Bitcoins have been around since 2009, so they are not exactly new. But, because less people know about it, and the intricacies of cryptocurrency, there seems to exist numerous myths or misleading facts about bitcoins, in the market. The presence of myths, for any financial or new area of investment, is not beneficial. It not only raises questions, but raises suspicions in a person’s mind, and takes away investors. In this article, we discuss the top 6 myths about bitcoins, and debunk them:
1. Bitcoin is illegal
Most people think bitcoin is illegal, because it is not legal tender. Every country’s legal tender is its fiat currency. For US, it is dollars. The coins and paper bills are usually minted by the government. But that does not make bitcoins illegal. Most countries have accepted it and ratified it as digital or virtual currency. It might fall into some grey areas, but in most of the countries around the world, it is not illegal a currency.
2. Bitcoin allows you to evade taxes
As there are no middlemen involved, no paperwork to send and receive money, most people think you can use it to evade taxes. But, that is not so. All transactions made are recorded in a public ledger. Also, most countries make it essential for you to file your bitcoin transactions at the end of a financial year. If they pass a certain limit decided by your country or region, you’re liable to pay taxes.
3. It is bad for the environment and propels climate change
As bitcoin necessary depends upon mining for its creation, survival and sustenance, most experts against bitcoins believe that they’re not good for the economy as well as the environment. They rely on computational power, which in turn, relies on a lot of electricity. If we move to renewable sources of energy for producing electricity, this problem is resolved at once, not only for bitcoin, but for entire countries, where fossil fuels cause pollution and severe climate change. Also, it must be important to remember in this regard, most cryptocurrencies, including bitcoins, have particular limits set upon them being mined. After the last cryptocurrency is mined in 2141, there’ll be no more mining.
4. It is nothing more than a Ponzi scheme
Since bitcoin entered the popular market, it has been times and again accused of being a Ponzi scheme. It is not a pyramid scheme, which helps you to make money, on the basis of who enters after you. Very renowned global economists defend bitcoins, and say that it is not a Ponzi scheme. To call it one, is to disregard the potential it has to, revolutionize our economies, our lives and our societies. This electronic currency, if used properly, can enhance efficiency of our global economies, as well as reduce transactional costs.
5. Bitcoin is not secure
Numerous people believe that blockchain is not safe, and to suggest evidence based insight, they point towards the several times that bitcoin has been hacked. But, to debunk this myth is the easiest, as bitcoin has never really been hacked, in its entire history, since the times of its inception. It is a secure and open-source software, which the developer community continues to improve, verify and ratify. What you must however be concerned with is the safety of bitcoin trading platforms.
You should not confuse the safety of bitcoin trading platforms with bitcoins, as they are two separate things. Choosing a good bitcoin trading platform needs a lot of research which you should not compromise on. If you’re a beginner, and you’re looking for an auto-trader, the provider you can settle for is the top auto trader in the world. Bitcoin Union is one of the most recommended platforms, which is not only safe, but helps you earn millions. They show you live profit results, and their auto trading is based on unique needs, and precision that your trading needs. You’re not presented with a general set of views, or trading insights. Its algorithm researches well, and gets back to you with results that are hundred percent accurate, and bring about results.
6. It is complicated to use
The last myth this article would like to bring to your attention is the complication it has, in being used. It might seem complicated to people because people do not understand it. As it is based on a public or private cryptographic key system, without a centralizing authority, people think it is very hard for common people to use. But considering the technological advancements, there are numerous tools and software that help and aid you in using bitcoin. You can have access to online wallets, proper trading advice, recommendations from trading pools and groups you’re a part of. If you’re a beginner, it might look overwhelming at first, but with the right help, you’d be able to understand bitcoin almost immediately!