Bitcoin is digital cash. It was introduced by a person with the pseudo-name of Satoshi Nakamoto. People around the world can use bitcoin as a means for peer-to-peer value transfer.
Bitcoin was the first cryptocurrency. The person behind the launch of bitcoin is still unknown. In the early days, BTC (short for bitcoin) was worth pennies. However, today its value is skyrocketing. Many crypto traders believe that bitcoin will reach $100,000 soon. Nonetheless, there are plenty of misconceptions about bitcoin. The reason is obvious, the cryptocurrency industry is new. There is a gap in knowledge that gives rise to misconceptions. So, in this blog, we will discuss 4 common misconceptions about bitcoin.
Bitcoin is only for Making Money:
This is one of the biggest misconceptions about bitcoin. It is thought to be a source of making a profit. However, bitcoin is more than that. It is digital money. Just like fiat, you can use it for transactions, buying stuff, or paying someone for their services. Bitcoin is digital cash so you can transfer it only in the virtual space. There is no central authority issuing the money so it is unlikely that currency will ever be debased. Stay clear that bitcoin has its value that you can transfer peer to peer on a blockchain. Currently, one BTC is worth $10,740.
Bitcoin is a Replacement:
This is another misleading notion people have in their heads. Bitcoin will not make fiat obsolete. Just like we still have Newspapers despite having Television. Governments and people around the world heavily rely on paper money. It is used for paying the workforce, buying food, and for almost all essential daily transactions. Therefore, you cannot expect bitcoin to possibly take place of fiat in near future. Bitcoin is the money of its own type and is used for specific purposes. You can convert your tokens to fiat whenever you want.
It is a tool for Criminals:
This misconception about bitcoin is rooted in multiple incidents of hackers stealing bitcoin. The recent incident of the twitter hack got people saying that bitcoin is only for criminals. However, the truth is that bitcoin never itself got hacked. People were scammed into sending out their keys. None can steal bitcoin. Furthermore, bitcoin cannot be counterfeited like paper money.
In the early days of blockchain, some corrupt elements used bitcoin to stash their ill-gotten wealth. It brought a bad name for currency as well. Nonetheless, every industry in infancy has loopholes. Today, crypto exchanges like Kraken make sure that account holders are not involved in money laundering.
It is only for Tech people:
There is some sort of technicality involved in how bitcoins are mined. However, it is a false concept that bitcoin is only for geeks. You can learn the nitty-gritty of bitcoin from any website online. It doesn’t take much time for you to understand how important it is for anyone to invest in bitcoin. Additionally, the Defi industry is still evolving so as an early adopter you will have much more edge. You can keep visiting our blog to learn more about bitcoin as well.
Conclusion: Misconceptions about Bitcoin:
Bitcoin is no ‘get rich quick’ scheme. It is digital money that is controlled by a decentralized blockchain rather than a central authority. 12 years in, bitcoin is still misunderstood by many. However, as new Defi projects are introduced, one can hope that misconception will soon die out. This blog is an effort to clear some air around the concept of bitcoin.