We all have that one friend or uncle who lives under a rock and is oblivious to technology. This poor guy will often say ridiculous things like Bitcoin is worthless and that it was created by criminals to help them commit organized crime. Here are 9 of the most common bitcoin myths debunked.
1. Bitcoin is anonymous
False. Bitcoin is NOT anonymous. A little bit of work is required to protect your privacy with Bitcoin. Every bitcoin transaction ever is stored on the blockchain, a publicly distributed ledger that records every transaction and every block mined. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances. Keep in mind that it is your responsibility to form good practices in order to protect your privacy.
2. Bitcoin is illegal
Bitcoin can be illegal, some governments of the world have declared that they will jail anyone caught using bitcoin. But, unless your from Saudi Arabia, Bangladesh, or Kyrgyzstan; you are most likely good to go.
Bitcoin is 100% legal in most countries including; USA, Canada, South Africa, Russia, Sweden, Turkey, Spain, UK, Netherlands, Ireland, France
3. Bitcoin is hard to buy
4. You can’t buy anything real with bitcoin
5. Bitcoin is a bubble
The Blockchain bubble is just getting started.
6. Bitcoin is not backed by anything
False. Bitcoin is backed by computing power and electricity costs. Mining Bitcoin requires a tremendous amount of energy and power, it is expensive.
7. You can’t buy anything real with bitcoin
You can use bitcoin anywhere worldwide and online.
Sites that now accept bitcoin
Comprehensive List of Sites that take bitcoin here
8. Bitcoin is ideal for criminal activities
While dark web marketplaces give Bitcoin a bad name, the technology behind bitcoin, called the blockchain is being adopted by corporations and governments around the globe.
9. Bitcoins DO NOT solve any problems that fiat currencies or gold pose
Unlike gold, bitcoins are:
- Easy to transfer
- Easy to secure
- Easy to verify
- Easy to granulate
Unlike fiat currencies, bitcoins are:
- Predictable and limited in supply
- Not controlled by a central authority (such as The United States Federal Reserve)
- Not debt-based
Unlike electronic fiat currency systems, bitcoins are:
- Potentially anonymous
- Faster to transfer
- Cheaper to transfer