Industry of cryptocurrency originates from Bitcoin is the main coin of the market, which has been operating for over eleven years. During this time she managed to acquire a huge number of guesses and theories that really deters people from investing in the crypt and don’t give novices even think about investing. Today we will dispel the ten most popular myths about the main cryptocurrency.
No. 10. Bitcoin is too expensive
Many people are hesitant to buy bitcoin because they believe it is too expensive. They look at the price and think that "missed my train" with profit potential. For example, today, the course of bitcoin is 7294 dollars. Of course, most people don't have that kind of money for a single investment. Especially do not quite understand the tool.
Again — you always can buy the coins part of Bitcoin. Each bitcoin consists of hundreds of millions indivisible units called Satoshi. You can purchase at least one Satoshi, that is, 0.00000001 bitcoin. Now for about $ 50 it is possible to buy more than 700 million Satoshi or bitcoin 0.007. This amount is much more real than you can afford to lose.
Don’t think you missed absolutely all the opportunities in the industry. Less than 15 percent of Americans and less than 1 percent of all people in the world own the main cryptocurrency. If its market capitalization will continue to grow and reach the level of capitalization of the gold, the value of BTC could rise at least 25 times.
Now if you invest in a crypt a hundred dollars, then in such a scenario a few years this investment could increase to $ 2,500. So it's not too late to contact her and think about buying coins.
Specify that this may not happen. Or it can happen otherwise: both pleasant and not. The projections in the niche don’t work, we already knew that.
Another fun fact: if you divide the maximum number of BTC to the entire population of Earth, each person receives only 269 thousand Satoshi. In reality this figure will be much less, because about a quarter of all produced to date, bitcoins have been lost forever.
No. 9. Bitcoin will never replace money
Bitcoin is too slow, the confirmation of transactions might take a few hours, the cryptocurrency is very inconvenient to pay for goods, you, probably, have heard about it.
Most people don’t realize that when they pay for a Cup of coffee with a credit card, the money from their account do not fall immediately to the seller. First, the payment system accepts digital debt that can stay open months after the transaction.
That is the concept of money in your account rather completely virtual concept. With the development of technologies such as the Lightning Network , the blockchain of Bitcoin can also handle relatively large flows of transactions in seconds. And over time this figure increases.
No. 8. Bitcoin isn’t safe, the exchanges are hacked all the time
The headlines about hacking into another major cryptocurrency exchanges from industry scare off anyone. However, the Bitcoin has never been hacked.
Yes, it is. The system created by Satoshi Nakamoto, safer than any Bank in the world. If BTC will be stored on your hardware wallet, even with physical access to the device, the attackers are unlikely to be able to withdraw bitcoins themselves.
Bitcoin cannot be faked: the release of new coins is carried out at strictly predefined Protocol, the schedule cannot violate absolutely no one. Bitcoin is almost impossible to “close”. Currently the network is active at least one miner, the system will continue to live.
But with exchanges is really a problem. If you store your cryptocurrencies on the marketplace, it really can lose. Centralized exchanges are yet dominated the industry, but they have a clear alternative in the form of decentralized trading platforms.
No. 7. Bitcoin will surpass other cryptocurrency
It argued that BTC was the first of its kind. Supposedly he was only the pioneer, and popularity in the future I will get some other cryptocurrency.
Bitcoin is not the very first of its kind. Before its appearance there have been attempts to create something similar — the first analogue cryptocurrency could emerge in the nineties of the previous century. But all these projects failed because of problems with centralization and security.
After Bitcoin first came into the focus of public attention, many developers began to create their own cryptocurrency. They promised that the new coins will be "better and faster" of Bitcoin. To date, no other coin has not managed to occupy a dominant place in the industry.
No. 6. Bitcoin is bad for the environment
Critics argue that with the increasing number of miners is increasing the need for network electricity. Most of it is produced using harmful for the environment power plants.
In 2019, the researchers from the University of new Mexico published a report on the impact of Bitcoin on the environment. Cryptocurrency is instrumental in the release of harmful substances into the Earth’s atmosphere.
However, Bitcoin itself is not an incentive for electricity suppliers to expand their scope — and it is very important to understand. Just the surplus previously consumed resources that would otherwise be generated in vain, including those used to power the Bitcoin network.
