4 Myths About Bitcoin

Aug, 07   -   No Comments   -   Candice

Bitcoin is a type of cryptocurrency; that means that it is a digital currency that is secure and not subject to any one government (or any government at all, in fact). Many people have chosen to invest in bitcoin because not only has the price risen considerably over the past few years, but also it seems as though bitcoin and other cryptocurrencies are going to be the future of transactions. Bitcoin can be confusing to those who have only just discovered it, and there are many myths circulating about it. We’ve debunked the biggest ones here.

Bitcoin Is Too Expensive To Buy

If you want to buy BTC, you may be put off by the idea that it is just too expensive at this point. It’s true that the price has risen massively, and it does cost more than it did right at the start, but there are some important points to note if you are interested in investing. Firstly, the price is a lot lower than it has been as well, so there are dips and peaks in pricing; you’ll need to study the market to get the best deal. Secondly, you don’t have to buy one bitcoin; you can buy a fraction of one. This is exactly the same as gold. You don’t have to buy an entire gold bar; you can just buy a coin. So it is more affordable than many people think.

Bitcoin Is Too Volatile To Invest In

We’re not denying that bitcoin is volatile. One look at its history and it is easy to see that the price has risen and fallen hugely, often in the space of just a few hours. However, that shouldn’t necessarily put you off from investing. In fact, if you buy when the price is low, you will more easily be able to make a profit if you sell when the price is higher. Even if the price doesn’t rise for a long time, there is no reason why you would be forced to sell. If you are looking for a quick profit, however, then investing is probably not the way to go about it. Instead, you can wait it out.

Bitcoin Is Bad For The Environment

Due to it being an entirely digital process, environmentalists are concerned that bitcoin uses too much electricity to keep its servers running. However, bitcoin miners are constantly looking for cheaper ways to pay for their electricity, and since there is no one country which holds bitcoin, they can use electricity from any country that has a surplus, making it a lot less expensive, and even utilizing renewable energy. Compared to the manufacturing costs of banknotes and coins, bitcoin is at a similar level.

Bitcoin Is Used For Money Laundering

It is unlikely that bitcoin is being used for money laundering or other illegal activities because every transaction is made public, even if the users are private. It is much more likely to be used for everyday transactions such as buying vacations, gift cards, or downloading music and movies.