These days, Bitcoin Revolution is an intriguing and exciting topic at the same time, which has been in extreme buzz for the last few years. And bitcoin was the first-ever cryptocurrency to open doors for people to explore the other currency, learn more about the different cryptocurrencies, and begin investing, buying, selling, and trading in Bitcoins using Bitcoin Era.
But there are still a lot of people who are capable enough to invest and make large amounts of profits in this field but refuse to do so because of the lack of knowledge regarding this topic and the confusion between thebitcoin myths and facts that has clouded their decision-making capabilities in this field.
Many applications and websites have been developed and released to make a trade and other such transactions using cryptocurrencies. Still, most applications fail to provide the meaning and the correct definitions behind using these currencies and their functioning. Here are some of the bitcoin myths and factsthat you should be aware of so that you can make a wise choice as well as avoid misconceptions if any:
- Bitcoin is majorly used for criminal activities:
- This was considered to be one of the first and the significant myths regarding bitcoin usage, and people initially thought that bitcoin was majorly used in criminal activities and shady conjectures that required a hefty number of payments to be done for illegal activities because of the anonymity of bitcoin provides while making the everyday transactions.
And suppose the activities are repeated for a longer time. In that case, the algorithm wastes no time in analysing the pattern and redlining these malicious activities by eliminating the blockchains they have been done in. The wallets that are used for these activities are then rendered for identification in primary investigation purposes.
- Bitcoin usages and users are always prone to frauds and scams:
Ever since the introduction of bitcoin, people have been skeptical about investing due to the risks of being scammed and fraudulent activities performed using this form of currency.
On the other hand, bitcoin offers you a wholly secured transaction service and payment via blockchain technology, which makes it extremely difficult for the hacker or the frauds to gather intel or steal your privacy and personal information in any way.
- Bitcoin is the most volatile cryptocurrency:
The introduction of a new product in the market will always have a fluctuating sales graph because people who buy or invest are beginning to adapt to the latest commodity. It may take time as a specific set will favour it. In contrast, others may have different opinions regarding it.
And with the amount of buzz bitcoin got in the past few years, the graph has seen some ubiquitous ups and downs, which are very common for any currency that is gaining recognition along with some external factors and have been stabilized ever since after a significant recovery.
- Bitcoin will replace the credit card industries:
Indeed, bitcoin is now trusted by many companies and organizations as a prime unit ofpayments or transactions. Still, it is yet to achieve the ease and reliability that credit cards provide to people worldwide.
The feasibility that credit cards provide is yet to be achieved by bitcoin and other cryptocurrencies because specific fees go in with every transaction made via bitcoin, and it can be costly.
Additionally, the preparations and the time consumed in transactions via bitcoin are significant drawbacks compared to transactions via credit cards.
- Bitcoin Consumes way too much energy:
Research has shown that almost 40% of the cryptocurrency mining is done via using renewable energy sources, and the topic of mining new bitcoins can be very controversial, but, indeed, other companies and organizations such as the computer systems in the banking operations, and the digital gold mining services have been using more energy than bitcoin.
Apart from these, there are a lot of differentBitcoin myths and facts that have clouded some intellectual minds, which could be used to make the usage of this new technology and make it reach much higher peaks. Therefore, understanding cryptocurrency before beginning to invest and make transactions through it and being aware of all the facts and working these currencies is a highly beneficial approach for people.