It’s a currency that has seemingly taken the world by storm, but in and amongst all of the hype about bitcoin are some huge misconceptions.
In other words, for every wonder story that you read, a boatload of inaccurate information is published which really distorts the currency. In fact, in a lot of cases, it puts many people off investing in it.
Following on from this, we’ve put together this post. Today’s aim is to take a look at some of the classic myths that surround bitcoin, and highlight why they are generally wrong and just shouldn’t be believed.
Myth #1 – Bitcoin can’t be used
This is perhaps one of the more surprising uses, but you only have to look at bitcoin dice websites like BetKing, to see how it has slowly but surely reached the gambling market.
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Let’s put this one to bed as a matter of urgency. Sure, most of the stories paint Bitcoin as something of a trading platform and a way to work money, but it is becoming accepted in more and more stores who are looking to take advantage of it.
Some ecommerce stores have jumped on the bandwagon, while if you look hard enough you’ll even see Bitcoin accepted at some bricks and mortars shops. Sure, it’s hardly a natural Visa alternative at the moment, but when you consider that trading or betting with bitcoins is also becoming commonplace the scope of this currency should not be understated.
Myth #2 – Bitcoin mining hurts the environment
This is an interesting one and in truth, it’s easy to see why people believe this about Bitcoin. There have been so many stories around the world about warehouses which are full to the brim of supercomputers which sole purpose is to generate bitcoins. This in itself suggests that the currency is going to hurt the environment substantially.
However, when you start to delve into the topic further it becomes clear that at least relatively speaking the damage isn’t bad at all.
For example, production of fiat currencies consumes more energy than bitcoins. Additionally, if you were to look at completely separate industries, such as printing, the energy costs are actually very low with bitcoin.
Myth #3 – Bitcoin is a Ponzi scheme
Once again, this is one of the more interesting myths to arise from bitcoin. It’s largely occurred due to a lack of understanding about the currency, so let’s address the misconception from the start.
A Ponzi scheme is one in which new investors are constantly required to pay any existing investors who have signed up. As well as this, strictly speaking, a scheme of such ilk requires a founder who needs to persuade the early investors to pledge their money.
Well, if we look into Bitcoin in detail, it’s clear that neither of these requirements is satisfied. While it’s most certainly true that the bitcoin network is worth more when more people use it, this is completely different to saying that it must have existing users to pay off the early adopters. Such a statement is completely untrue and again, is merely related to a lack of understanding about the whole policy.