Every new technology has been criticised at least once after it was launched. The same goes for Bitcoin and cryptocurrency. Since early after its release, many criticisms and obligations have been made against this digital currency technology. With its sudden rise in popularity, this criticism has increased, and many myths have been going around regarding them.
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These myths can be very confusing, especially for a beginner, as it will put them in doubt as to whether to invest in it or not. Bitcoin and cryptocurrency being a source of investment are why there are lots of myths going around about them.
Many known and proven facts about how real and rewarding these digital currencies are. With the right research and measures, one can easily choose a cryptocurrency exchange and start investing. Platforms like Bitcoin Era have simplified the investmentin cryptocurrencies
Myths of Bitcoin and Crypto
- Bitcoin is a bubble and will eventually pop when investors realize that the prices of Bitcoin and other cryptocurrencies are higher than the market value. Many people had compared Bitcoin with Tulip Crisi
- Some also say that there is no real value for Bitcoin and cryptocurrency. They are hard corded to be scared and hence are resistant to inflation.
- Critics believe that Bitcoin will be replaced by one of the many rising digital currencies. It will not be on the top for long and will eventually fall when a new competitor comes to the market.
- Some say that Bitcoin and its investment are like that gambling and are not a good source of investment. They believe that the risk is too high and the chance of profit depends on luck.
- One of the major myths about Bitcoin and Crypto is that people believe that they are not secure and will vandalize our personal information and details.
- Being an energy-intensive process, people believe that Bitcoin and cryptocurrency are bad for the environment and cause damage to the environment.
- Another myth about Bitcoin and cryptocurrency is that they are a scam. The profit and sales gained through the Digital currency seem too surreal to trust, and so many people claim it to be a scam.
- Bitcoin and cryptocurrency are real money is another myth. They are digital currencies and are used only for digital purposes. The profits gained through them cannot be taken out in the white paper.
- People also think that Bitcoin and cryptocurrencies will replace real money.
Facts of Bitcoin and Crypto
- Cryptos are highly volatile. They are prone to changes at any time, and their value may change even in a matter of seconds.
- Bitcoin and other digital currencies lack any sort of fundamental backing. They are unrelated to any fundamental or economic issues in any way.
- The infrastructure of these digital currencies is Blockchain technology. They are the source through which every transaction and trading takes place.
- Crypto mining plays a vital role as it is through this those complex mathematical equations are done using high-powered computers. They verify and enlarge the Blockchain for transactions and payments regularly.
- In cryptocurrencies, decentralization is the key factor.
- The value of Bitcoin is depended on the supply, since there is a limited number of Bitcoin
- The founder of Bitcoin is unknown. Its creator is an anonymous being.
- There are over 9,500 cryptocurrencies. Bitcoin is just one of them, and you can be taxed for them. In some countries, you are asked to pay a certain percentage tax from the gain or profit.
- While many counties are embracing and openly using cryptocurrencies, there are some countries where digital currencies are banned.
- The wallet you get for holding your coins and funds cannot be lost. You need to keep it safe for you to stay in the running of cryptocurrencies.
As it was said earlier, there are a lot of myths about Bitcoin and cryptocurrency. Here, only a few, but the most common, have been listed. If you wish to start investing in these digital currencies, you will hear a lot of such myths when you start. However, make yourself known of the facts and be wise.