Bitcoin is rightly said to bring the same revolution to banks that emails have brought to the postal industry. Bitcoin is the most popular and secure cryptocurrency. Various companies are investing in it and accept them as payments. But many shops do not accept Bitcoin as payment yet, while some countries have decided to ban it. The reason is fear, raised because of myths created by opponents of Bitcoin.
There are various such myths. Firstly, they say that Bitcoin is just a theoretical concept and is not practical. It is not so as the network of Bitcoin deals with a lot of transactions daily. Another myth is that Bitcoin kills energy. But, this does not mean that Bitcoin is not a good idea because energy can be conserved if used rightly. They also say that world governments will end Bitcoin. It is also not correct for all countries because the countries of the west accept it wholeheartedly. There is also a myth that Bitcoin will harm other cryptocurrencies. But, various other cryptocurrencies like Ethereum and Litecoin are prospering and do not affect the price of Bitcoin.
But the myth that had the most negative impact on people is that Bitcoin is so volatile that it can never be a store of value. The opponents of Bitcoin repeatedly say that Bitcoin can never be a store of value or a currency. This belief about Bitcoin’s volatility is wrong. The common public generally believes whatever the politicians, bankers, or economists widely say without questioning.
Recommended to read: Why is Bitcoin Valuable? Here are 5 main reasons!
The problem with us is that we don’t question stuff related to money that generates an economic crisis. Correct decision-making regarding Bitcoin during these challenging times. Now, let us look into this matter more closely.
First of all, we must understand that we must not readily believe whatever is told about Bitcoin but rather research about it ourselves. Bitcoin is said to be very volatile, according to various people. Satoshi Nakamoto had created Bitcoin along with some policies. Firstly, the quantity of Bitcoins is limited to 21 million units. This amount is fixed and known to all. Secondly, new Bitcoins are created when a transaction block is correctly mined. Since Bitcoin was launched, approximately a new Bitcoin has emerged every ten minutes. So, contrary to the myth, the Bitcoin deals have been relatively stable since they were introduced.
So, what gave birth to this myth, and what is the reality? The reality is that Bitcoin is not volatile, but its price is. So, when people talk about Bitcoin’s volatility, they generally mean its price. Many people do not understand this. Bitcoin has reached a large market capitalization in a short duration. Though its market is still tiny, it will grow in the years to come.
Another fact is that Bitcoin is at people’s service all day, i.e., 24 hours. Nothing can obstruct the rise and fall of the price of Bitcoin. Also, Bitcoin is the only free market. Users can find their price for Bitcoins as well. So, Bitcoin is more of a quality than a glitch.
Also, read Bitcoin and Cryptocurrencies: What lies in the Future?
You can benefit from the volatility of Bitcoin. Before you roll your eyes to think, we are here to tell you how. You can do so by investing in it. Yes, by investing in Bitcoin, you will earn rewards, and the volatility in the price of Bitcoin will no longer bother you. On top of that, as the Bitcoin market expands, the volatility in its price will lessen. It will happen very soon because its market is broadening quickly. Hence, Bitcoin is an equally profitable store of value to gold.
Now, we know that though the price of Bitcoin is volatile, it is a very profitable store of value. The opponents of Bitcoin often ignore points like detachability, flexibility, distinguishability, non-confiscatable, and increasing scarcity. These features make it a superior store of value to gold.
So, we now know that Bitcoin’s volatility is nothing but a myth. The network of Bitcoin is relatively stable. What is volatile is its price. This volatility is just because it is new. Hence, people must open up their minds and realise the truth about Bitcoin. For more updates on Bitcoin, stay tuned to https://bitcoin-profit.cloud.
