Several myths and rumors have tried their best to dissuade bitcoin diehards, and potential bitcoin diehards, to quit investing in bitcoin. The mischaracterization of bitcoin can keep people from taking advantage of bitcoin and cryptocurrency. Because of this, a complete analysis of cryptocurrency is rendered impossible.
But, we will try our hand at it as we myth-bust some common bitcoin myths in myth-busting common bitcoin misconceptions.
Bitcoin Is Not Energy Efficient
While bitcoin's carbon footprint is a problem in need of a dire solution, it does not, in any way, mean that bitcoin is a bad idea. While naysayers will target bitcoin with whatever they can, most of them will not know what they are talking about. Just so you know, it also costs a lot of energy running FedEx, TikTok, and even the U.S. Department of Defense. But people have their sights set on Bitcoin only, blatantly refusing to look at all of Bitcoin's positives.
Bitcoin's Volatility Is a Drawback
Bitcoins are volatile, sure, but so was gold in the 70's period. Several people had invested in gold and had later learned how much of a loss that had incurred. However, after going downhill for about a 60 percent of its actual value, diminishing in its worth for many decades, the very gold that had incurred major losses on people's wallets came back twice as strong, increasing ten times in ten years. Moral of this story? Sometimes, the more volatile an investment is, the higher is its return. If you are a financial daredevil, then you should opt for bitcoin in all of its volatility. Light-hearted investors should, hence, look elsewhere.
Bitcoins Won't Survive Governmental Remedy
Not all countries are committing crypto-genocide.
While countries like Russia, Belarus, and Nigeria certainly are planning to completely ban the use of bitcoins, incurring legal and financial rectification, Canada, the States, and pretty much a lot of the West is very open and inclusive of bitcoin users and bitcoin usage. What is more, is that a course on cryptocurrencies was recently launched and taught at MIT. Now, that's a big plus. So, not all governments plan to take bitcoin down forever.
Bitcoin Is Bubble Money
It is natural for people to say that Bitcoin is entering into bubble territory. Most things that see the kind of success bitcoins have often gone even higher, much like the proverbial bubble the bubble cycle is named after. But bubbles burst at a point and the same is being said about bitcoin – that it will one day begin a downward path and never recover, causing insurmountable losses and withdrawals. However, this is not the case as the use of bitcoin is growing increasingly popular and it will one day help stabilize erratic economies.
When we compare the dollar with bitcoin, we see more convenience both physical and monetary with bitcoin. However, traditional money will not, in the foreseeable future, be completely replaced by Bitcoin. It is wise, though, to acquaint yourselves with the workings of Bitcoin now only, before it is too late.