Bitcoin was the first cryptocurrency created that developed a serious debate about the world economy’s future; although other cryptocurrency implementation projects may have been developed before bitcoin, this was the first to achieve international positioning and significance.
The cryptographic project was taken by many as a joke in its beginnings, the main financial institutions and large investment funds disparaged the bitcoin phenomenon for years, although it is difficult to determine if they did it out of ignorance or because of the simple interest that it did not arise as a new inexpensive option. The point is that there were many allegations that were made against cryptocurrencies, the first of them: that it was a currency designed to finance terrorists and international drug trafficking.
The empty and nonsensical allegation struck a chord in a group of people who echoed this statement; the truth is that if bitcoin were really an economic ecosystem created for that purpose, the same could be argued about the dollar, for example, a currency that traditionally was used for decades to finance criminal operations. Bitcoin and other cryptocurrencies do not favor this type of activity more or less, black markets and illegal activities have always existed, and any asset of value can be used for better or for worse; in the case of bitcoin, it is true that certain criminal groups have used it, but once again, the same has also happened with the dollar, the euro, and any other important and well-priced currency.
The second most widespread lie about cryptocurrencies is that they are a kind of financial pyramid; some have come to compare bitcoin with financial scam systems, which is absolutely false. The economic systems based on cryptography have nothing to do with financial pyramids or this type of business; the only purpose of cryptocurrencies is to serve as a value exchange system, to promote greater economic freedom in society, without the harmful interference that Governments often exert on economies by manipulating national currencies to fund populist policies.
And the third lie has to do with the support that exists behind fiat currencies and bitcoin. Many argue that the dollar is backed by gold or even talk about the support of the federal government of the United States; which does not stop being simply just a promise, because the dollar, like the rest of national currencies, depends on the sustainability of their governments, but they are not exempt from being strongly devalued or even controlled by the governments, as for example happened in Argentina in the year 2001, in the famous “corralito.”
Bitcoin, unlike fiat currencies, is backed by a chain of blocks and by its own users, who carry out open-book transactions with absolute transparency through a mathematical formula that prevents (in the case of bitcoin) the uncontrolled printing of money.
Most of the arguments launched against cryptocurrencies are pronounced by the same people who manage the federal reserves of nations, the emissaries of large banks that maintain their businesses in FIAT currencies, and a large group of people who are not really aware of the operation of cryptocurrencies and only issue opinions based on ignorance.
The truth is that cryptography came not to leave, it is getting stronger and stronger, and in the medium or long term, we will have a new economic system based on blockchains and not on state manipulation.
What do you think about this topic? Which Fake News would you add to the list?
Suppose you want more information on this topic. In that case, you can subscribe to our newsletter and have free access to the report entitled blockchain technology applications and their relationship with decentralized systems.
Image by vjkombajn via Pixabay.com under Creative Commons license.