The hottest thing that breaks the internet in the current digital era is BITCOIN. Countless investors are ready to invest in cryptocurrency since it has become the first choice to have safe investment. BITCOIN market is volatile. Therefore many people found lots of misconceptions about cryptocurrency. This sometimes holds newcomers to avoid taking risks, as they are not well-versed with the market.
If this is your case, this post can help you understand the real truth behind the cryptocurrency market. So, without further ado, let us dive in the pool and find the bitcoin myths and facts that you need to stop believing right now.
List of Bitcoin Myths and Facts:
Myth 1 – Bitcoin users have complete anonymity
There is indeed some anonymity with Bitcoin users, but it is not 100%. When bitcoin users enter in the payment method, they leave a trail in their blockchain. Thus, Bitcoin users are not allowed to breach the laws.
Fact – When Bitcoin user is about to use payment services they are asked to share their personal information, including name, phone number, etc., for their records. So, there is some severity you can track the details but not whole.
Myth 2 – Bitcoin is like credit cards
Yet another major misconception prevailing in the market is that Bitcoin will be the next credit card. But in fact, Bitcoin transactions are not easy as credit cards. Moreover, Bitcoin charges a significant amount of transaction fees that no one wants to afford.
Fact – Bitcoins will not be the credit card, as they contain lots of risks, especially there is technological feasibility to replace the easy credit card system.
Myth 3 – Bitcoins are expensive
When you search on Google about the price of Bitcoin, it will charge up to $6,000 or more. Thus, it seems expensive and unable to be afforded by a commoner. Also, it comes with a high exchange value in which you can buy a fraction of BTCs.
Fact – Bitcoin is expensive until you are not able to buy it. In case, if you don’t have much capital to invest in, getting started with a small bitcoin,i.e.Satoshi can be a good choice option. Thus, if you want to trade on Bitcoins-Era.io – go to site with Satoshi, you could earn some profits.
Myth 4 – Bitcoin is highly volatile
Bitcoin has become volatile in the past few years since it was stable in 2014. To check the value of BTC, you can read current and past facts of cryptocurrency. With that said, you can know the price of BTC is gradually increased after the fourth quarter of the year 2017.
Fact – It is, no doubt, at times, Bitcoin becomes volatile, however, such factors depend on certain market conditions. Every commodity sees a sudden fall and rise in the market. However, the high-low trend is recovering and will return to constant value.
Myth 5 – Bitcoin encourages illegal activities
Many people believe Bitcoin encourages illegal activities, but it is not true. It is the part associated with the anonymity required in blockchain to make the transactions. Also, it helps people in the black market to engage in illegal activities.
Fact – The truth is the illegal activities done by fiat currency. However, the problem is not about the mode of currency you are using; it is the nature of currency and how you use it. Like other rules on currency, there should be laws on cryptocurrency/fiat currency. When the laws are enforced you will indeed find things will be changed.
Myth 6 – Bitcoin requires lots of energy
As compared to the traditional financial institutions, Bitcoin relatively consumes less energy, and thus, it significantly encourages working compatibility. Let us check this with an example. A financial institution includes several processes for delivering the services, such as staff management, transportation charges, back-office services, and security.
Fact – If we check the amount of energy consumed by the bitcoin network, it takes only a few minutes to complete the process, then total energy consumption of financial institutions. The Bitcoin industry consumes less fraction of energy.
So, these were some of the myths of bitcoin trading that you needed to know as a cryptocurrency trader. At the end of the day, make sure that you don’t give with the flow of others’ words and take wise decision based on your own extensive research. Happy investing!