. After that, you will be directed to the Funds and Transfer page, where you could start depositing Bitcoins to your wallet. You can also deposit INR and then use it to buy Bitcoin for your WazirX Bitcoin wallet.
What Is The Meaning Of Bitcoin?
Bitcoin is a type of cryptocurrency that was first introduced in January 2009. It is invented based on the key concepts and notions presented in a whitepaper by Satoshi Nakamoto, a mysterious and pseudonymous figure. The name of the individual or people who invented technology is yet unknown. Bitcoin promises reduced transaction fees than existing online payment methods, and a decentralized authority controls it, unlike government-issued currencies.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
