These are the Bitcoin Myths and Misconceptions that you should know before investing in Bitcoin Cryptocurrency…
Let’s start with Legendary Bitcoin Intro…
Nowadays you might be heard the word ‘Bitcoin‘ a lot because it is the most trendy and profitable thing which generates a lot of money, so that’s why people are getting mad about Bitcoin.
What is Bitcoin?
If you don’t know what is a Bitcoin, so here is the simple explanation. Bitcoin is a Cryptocurrency (not visible physically), decentralized digital currency and worldwide payment system. In 2009 Satoshi Nakamoto introduced and Mined very first Bitcoin, Read the Full info at Wikipedia. Today’s Bitcoin value 9,46,095.97 Indian Rupee.
The Bitcoin protocol specifies that the reward for adding a block will be halved every 210,000 blocks (approximately every four years). Eventually, the reward will decrease to zero & the limit of 21 million Bitcoins, As per today’s record 12,446,725 (31/dec/2017) Bitcoins are Mined, when the 21 millionth Bitcoin is minted, the plates automatically self-destruct.
Okay, Here are the Bitcoin myths and misconceptions that you should know before investing in Bitcoin Cryptocurrency.
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1. Buy an Entire Bitcoin (Bitcoin Myths)
The First myth, which is really surprising that People still think that they have to buy an entire Bitcoin. When the price going so high people like, “well I can’t even afford it why would i buy it” without realizing you can divide Bitcoin up and buy part of it, you can go down to the eighth decimal place (0.00000001 BTC) which means you can divide Bitcoin down to the one hundred million which is called a Satoshi, which is based on the creator of Bitcoin it’s named after him.
so even though you can’t really buy that low of an amount because it would be far less than even a penny, so you have to buy a minimum amount on the exchanges you don’t have to buy an entire one you can buy as little or as much as you want.
2. Bitcoin is Anonymous (Bitcoin Myths)
The Bitcoin is not totally anonymous because every Bitcoin transaction is recorded on to the blockchain. A ledger that records everyone’s balances, so even though there’s no name attached to each wallet address, but you could still possibly figure out what wallet belongs to what people depending on things, like a person bought Bitcoin on an exchange and then sent it to their personal wallet and use that wallet to buy something.
If the government spend their enough resources, they could just go to that exchange and can easily track the transaction. If you buy something at a store that accepts Bitcoins then obviously that store knows where that address was and who owns it. There are some things you can do to be tracked and there are bad peoples who have been tracked down because they didn’t really know that you can actually somehow be tracked with Bitcoin in some cases.
3. Bitcoin is Instant (Bitcoin Myths)
Bitcoin requires you to pay a fee which kind of queues it up into a pool of transactions and Miners put your transaction into the blockchain if your fee is high. Then its confirmed and blocks are supposed to be mined about every ten minutes. so that means you could potentially wait about ten minutes or more if your fee is really low and there’s a lot of people in front of you. so you will have to wait for that transaction to get into the blockchain.
Exchanges that accept Bitcoin will require multiple confirmations. so depending on how many confirmations a company will require before they consider it final, like if it’s six then you could potentially have to wait an hour before it’s absolutely final.
Bitcoin is gonna still be faster than others depending on the fees you’re willing to pay. When this system working correctly it’s going to be the ‘fastest way’. There are upcoming features like ‘lightning Network’ which will actually make Bitcoin basically instant so you could use it to buy things at a store or something, but that is not happening right now it’s little ways off.
4. Bitcoin need too much computing power!
Bitcoin doesn’t need that amount of computing power, The amount of computing power required called the difficulty scales, with the amount of computing power added to the whole hash pull the entire Bitcoin network and the reason difficulty goes up is because people choose to buy new mining hardware or use their GPU and then the difficulty of what is required to mine a Bitcoin goes up as a result of that, it’s not the other way that you need to add more mining power to make Bitcoin work.
