Cryptocurrencies are becoming an interesting topic for people all over the world. Of course, the most popular of them is Bitcoin. As we know, this is the first cryptocurrency ever and for its long life (since 2009) it has gone a long way. At the time of writing (March 2022), Bitcoin has a price of more than $41,000 and a market cap of $781,744,977,114.
And still, there are people believing that Bitcoin’s price isn’t based on anything, that it is way too volatile, and has no real worth.
Today we are looking at the most common myths surrounding Bitcoin and the crypto world, and we’ll see if they are actually true.
Bitcoin is a bubble
In the financial world, a bubble is an economic cycle that is characterized by unsustainable rises in market value.
Although for many, Bitcoin seems like a speculative investment, we wouldn’t call it a bubble. As we know, those types of bubbles pop at the moment investors realize the price is much higher than the actual value of the asset.
The truth is that Bitcoin has been through many price cycles, but has recovered each time, achieving new highs. According to some big investors, Bitcoin’s oscillations make a pattern often seen in younger markets. It is believed that Bitcoin will go up and down with smaller swings and longer durations until it receives some kind of relative stability. Of course, we’ll have to wait and see.
Bitcoin is useless
It is believed that Bitcoin, as well as other cryptocurrencies, has no real use or is only used for illegal activities. Well, it is not true. Bitcoin was created as a new way of payment, independent of banks or payment processors. Furthermore, it is used as an investment, against inflation.
It is not by accident that Bitcoin is called digital gold, as it is also scarce (there will only be 21 million Bitcoin). Not like gold, on the other hand, Bitcoin can be received and sent with only a few clicks.
As we know, Bitcoin transactions happen on an open blockchain, which makes it easier for authorities to track illegal activities, than it would be on the traditional financial systems.
Bitcoin has no real value
Although Bitcoin (or any cryptocurrency) is not backed up with a real physical asset, that does not mean it has no value. While Bitcoin is hard-coded, it is much more resistant to inflation, and this is a major driver of its value.
Moreover, the amount of new Bitcoin being mined is declined over time, which helps ensure that its supply is always reduced.
Bitcoin will be replaced
Bitcoin was the first digital currency to achieve success. Of course, in the last 12 years, many other cryptocurrencies have tried to take over the market, some of them more successfully than others. Anyway, none of them has succeeded in overtaking Bitcoin.
Truth is, Bitcoin is making up over 60% of the crypto market and its main advantage is its clear mission. As we already have mentioned, it was created as a decentralized and open currency. It is operated by a global community, and any change on the network must be supported by at least 51% of that community.
Of course, we don’t exclude the opportunity for a huge innovation, replacing Bitcoin, but most specialists think it would not happen anytime soon.
Bitcoin is not secure
Another common opinion is that Bitcoin transactions are not safe and secure.
The truth is the Bitcoin network has never been hacked.
Most misconceptions come from the fact that there have been attacks on businesses and services, using Bitcoin, but not the Bitcoin network itself. Besides that, Bitcoin's core protocol has worked securely since 2009.
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