Misconceptions about bitcoin are widespread. Misinformation and lack of trust has reduced bitcoin to a fringe currency. In fact it is the most transparent and secure digital asset in the history. Following are some of the most common misconceptions about bitcoin. Learn what average people think about bitcoin? And how wrong they are?
Bitcoin is a Ponzi Scheme
There are hundreds of ponzi schemes in the guise of new cryptocurrencies and ICOs. But terming bitcoin a ponzi scheme is outright ignorance.
Bitcoin is peer-to-peer, it is completely open-source and most important of all, no single authority controls the bitcoin network. With this level of transparency and consensus based protocols, how can it be a ponzi scheme? Terming bitcoin fraud is equivalent to terming Linux a shady operating system, which is ludicrous.
For information’s sake, OneCoin is a ponzi scheme, and many other new ICOs but not bitcoin.
Bitcoin is Illegal
Except a handful of countries, bitcoin is not legally accepted. It is true, but lack of cryptocurrency regulations is worth investigating. It is a universal fact that governments hate transparency. And when it comes to economy and transfer of value, governments love dead opacity coupled with complete authority.
What bitcoin does is that it creates a system of transparent and open economic activity with no room for corruption in the system itself. Governments fear bitcoin, because it gives power back to the people. Traditional banking is favorable to governments and bitcoin provides a secure mechanism that has the ability to make old banking useless.
Governments cannot stop bitcoin network, making it illegal is the least they can do.
Bitcoin is a Bubble
Cryptocurrency trading has done more damage than good to bitcoin’s reputation as a decentralized digital payment system. Traditional traders hate bitcoin’s price volatility. They fail to grasp the technical jargon behind blockchain technology. And as result they resort to over simplification by terming bitcoin an inflated asset.
Bitcoin trading has become a trend of late. And talking against a popular trend surely gives you cheap publicity. The analysis that terms bitcoin a bubble is clearly flawed at several levels. It may just not reach the most optimistic price predictions but forecasting its doom without giving any credible reasons is totally unrealistic.
Bitcoin has no Real Value
Some say, when you can’t touch an asset its not real. Bitcoin is a virtual currency in a sense that you cannot touch it like traditional currency bills. But, terming it unreal is not fair. It is equivalent to saying no to computers, yet we love computers even in traditional banking.
Cryptocurrency takes the concept of value to the next level where computer encryption and peer-to-peer collaboration provides the most effective way to store and transfer value instantly.
Banking cards that use flawed computer technology are widely accepted even by traditionalists. But hesitation in accepting a perfected system for the transfer of value is totally strange.
People attribute value to assets and the current value of bitcoin is not some inflated price. It is completely fair to give more value to something that is in demand, unique and valuable.
Governments will ban Bitcoin
You cannot ban something that is already banned for 9 years now. The only way forward is to accept the reality. Embracing the cryptocurrency technology with balanced regulations in place seems a sane approach.
As discussed above, no government can stop the bitcoin network from operating. It will continue to operate until the people that believe in the first cryptocurreny decide to do otherwise. People control bitcoin and it will continue to make governments uncomfortable.
Bitcoin is one of the least understood concepts out there. And it is important to remove these misconceptions about bitcoin.