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Although Bitcoin becomes more and more mainstream all the time, it seems that there are still a lot of misconceptions about it. And for it to really reach its full potential, these myths need to be dispelled.
It has definitely come a long way from being just something some enthusiasts were trading amongst themselves. Nowadays, you can buy Bitcoins with Paypal and credit cards to use for just about anything you can imagine.
There are so many ways it can benefit the average person so it pays to set the record straight.
In this article, we will go over some of the myths that just won’t die when it comes to Bitcoin.
In This Post:
1 – It is too volatile
It’s no secret that Bitcoin and other cryptocurrencies took a major dive at the end of 2017. So, those that sold right away in 2018 took a loss if they bought late in the boom.
Those that held onto their Bitcoins are happy they did as it rebounded nicely. It never got to the level it had during that hyper growth, but patience is key when investing in any currency. It takes courage to hold on or HODL as some people say. But since Bitcoin is still growing, if you can stay fearless you can see some nice gains even now.
Besides, most investments still don’t come near what those gains are for Bitcoin even at the moment. It might be too risky for some, but it is not that much different than some stocks.
2 – Only drug dealers or crooks need it
Since there is a greater level of anonymity associated with cryptocurrencies, it seems like it could be exploited by some bad actors. The reality is that even Interpol has said they haven’t seen any evidence that there are terrorists funding their operations.
There are far more Know Your Customer (KYC) rules in place to avoid this even with Bitcoin. And there is always some trace that investigators can follow if there is some illegal activity.
You don’t have to be a criminal to want to use Bitcoin as it has a lot of benefits. It is easy to use, costs less than some other payment methods and can be used in any country in the world. Those are just a few uses the average person can take advantage of.
3 – It’s a fake currency as it is not backed by anything
What backs the US dollar? The Euro? The Pound? If you think it’s gold, then you would be wrong. The gold standard has not been in effect in decades. The only thing giving fiat currency their value is trust. And the way things are headed, they may lose that trust one day.
Money is simply an IOU that you are confident will be taken in exchange for a good or service. The ironic thing is that the trustless system of the blockchain and cryptocurrencies is what gives the value because there is more trust there.