It’s been more than a decade, but the world is still crazy about bitcoin. Bitcoin is nothing but a cryptocurrency. Digital currency is free from all types of governmental control. There is no financial institution to centrally control bitcoins. The concept of bitcoin is based on cryptography and peer to peer software. Generally, all the transactions made through bitcoins are recorded in a public ledger, and everyone has access to it. Today, it is possible to convert the bitcoin into cash and bring it to your bank account.
Believe it or not, the cryptocurrency market is new, and investing in it is considered a speculative investment. Still, it can be confidently said that the bitcoin or BTC, Ethereum or ETH, polygon or MATIC, Cardano or ADA etc., will show expected growth in the future. In terms of market value, Bitcoin holds a significant position. It is predicted by experts worldwide that in the coming decade, bitcoins will generate double the expected returns for investors.
If you are a new investor in bitcoin, you should learn about the following facts and myths about bitcoin. Thus, you will be able to set a clear goal for yourself while investing in cryptocurrency.
Top misconceptions and facts about bitcoin
- Anonymity with bitcoin users– There is no truth in the fact that Bitcoin users can transact without leaving any trace. Whenever they engage in any form of payment or transaction, the details of that transaction is recorded in the public ledger. Not only this, but during the bitcoin exchange service, the users also need to provide their personal details.
- Bitcoin can be used as credit cards– Bitcoin can’t be used as a globally operated credit card system. Whenever you make a transaction through bitcoin, there goes a huge fee. Also, bitcoin can not perform as quickly as a credit card.
- Way too expensive-These days, a single bitcoin will cost around 6000 dollars. It can seem a little too expensive for some people. But, they can always invest in a fraction of this bitcoin. This way, they will invest as per their budget.
- Excessive volatility– Bitcoin is not as volatile as you think. It is true that after its inception in 2009, bitcoin showed some short term volatility. But, the bitcoin market has been stable since 2014. It can be safely said today that the price index trend is back to normal for the cryptocurrency market.
- Source of illegal activities- There is a myth of absolute anonymity for bitcoin users. That is why many people think that this cryptocurrency encourages a number of illegal activities. Due to the novel status of bitcoin, so far, there is no law or rules to keep an eye on the illegitimate transactions of the digital currency. But, this doesn’t mean that bitcoins are only used for conducting illegal activities.
- Consuming too much energy- The bitcoin network does not consume as much energy as financial institutions like banks. These financial institutions consume a lot of energy daily with their staff management, security programs, back-office services etc.
- No real-world value- Earlier, people considered that bitcoin has no real-world value. But it is not true. You can make payments today with the help of bitcoins. You can send bitcoins to someone else’s wallet if necessary. All the bitcoin transactions are conducted in an open blockchain, and it leaves behind a pattern for the record of the public ledger.
- Bitcoin trading is gambling– The concept of bitcoin trading being gambling is related to the volatility of bitcoin in its initial years. But, after 2014, bitcoin has shown significant growth, and today, it can be considered a stable investment.
- Not secure- Due to the lack of legal rules on digital currency and its initial volatility, people consider bitcoins as not so secure mode of investment. But, people should know that the bitcoin network is highly secure. So, there is no ground to consider bitcoin trading as unsafe.
Now that you know all the myths and facts about bitcoin trading, it is time to invest some money in the cryptocurrency market. You can download an application and invest in cryptocurrency to facilitate your bitcoin trading for the future.