No. 5. Bitcoin is a bubble
In 2017 cryptocurrency in a short period of time increased by almost 20 times, reaching a historical high of 20 thousand dollars. Then almost at the same rate the price of BTC has fallen below 6 thousand dollars.
In traditional markets such sharp UPS and downs of an asset are called “bubbles”. Usually after the formation of the asset bubble for a long time cheaper and “dangles at the bottom.” Fortunately, Bitcoin has managed to win almost all their positions. Last year the coin went up by up to 14 thousand dollars before the new drop.
In a relatively small scale, these sudden price movements really do look like bubbles. In fact, Bitcoin is a very long growth phase. Ten years ago, the cryptocurrency almost worthless, but now she is ready to give thousands of dollars.
The basis of Bitcoin is the mechanism of deflation: every year for everyone who wants to buy coins there's less BTC, so the price of the cryptocurrency grows in the long term. But traditional currency can depreciate as much as necessary. Especially against the background of recent events in the world.
We will remind, recently the U.S. Federal reserve and the Central banks of Europe said about the possibilities to print an infinite number of banknotes with the aim of supporting the global economy during a pandemic coronavirus. The more conventional money is in circulation, the less becomes their value. The advantages of Bitcoin are obvious.
No. 4. The government can destroy Bitcoin
Earlier, some countries have introduced strict prohibitions in relation to the main cryptocurrency. Now these restrictions are being gradually removed.
In February 2018, it became known that the Indian government will tighten control over the circulation of cryptocurrency. The restrictions were indeed imposed, but in March 2020 Central Bank of India officially allowed cooperation between commercial banks and cryptocurrency firms.
As practice shows, the resistance to the extension of the crypt brings to the state almost no advantages. But the support industry, on the contrary, has a positive effect on the economy. For example, one of the factors of growth in Japan’s GDP in 2017 was the adoption of Bitcoin.
This is logical — a complete ban of BTC turnover in the country will only lead to the growth of the black market. But the recognition of cryptocurrency as an asset class allows the government to obtain another source of replenishment of the budget at the expense of taxes from captainvalor. That is to destroy Bitcoin is not profitable.
No. 3. Bitcoin can’t survive without the Internet
The Internet is an important component for the network of cryptocurrencies, but even without it, she will continue to exist.
The size of the transactions, Bitcoin allows you to transfer them even with the help of radio waves and satellites. Yes, you heard right, Bitcoin can be transferred via radio. All it takes is an antenna on 7 MHz and 40 m and the application JS8call.
No. 2. Bitcoins are only criminals and drug dealers
The most interesting criminals were among the first adopters of new technologies. So it was with the Internet, wire transfers and other things.
At the dawn of its history, Bitcoin actually bought many just for the sake of spending the cryptocurrency for illicit goods or services. Over time, the ecosystem has expanded, and now only 1 percent of transactions linked to illegal activities.
See also: Silk Road: what can we learn from the big story about anonymity online?
The main users of the crypts were the traders, who speculate with it on exchanges. In the industry there are large companies, hedge funds and even entire cryptocurrency banks. Moreover, very soon you will be able to spend bitcoin virtually any payment terminal in the world. This will help debit card cryptocurrency exchanges Binance.
No. 1. Bitcoins have no value
This is perhaps the main argument of critics of the cryptocurrency. It can not be used or somehow physically to use. Because of this, the real value of Bitcoin is supposed to be zero.
Following this logic, the banknote in your wallet is also not worth anything at all. When the U.S. dollar off the gold standard in 1971, money was no longer backed by gold. In fact, it allowed the Central banks to create new money out of thin air. After the abolition of the gold standard, inflation of the dollar only increased.
Do not be surprised — money is a rather relative concept. Banknote acquire their value only because of the fact that they can spend virtually anywhere in the country. They are a versatile product.
Bitcoin is not really backed by anything. However, the maximum number of coins cryptocurrency is limited, i.e. it cannot be created forever. Plus its impossible to forge, so the “fake” bitcoins don’t exist.
Bitcoin is just better money. The money that you can’t uncontrollably printed by the Central banks. Money that cannot be censored or confiscated. Money that have no boundaries and are not controlled by any government. Bitcoin gives everyone equal access and not discriminate on the basis of geographical location, age, sex or religion.
The real value of Bitcoin — financial freedom.
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