The world is growing quickly, and people are advancing towards various new concepts and technologies. Bitcoin and cryptocurrency are some of those revolutionary advancements. In the year 2008, Satoshi Nakamoto first coined the term bitcoin. With the motto of transferring money, bitcoin was introduced as open-source software.
With the advancement of technological aspect, Bitcoin and other forms of cryptocurrencies have started to create a buzz in financial investment sectors among the the potential investors and analysts. The enthusiastic financial investors are trying to learn more and more about it, but the market of investment is always flooded with certain truths-untruths, myths, facts, and rumors.
Read on to know further to know some general myths and facts about Bitcoin and Cryptocurrency.
Common Myths about Bitcoin and Cryptocurrency:
- Digital currencies are illegal:
This myth is as popular among people as bitcoin first became known in the black markets, and no doubt it has been incorporated by the individuals who were involved in illicit acts. But it should be analyzed that cryptocurrency was never considered illegal. The illegal activities only used to take place by the criminal-minded people and hackers in which the overall concept of cryptocurrency is never to blame anyhow.
- Cryptocurrencies are not at all safe and secure:
A number of sophisticated scams and thefts have been identified in which the main target of these acts was capturing digital currency. The wallets and other majorities of the cryptocurrency segment are the most vulnerable. This created a terrific environment among the investors that specifically arose due to the worry of losing their digital assets because of thefts and frauds. But investors should understand that crypto works on a robust blockchain network, and it cannot be easily attacked. Even so, many platforms ensure secure transactions for cryptocurrencies.
- Cryptocurrencies are fraudulent activities:
There are several rumors in the financial markets that offering bitcoin initially can lead to a scam. But active investors know it all that cryptocurrency is just like other forms of physical investment.
- Cryptocurrency doesn’t possess any value:
It has always been a matter of considering allocating digital currencies for taxation and daily transactions. This has just created a false assumption that crypto is just a trend, and it will fade away soon. But in reality, cryptocurrencies are like other types of currencies in the market and can be traded in exchange for goods and services; thus, they hold a specific value for the investors who deal in cryptocurrencies.
- Cryptocurrencies are environment friendly:
Mining operations worldwide have increased for taking off cryptocurrencies like Bitcoin. This requires huge sums of electricity and power. Thus, causing an impact on the environment. But we should keep in mind that advanced banking and financial systems incorporate a large number of power for their day-to-day operations that cost too much to the environment. To reduce mining operations, digital currencies, like bitcoin, have limited the number of tokens that can be mined by setting hard caps on the tokens.
Some Unexplored Facts about Bitcoin and Cryptocurrency:
- Limited amount of Bitcoin:
Cryptocurrency is also a natural resources like coal, gold, or petroleum. It responds in the same manner as other resources do when the demand for gold, oil, etc., increases the supply decreases. Similarly, one cannot buy unlimited crypto, and sooner or later, the supply of several bitcoins will be stopped.
- banning of cryptocurrency:
Countries like Alegria, Bangladesh, Bolivia, Cambodia, and Nepal have prohibited using cryptocurrency. Nations can just make rules and regulations, but they can’t ban crypto as anyone can easily access a crypto wallet.
- The biggest miner of Cryptocurrency is China:
China has control of around 75% of the mining chain in the world.
- The Real Creator of Cryptocurrency:
People believe that the creator of bitcoin is Satoshi Nakamoto, who introduced it in the year 2008. But there is still a belief that top tech companies – Samsung-Toshiba-Nakamichi-Motorola has created bitcoin, and the name Satoshi Nakamoto is the acronym of these tech giants.
Nowadays, a large population worldwide is participating in the world of cryptocurrency. Digital currency like Bitcoin is widely known in the financial markets and can be easily approached by secure crypto platforms like this software.