5 Bitcoin Myths That Should Be Refuted

2 min reading

Even though Bitcoin has gained a great number of supporters, there are still people who repeat false information about it. Here are some typical myths which should be refuted!

Bitcoin is a financial pyramid

This particular cryptocurrency has long been accused by critics of being a financial pyramid. Even one of the economists of the largest American online loan market, Tendaya Kapfidze, used that expression while referring to it. Although these types of attacks on Bitcoin are rather common in the community of economists and politicians,

 it should be understood that this cryptocurrency is definitely not a pyramid. Bitcoin brings great vaules with it, of which the main one is that, as an electronic peer-to-peer currency, it can increase efficiency and thus reduce transaction costs.

Bitcoin is a speculative bubble

A lot of people perceive Bitcoin only as a speculative asset and because of that, people very often compare it to tulip mania, which wreaked havoc in the Netherlands between 1636 and 1637, or Dot-com internet bubble from the early 2000s.

A misunderstanding of the role Bitcoin plays leads to a situation in which this myth is becoming repeated by an increasing number of people. It is a fact is that we live in a world where people are becoming driven by greed more often, and as a consequence they do not notice essential aspects of cryptocurrencies.

 

Bitcoin is complicated to use

Although the terms such as blockchain, a cryptocurrency wallet, or a private key may be incomprehensible to laymen, they are basically nothing complicated. Transactions through the use of Bitcoin are smooth, and because of that intermediaries such as banks or other financial institutions are not needed at all!

Moreover, you do not have to know all its technical parameters to use Bitcoin on a daily basis. All you have to do is make sure that your private key is secure, nothing more. Transactions carried out in cryptocurrencies could be compared to sending emails. No one wanted to use them at first, but it turned out after some time that they are not as complicated as it might seem.

Bitcoin is both anonymous and transparent

Bitcoins operate on the so-called blockchain, which  is a kind of a public database. All transactions made with Bitcoin are saved in the chain of blocks. What's more, other users are able to track it and learn details about the balance or the date the transaction was made.

For this reason, there is no doubt that it can be assumed that no other currency has shown such a high level of transparency as Bitcoin.

Bitcoin is an enemy of ecology

People will never run out of ideas for organising an attack on Bitcoin. Some people, therefore, began to indicate that this cryptocurrency consumes huge amounts of energy, which they think has a negative impact on the environment.

In fact, Bitcoin is not as catastrophic for ecology as its opponents say. Atually, numerous studies have proved this statement to be false, including those carried out by Susanne Köhler and Massim Pizzola from the University of Aalborg in Denmark.