Bitcoin is a hot topic right now. Whether you are for or against it, there are a lot of myths surrounding digital currency. If you’re a beginner and just getting started with bitcoin trading, you must choose the right exchange platform, like Immediate Profit. This blog post will discuss some of the most common bitcoin myths and why you should ignore them.
Let’s take a look at these myths.
Bitcoin does not have value
This is one of the biggest misconceptions about Bitcoin. While it’s true that 1 BTC isn’t worth exactly what it used to be, or even half as much as it was only a few months ago, this does not mean that Bitcoin has no future value. The fact of the matter is that Bitcoins have many uses. They can be used to buy goods and services from merchants who accept them; they can be traded for other currencies and even stored away as an investment.
Thus, bitcoin will always have some inherent value so long as people accept them. This might take time because many governments worldwide are trying to figure out how to fit digital currencies into their legal framework – but again, it’s not as if Bitcoin has no value.
Bitcoin has little to no volatility
Another common myth is that Bitcoin isn’t subject to any significant volatility – but this couldn’t be further from the truth. While it does have less day-to-day volatility than gold, there is still plenty of speculation on future prices, causing wild fluctuations in its price. One day, it might be worth USD 20 per BTC, then next, it could be at $100 – only time will tell how high or low Bitcoin price will become before stabilizing.
Bitcoin can be hacked/stolen easily
While there are many stories about people losing their Bitcoins in one way or another – whether by theft, phone loss, computer loss, or even sending to the wrong address – in reality, Bitcoin is a very secure system. To start with, Bitcoins live inside something called a “wallet,” which is just a fancy way of saying that these coins have an entry on the Bitcoin network.
Bitcoin is fading
Bitcoin has always had its critics, and for many years it looked like it might be proven right. The currency failed to gain any stability against the dollar, was hit hard by the collapse of several high-profile exchanges, and struggled with slow speeds that made transactions frustratingly time-consuming. Today, however, things are very different.
Bitcoin is often described as the ‘reserve currency’ of cryptocurrency. Its prices continue to remain resilient despite severe global economic conditions, which has seen Greece struggle to remain in the Euro.
Bitcoin will replace fiat money
Bitcoin is essentially a fiat currency, and Bitcoin’s value is derived from people’s faith in it rather than some physical attribute or government decree. Like paper money and gold coins, Bitcoin derives its worth from what society believes it’s worth.
The Bottom Line
Many misconceptions about Bitcoin make people think it’s not secure enough to use, which couldn’t be further from the truth. These myths get repeated constantly because they sound like they could make sense — but when you take a moment to think about them rationally, you’ll realize that these ideas don’t hold water at all. Let’s go through these Bitcoin myths out there right now.