Bitcoin is one of the widely used cryptocurrencies, it has its estimated value in trillions. In 2009, it came into existence and after that, the value of Bitcoin increased. Many investors have their theory related to investment in Bitcoin.
Bitcoin has also gained a strong user base in all these years. But with the rise in the value of Bitcoin, many myths are also spreading. As there is thousands of information all over the internet related to Bitcoin. Most of them are not fact-based and somehow a myth. In this article, we are here to bust 5 myths about Bitcoin, which are majorly popular in this bitcoin revolution app.
Myth 1: cryptocurrency is the most reliable payment method :
According to some market Gurus, cryptocurrencies can replace other traditional payment methods. But as a matter of fact, all these currencies have been in circulation for a long period. It’s very difficult for Bitcoin to completely replace them. Cryptocurrencies offer safe methods for transactions and trading but we cannot say that they are scam-free.
Bitcoins run on a special technology called BlockChain technology that makes it safe and transparent for users. But in reality, there are some cases of fraud and scams related to Bitcoins. Bitcoins are safer than other traditional payment methods as well as Internet banking but cannot be termed as completely safe. You need to take precautions while using Bitcoins too.
Myth 2: Bitcoins are a reliable and stable investment.
Bitcoin has been in the financial game since 2009, it has gone through many ups and downs. Many investors, Business owners, and even Banks are investing in Bitcoins and also getting good investment returns. In the meantime we must understand this, the rise in the value of Bitcoin is mainly because the world considers it this valuable. Bitcoins do not have any set value, it depends on how we treat them.
Even a single tweet from influential people can increase or decrease the value of Bitcoins. In the past, we have seen instances where Bitcoin lost control over the market for a while but later its value increased many times.
Myth 3: Bitcoins have no long future and will be replaced by Meme coins soon.
This rumour started taking around after the fall in Bitcoin value in 2021. At the same time, Dogecoin attracted users to invest in the same. Bitcoin is the oldest and most reliable cryptocurrency whereas Dogecoin or other meme coins runs on the “greater fool” theory. It means investing in Dogecoin is more of a trend, not a stable investment. On the other hand, Bitcoin is limited in number but has a great influence on the market.
Due to the significant advantages of Bitcoins like fast transactions with no/low fee, safe and transparent transactions reduce the chances for replacement of Bitcoins any time soon. Meme coins too enjoy a good user base but don’t have commercial value like Bitcoin.
Myth 4: Bitcoins and other cryptocurrencies will replace traditional currencies.
Cryptocurrencies have a lot of advantages over traditional currencies but in no way can completely replace them. One of the main reasons for this is the lack of authority for cryptocurrencies whereas other currencies are regulated by the legal law and Government of their countries. Secondly, Even if Bitcoin gives huge returns on investment, it couldn’t be trusted as the primary currency because it runs mainly on the people’s faith.
In weaker times people will choose traditional currencies over Bitcoins because of reliability. All these currencies have gained our trust over time and proved to be highly useful. However, Bitcoins are just a decade old and some past experiences don’t allow people to completely rely on Bitcoins or other cryptocurrencies.
Also, read 10 Mind-blowing Bitcoin Facts
Myth 5: Bitcoins don’t have the potential to grow strong in the market and will fade away.
There is always a hot debate around the reliability of Bitcoins. Some very traditional investors and economists like Warren Buffet consider Bitcoin nothing more than a Fad. On the other hand, entrepreneurs like Elon Musk promote it as a new-age currency. Everyone has their own set of opinions, suggestions, and understanding about cryptocurrencies.
But the impact that Bitcoins have for now will not let go of these anywhere. Bitcoins and other cryptocurrencies will rule the market for a long time and people should grasp this fact as soon as possible.