Over the years there have been a lot of myths about Bitcoin making rounds on the internet. Most of them have actually affected newbies since they give the wrong information about Bitcoin and it is at times hard to feed the investor with the right kind of information later.
Below are the Bitcoin Myths which have made their way into the top 7 in 2018.
1. Bitcoin users are made to be anonymous
The term “anonymous currency” is mostly associated with Bitcoin and especially in the dark web where almost all cryptocurrencies are referred to as such. Bitcoin is given this name since it was the very first among cryptocurrencies.
However, the name anonymous in this case is misplaced and it should be “pseudonymous”. Pseudonymous means that it has several pseudo names whose origin can be traced.
Bitcoin holders are normally assigned to different Bitcoin wallet addresses whose owners can be identified. Contrary to many other cryptocurrencies, Bitcoin transactions are usually displayed on a public ledger. So the public can easily go through the transactions.
2. Bitcoin users are above the Law
Most people view Bitcoin as such, especially since it is a decentralized cryptocurrency. They think that being decentralized and not being regulated from a central location means no regulation at all. This could seem so because it is know as a safe haven for drug dealers, especially in its early days. But that is wrong!
Even if it is decentralized, Bitcoin is used within any region or country which means that users must adhere to those rules. Even if Bitcoin’s technology is seen to be always ahead of the stipulated laws, we should keep in mind that every new technology always trigger an update of the existing laws and Bitcoin has not been left out.
3. There are physical Bitcoin coins somewhere
This may sound laughable, but it is not. Most Bitcoin users think that the famous Bitcoin pictures which are seen on the internet represent a physical coin of Bitcoin. People think that there are Bitcoin coins which are normally kept somewhere.
This idea is normally exaggerated by terms like Bitcoin ATMs normally referred to as BTMs and the also the Bitcoin wallets. People think that the BTMs give out physical Bitcoin coins while the Bitcoin wallets are for storing physical Bitcoin coin.
But the truth of the matter is that Bitcoin is only a blockchain network. A program code with a digital (not physical) coin denoted as BTC. Therefore, there are no tangible Bitcoin coins.
4. The name of the Bitcoin Founder was called Satoshi Nakamoto
Most posts referrer to the founder of Bitcoin as Satoshi Nakamoto and people end up thinking that that was the real name of the person who came up with Bitcoin. Actually, in 2014, there is an author who wrote a post on the Newsweek magazine purporting to follow up and unearthed the real man behind Bitcoin. The author had found a man by the name Satoshi Nakamoto and he had thought that he was the real person; only to be let down after a thorough scrutiny.
Satoshi Nakamoto has been just a pseudo name that was used to conceal the actual developer of Bitcoin; it was the name of the developer. To date the developer remains unknown since the name was successfully hidden to the public.
5. Bitcoin is just another type of currency
Actually, most people believe that Bitcoin is just a type of currency like the US Dollar. People only relate Bitcoin to the market charts they see of it.
But on the contrary, Bitcoin includes a whole transaction network; the blockchain network where users use a token referred to as Bitcoin (BTC) to transact. The Bitcoin (BTC) is just a means of getting/paying for the services in THE Bitcoin network.
6. Bitcoin is a scam
Some people fear that Bitcoin developers are just collecting money then after they have collected enough the scheme will collapse. People actually fear that it is just a Ponzi scheme.
However, Bitcoin is not a scam nor a Ponzi scheme considering its 9+ year track record. Again, there are many other cryptocurrencies which have come up as a result of Bitcoin and big companies are partnering with them in a bid to make their services better. This offers some proof that Bitcoin is genuine. Of course, price movements remain a different story, and the prices are what can disappoint investors by declining the way they are not expected to.
7. It is the most insecure cryptocurrency
Bitcoin has seen some of the worst hacks in the cryptocurrency world. It has seen most of the hacking that has happened and people end up thinking that it is not secure at all.
But since cryptocurrencies are digital assets, they are surely prone to hacking. It all depends on the security measures that the development team has put in place.