Bitcoin has been used as a mode of payment by traders and investors for over a decade. However, some of the public is still unsure how to adapt to it in their daily trades. Ignorance and certain myths might be why people can still not trust the payment mode.
The negative sentiments about using Bitcoin have created multiple misconceptions in the crypto industry.
This guide article will address some myths and misconceptions about Bitcoin among traders and whether they are true.
Common Myths and Misconceptions About Bitcoin
Some common public myths about Bitcoins are explained below.
Bitcoin Trading Requires Huge Amount of Money
There is a common misconception that one needs to own a lot of money to execute Bitcoin trade in the market. However, this is not the case. An average person can also buy and sell Bitcoins as Bitcoin is a divisible entity. One can trade Bitcoin according to its feasibility in small fractions, too.
Bitcoin as a Dirty Currency
Mining Bitcoin operates on Proof of Work consensus. This makes it a highly energy-consuming activity. The anti-crypto people hype it as a dirty currency that might pollute the surroundings.
However, the Bitcoin developers address this issue as Bitcoin is now adapting to green energy, and the Proof of Work consensus is now consuming renewable energy resources, causing less harmful impacts on the environment.
Bitcoin Trading Requires Computer Expertise
Many believe they require technical expertise to conduct Bitcoin transactions and trades. However, this is not the case, and users need to own a mobile phone and a safe internet connection. With time and effort, everyone can learn Bitcoin trade and become better at it with time.
Another common myth about Bitcoin is that it keeps the transaction details anonymous, thus enabling users to get involved in illegal activities. No one can deny the fact that illicit activities do occur in the crypto industry; however, every crypto transaction is not false.
The wallet addresses are public, and anyone can access them; the network only conceals the identity of the owner. Moreover, the data on the blockchain cannot be manipulated; therefore, no one can interfere with it.
Bitcoin as a Ponzi Scheme
Many investors think of Bitcoin as a Ponzi scheme that promises large outputs and profits to the traders and provides nothing. It attracts new traders in the market to become rich within no time.
However, the actual traders know that the case is different. Every trade involves ups and downs, and similar is the case with Bitcoin. There are equal chances of losses as of earning profits.
Bitcoin is an Unreliable Currency
Traders also believe that Bitcoin is not a safe mode of payment as it is readily available for hacking. However, this is not true, as the Bitcoin blockchain contains several nodes that record the data separately, thus making it more reliable.
Bitcoin as a Bubble
Many investors misguide the ordinary people about Bitcoin as a bubble that might lose importance at any time and lead the traders to heavy losses.
There is nothing such a case as Bitcoin is still in the limelight after over a decade of its inception. The crypto market volatility is a genuine issue, but highs and lows keep interchanging accordingly.
Bitcoin Lacks Intrinsic Value
A few developers think Bitcoin is of no major utility in the market and can only be used for specific purposes. However, it is integrated with many currencies and draws value from it.
Bitcoin Trading Characterized as Gambling
Many traders think that crypto assets are used for gambling purposes. However, Bitcoin is now treated as an entity similar to bonds and stocks. Traders analyze the market situations and earn profit using different techniques.
Traders are commonly adopting Bitcoin in their daily trade activities. However, a little misguidance and ignorance might create misconceptions in their minds that can be eliminated through proper training.