6 Bitcoin Myths That You Should Stop Believing

By July 13, 2020May 1st, 2021One Comment
bitcoin myths

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. 

Crypto and Blockchain Graph
73 Percent of Indians trust cryptocurrencies and blockchain
Impact of blockchain and Cryptocurrencies
60 percent Indians think the impact of bitcoin, crypto and 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:

How Bitcoin Works

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:

How Bitcoin Can Help Track Down Criminals

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.

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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

5 Myths About Ethereum

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