It’s that Bitcoin works because it accommodates however much mining power you’re willing to add if there was only one guy with one GPU who wanted to run the entire Bitcoin network and that’s all there was it would still work but of course then if you’re the only one mining Bitcoin you’re getting a lot of money there’s gonna be a lot of people coming in and then they’re gonna be adding more power and it will adjust accordingly.
so, it will never get to the point where Bitcoin doesn’t have enough computing power or electricity, because that will just be the point where it’s too expensive to buy new mining hardware so there’s not going to be anyone new coming in or if it is really expensive then the miners will quit and the half power will go down and then it will adjust and it’ll keep mining at one block per 10 minutes and that’s constant.
5. Bitcoin is Worthless (Bitcoin Myths)
Bitcoin is worthless because it’s not backed by anything and you could go on all day debating this. We used to have the gold standard which agreed that one dollar will be worth whatever amount of gold but we don’t even do that anymore, one dollar is just worth a dollar it’s backed by the full trust in the United States government but it’s based on trust at the end of the day, if the government shut down, then that money is going to be worthless but the same idea is with Bitcoin.
It is worth money because everyone agrees that it’s worth money. I mean even if you look at gold you say well gold has intrinsic value, you can use it for computer parts and stuff but you can use a lot of things for computer parts you’re not gonna have to pay that much if people weren’t using it to store value.
It might be better to have money that is worth money because everyone in the world agrees it has value instead of one government saying it has no value. I don’t know you can think about that.
6. Bitcoin is the only Cryptocurrency
Bitcoin is the only cryptocurrency! This is something a lot of people who vaguely know about Bitcoin, but there’s actually a lot of different cryptocurrencies, I think there’s up to a thousand at this point, most of them are garbage they’re worthless and never will be worth anything but there are a few that are pretty popular.
There is a ‘Litecoin (LTC)’, Ethereum (ETH)’ which is technically a token, it’s basically a software platform literally it’s not meant to be used for money and then there are lots of other projects that have their own coins for different purposes so it’s not just like Bitcoins the only one and all these other ones are trying to compete to be used as the world currency.
Other really popular ones like ‘Ripple’ which has a team that is trying to go for banks and be used with banks to transfer money between these banks instead of having to use the ancient archaic systems they’re using now, there’s no way to tell which of these will be successful and which won’t but, it’s good to know that Bitcoin is not the only game in town and we have different cryptocurrencies and tokens that are trying to do other things that Bitcoin isn’t necessarily trying to do.
7. Bitcoin is pointless (Bitcoin Myths)
Bitcoin is pointless, because there’s really no reason to use it over regular money, what’s the point, it’s not even better but there are very specific reasons that you might not have thought of, it’s relatively easy to transfer Bitcoin around the world, much easier than using a bank. If you want to do a regular ACH transfer that’s going to take three to five business days, again super slow Bitcoin is relatively instant compared to that.
Here’s another really attractive feature about Bitcoin is, it has a finite supply, there are only 21 million Bitcoins that will ever exist in the world and that’s nice because it’s not like the government money where they can print trillions and trillions of dollars. You don’t have to worry about Bitcoin, now there are lots of different smaller aspects of Bitcoin that make it different from regular money. Those reasons are enough to realize maybe Bitcoin isn’t as basic and pointless as you think now.
8. Bitcoin Trading is Easy (Bitcoin Myths)
A lot of people think that getting profits in Bitcoin trading is easy, But That’s not true, because Bitcoin is crashed several times and yeah every time up, until now it’s gone up but there’s no guarantee that it’ll keep going up, so you should never invest more than you’re willing to lose.
certainly don’t take out loans like some people do, yeah a lot of people took out loans years ago and they’re making a lot of money but it’s a stupid move, no matter what way you look at it and if you do put a lot of money you might be thinking now “oh well I’m gonna wait until the long term, I’m not even going to sell it“.
but what happens if you need an emergency fund something comes up that you would have used that money but in the meantime it crashed and you were thinking “oh well I’ll just wait till it goes back up“, but you need the money now and then you’re kind of screwed. so don’t put in more than you’re going to need and more than you’re willing to lose at any given time.
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