Busting Myths About BitCoins
Cryptocurrencies are such a fragile topic right now that any media report just doesn’t stay put. It manages to generate four more news articles creating issues for the cryptocurrency and its users.
There are so many myths associated with cryptocurrencies and Bitcoin especially that it is merely an endless ocean and fighting is terrible, but not impossible.
These rumors/ myths are about so many things like:
It’s legal status (or not)
How it is a scam
How it's so volatile that it cannot simply stay put and the money is invested towards a loss
How only hackers and other top-notch criminals use bitcoins
Well, sadly people that too educated ones believe it! No matter how much of a learned person we are, when it comes to money and especially investment in something which is this new, things always go out of hand a little. So, as a community of crypto developers and investors, it is our prime duty to bust these myths and educate our fellow humans about what right and what wrong and how to be mindful investors.
BitCoin is too Expensive
Well, this is a fix, and the answer to it is Yes, and no. Bitcoin, when was in its prime during 2017 December, was at an all-time high of $20,000 making people averse to buying it since it is not just expensive, it’s crazy expensive; however, the situation remained the same even when it came down to $7000 in March 2018. This is why because of many reasons. But what is to study and understood here is that it’s not just about having an entire BitCoin always, one can see still it in pieces or Satoshis. For example, if we cannot have the gold bar in full, we can always have small gold coins!
The math is simple here,
There are 21,000,000 BTC and for each of them there are 21,000,000,000 mBTC. For them, there are 21,000,000,000,000 bIts and eventually 2,100,000,000,00,000 Satoshis the smallest possible BTC unit ie, 1 satoshi is 0.003 BTC.
Since bitcoins run on a demand-supply model, if you are not able to buy 1 BTC, but 1 or many more Satoshi for as low as $126 each!
Bitcoins is under a Monopoly
Many people think that more than 40% of the bitcoins are controlled by just a few thousand people. This is for sure wrong and a blatant lie. There are 21 million bitcoins available right now which can be divided like this- the Bitcoin wallets are many. So one person can have 100 wallets, or one wallet can have 100 bitcoins.
The millionaire wallet holders ate Bitfinex and Bittrex, while there are several other people who can have hundreds of bitcoins with them. Again this depends on the availability and the demand.
Most wallets have this ability to create a new address for themselves whenever a transaction is made to them, i.e., 1 bitcoin will be divided by five addresses and will be available in 0.2 BTC sizes. And the best part (or the worst) is that you can never know if the bitcoins are of the same person or not.
Bitcoins are used only for wrong purposes.
Well, many people think that bitcoin is the currency of criminals. Why? Because they are decentralized and untraceable giving them the needed look at being wrong.
What happens is that every transaction in bitcoin is public and it is maintained in a virtual ledger accessible by all on that network.
Even if the trade is done using Bitcoin it will be of no use as it has to be eventually liquidated and for this to happen, people have to go through the procedure of KYC and AML which puts them under the screen of the law enforcement agencies, and thus they get caught!Â
Bitcoin is too volatile to trust
Well, yes! The fluctuations are too high and especially in these times, but it does not mean that they cannot be trusted or invested in. It simply means that the user needs to have faith and has to go slow with them and play safe. If hurriedly invested in they can rob you of your money, and if played smart, you can be bitcoin millionaires too!
