Most Common Facts and Myths about Bitcoin
Today’s market is filled with lots of cryptocurrencies. Some of them have become the most prevalent decentralized digital form of currencies in the whole world. The form of currency has turned out so huge that it might take over the world of currencies one day. In recent times, the crypto world has experienced exponential growth and plunges. It allows simultaneous user transactions and is traded for products and services just like other commodities all over the world.
Bitcoin, the digital cryptocurrency is the most famous amongst them that had been created to act as a form of transaction. Introduced in 2009, the anonymous crypto was awarded to the blockchain miners. It eradicates the need for third-party involvement in between transactions.
The great features of Bitcoin have made it far more reach to the people than any other cryptocurrency because of its high valuation. Cryptocurrency investment has become the new trading interest among investors. Though, it has pros and cons based on the terms and market value changes of the crypto. With its popularity, Bitcoin has also received many competitors among more than 18,000 cryptocurrencies that have been ever created.
To know more, you can access the link quantum-ai.trading to get a wider view of the field of cryptocurrency and Bitcoin. Here are the prevalent truths and myths among the people regarding Bitcoin.
First, we will discuss the myths that were created about bitcoin so that, we can understand the truths behind them further.
- There is misinformation among the people that Bitcoin is used to convert their unfair (black money) possession into transparent money.
- It is believed that the Bitcoin blockchain was formed anonymously, and the creator is not known. Thou, it is partially a myth and question of argument till now.
- Another misconception is that Bitcoin is available in unlimited quantities and can be mined easily. However, this is a myth and the maximum number of Bitcoins available is quite limited.
- Bitcoin is addressed to grow exponentially and provide a visible outcome to the investors, and it has been proved wrong looking at the uncertain market value of the cryptocurrency. It is volatile and works like any other currency.
- The authenticity of Bitcoin is always questioned. In contrast, it is as transparent as any other transaction. For any Bitcoin transaction, the registered address stores the currency. It is entitled to be as futile as any other currency running in the world today.
- The number of Bitcoins is not unlimited. It has a limit of 21 million. About 80% of Bitcoins are already mined. After mining the left 20% further mining will not be possible.
- There is no valid proof about the creator of Bitcoin. In 2009, the ‘then believed’ creator of Bitcoin escaped off the internet and never showed back. But, bitcoins are generated and linked to a certain address and pursue the owner’s history to some extent. Bitcoins are trackable to their place of origin.
- In the past years, Bitcoin has managed to pursue being the top choice of investors to trade.
- The private key that is generated in the bitcoin exchange platform is your only path to access the Bitcoin you have bought.
- Bitcoin is declared as the official currency in the micronation of Liberland.
- Only a supercomputer can generate a cryptocurrency. Mining is an expensive process in terms of money, electricity, and time. The mining of one Bitcoin takes around 60 terawatt-hours of electricity.
- Cryptocurrency has been legalized in many countries, including Thailand, Iran, and India. However, they are heavily tax levied.
- The word ‘Bitcoin’ holds a different meaning when the first letter ‘B’ is changed to upper or lower case. The upper case ‘B’ in Bitcoin assures the storage of information about the transactions, whereas the lower case ‘b’ in the Bitcoin denotes that the currency has been used in the transaction.
- While being accepted by many countries, it is also banned in many other countries. Countries like Iceland and Bangladesh have put a major ban on the transaction of Bitcoins.
There are many widespread thoughts perceived in the market regarding Bitcoin. However, it has not affected the investment in Bitcoin in the last few years. People are still positive about its future scope. You can get a clear idea of the truths and myths about Bitcoin with the above-given information.