The rate at which people invest in cryptocurrency nowadays, especially Bitcoin, is quite surprising. Why? Because back in 2009, when it first launched, people were reluctant to invest in it or even get the notion behind it, all because there’s always been the belief that anything that has its operation online without a physical office is always related to scams or dubious activities.
Bitcoin which is the world’s most popular cryptocurrency has been misjudged in different ways, despite this, the stock has not stopped breaking new grounds.
Unfortunately, some speculations have been making rounds about the coin that are not true. People seem to misunderstand the facts surrounding it due to a lack of total knowledge of how it works.
Fortunately for you, there’s CoinText to check out lists of legit cryptocurrencies and Bitcoin wallets you can invest in. If you wish to know about some commonly known facts about bitcoin that aren’t true, then continue reading his article.
1. Bitcoin Has No Real Life Use
Some people still hold on to the belief that bitcoin has no real-life value, and as such, it can only be used by fraudsters to carry out illegal activities. The truth is, neither of the two statements above is true.
However, research has shown that bitcoin has had a long history as a means of making financial transactions anywhere in the world, without necessarily using a bank payment processor.
As observed, Bitcoin has been on the increase and is highly popular as an inflation-resistant store just like gold. And also well-renowned investors, like (Tesla and Square) have bought the coin worth millions and billions to better manage their stocks.
Unlike Gold that has a physical value that is heavy, difficult to transport, and bulky, Bitcoin can be sent to any part of the world electronically through emails and other digital forms.
2. Replacement By Competitors
Bitcoin is a very core cryptocurrency. As the first digital money, some investors often think that Bitcoin will be replaced by other upcoming crypto stocks, but you should know that irrespective of the different coins that are coming up, Bitcoin has secured its place as one of the most valuable crypto stocks in the market.
It has up to 60% round value in the crypto market, it also has decentralizing and open features, that is to say, competitors are not welcome to try as it is operated globally in different branches without a specific location.
3. Thought Of It As A Ponzi Scheme
Whenever some people hear about cryptocurrency they often think it is a Ponzi scheme, that is, a platform where people invest with hopes that the amount of money invested will be doubled as the outcome, as the case may be, without knowing that it is all fallacies. Which may even be scammers that disguise and use such mediums to carry out illicit monetary activities.
People invest in such schemes hoping to get a greater amount of what they invested and it may sometimes fluctuate in value which will result in loss to some investors.
Bitcoin is not a Ponzi scheme, its value increases as people seek to have it, and the bitcoin blockchain technology means that no group or party can alter or manipulate it to follow a particular pattern.
4. Energy Consumption
Although the fact that Bitcoins consume energy is not out of place, because a good number of computers are always on standby to ensure the smooth mining and security of the network of this coin.
However, this shouldn’t be a major hindrance in the mining market because other companies and financial institutions also consume energy not different from mining industries.
Additionally, studies from the University of Cambridge show that 40% of cryptocurrency mining is a renewable source of energy.
5. Bitcoin Hacks
There are claims that some Bitcoin investors have lost their money due to security issues, which gives the public the impression that Bitcoin can be hacked. Although it has an intrinsic feature, it is impracticable that the blockchain network could be altered.
Whenever a Bitcoin theft occurs, knowing that blockchain cannot be altered, the cause is usually due to how it was kept, which may lead to the wallets being hacked. This gives hackers access to your coins.
6. Crashing After 21 Million Coin are Mined
People think Bitcoin has a specific amount of token it will release and that the total token space is 21 million. And also believe that the last coin will be sold in 2041.
However, no one can predict what will happen at that time but miners will continue to make a profit from transaction fees. If Bitcoin mining stops it exposes it to vulnerability.
There will always be different misconceptions about crypto stock, it doesn’t dispute the fact that people are earning massively from it and it is thoroughly legitimate.