You have surely heard of the Bitcoin cryptocurrency or other cryptocurrencies and maybe you think you know enough to understand its operation, but perhaps you also know about a number of myths and false information that could put you in doubt about the system and think that everything is a farce. In fact, there are risks as well as their benefits. It is logical to have doubts, which are sometimes necessary, new doubts, new concerns and new myths have arisen about this cryptocurrency, about its operation and obviously about its future. In this article we will try to explain or dispel some myths about Bitcoin and have more advanced knowledge about the cryptocurrency in question.
Some of the most popular myths
Bitcoin is a digital currency and is considered the most booming in the world of cryptocurrency, as well as being the most used, however, it does not escape the speculations of those who still cling to traditional banking and still do not accept the change that Fintech companies have given towards this new payment method based on digital currency. Let’s see some myths to clarify which are true and which are not.
Bitcoin is the only cryptocurrency that exists
False. While it is true that Bitcoin was the first cryptocurrency to be created, based on blockchain technology, there are currently around 1500 digital currencies, many countries are creating their own virtual currencies to be used in the world of cryptoeconomics.
Bitcoin is useless for not having support
Phalluses The fact that there are no physical coins or gold in the vaults of any bank that supports it, does not mean that it is useless, the value of Bitcoin is given by users who certify it, as they make more transactions with it, the more it increases the confidence that the public has and, therefore, increases its value.
It is considered that Bitcoin the ilegal
False. Bitcoin is totally legal both in the United States and in many countries, since in March of 2013, the US Financial Crimes Control Network. issued and issued a new series of guidelines on the use of this digital currency in which it was determined, that any user of the virtual currency does not constitute a financial services company (MSB), under the regulations of FinCEN, and therefore, it is not obliged to register with state tax bodies, nor to submit reports and maintain regulations and registries, which means, in a few words, that people do not require anyone’s permission to use Bitcoin.
Bitcoin is completely safe
False. Unfortunately, Bitcoin is not totally secure, nor is it so protected, since Bitcoin can be stolen and shows what happened with Mt.Gox, in which some 24 thousand users are affected by the theft of approximately 850,000 BTC, which represented the 7% of the Bitcoins circulating at that time. It means that while there are human beings involved, nothing will be perfect, however, efforts to protect the blockchain from attacks of 51% are increasing and security levels have been increasing more and more.
It is impossible to track Bitcoin
False. Bitcoin is totally traceable by its design. The financial transactions that are carried out are facilitated by the software that executes them through an open code through the Internet. Therefore, we assume that none of this is private. In such a way, that every transaction that is made, even for the illegal purchase of drugs, is registered in the Blockchain.info.
Bitcoin is not scalable
False. Scalability refers to the ability to remain in time in perfect working order due to the exponential increase in users, as it is now operating, it is only processing between 7 and 27 transactions per second, which is insignificant in comparison with the payments made by Visa, for example, is why it is said that Bitcoin is not scalable.
In this regard, it is convenient to clarify that Bitcoin has had problems in that sense, but that does not mean that it is not scalable, since there are currently numerous initiatives in development to attack this problem, these initiatives are designed to increase scalability. In fact, some initiatives are SegWit that has already been implemented.
Bitcoin is very volatile
True. It is likely that if it is, the value of Bitcoin has recently suffered large fluctuations. It is good to remember that last June 2011, when this cryptocurrency increased its value in 40 opportunities, going from 0.75 dollars to 30 dollars. Then it stabilized around 5 dollars beginning in 2012. That represented the period of greatest variation or volatility in the history of the currency, however, did not have much impact on users, as Bitcoin still had not achieved so much boom.
What do you think about this topic? Have you clarified some of the myths about bitcoin?
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