The virtual community is being fed with a lot of false information about anything and everything under the sun. As soon as false information are spread online, many are made to believe in misconceptions and unproven facts. False, incentivized product reviews are everywhere causing significant drops in sales for certain online businesses. Bitcoin is not exempted from being a victim of these misconceptions and false information.
Here are 5 of the worst misconceptions about Bitcoin:
- Bitcoin is a pyramiding scheme.
Bitcoin is peer-to-peer based. Unlike pyramiding scams, it does not have an authoritative body that promises investors of a guaranteed, too-good-to-be-true profit. There is no evidence or basis for the claim that it is a pyramiding scheme. Moreover, Bitcoin has proven itself many times in the market. Being at the top spot in the cryptocurrency market shows that it is not some kind of joke.
- Bitcoin is not useful.
Bitcoin is a relatively new platform (it started in 2009) and so it can be understood that some are still skeptical about its usefulness. The fact that Bitcoin can be used internationally, even by people who do not have connections whatsoever with Banking networks, proves that it is indeed a useful tool to transfer money from different corners of the globe.
- Bitcoin mining has some ethical and environmental issues.
Just because it’s called “mining” does not necessarily mean it is detrimental to the environment. There had been claims that Bitcoin is using too much energy to complete every transaction. This is not at all true. The amount of energy used for other industries such as printing is more environmentally detrimental because it requires tremendous amounts of energy.
- Bitcoin has no value.
Whoever said Bitcoin has no value is probably keeping his mouth shut now because of the success this virtual currency is celebrating. Trading with Bitcoin actually gives any currency its global value. Japan has been using this platform for enterprise solutions and they see so much potential in this tool because of its ability to give value to the Japanese currency, Yen.
- Bitcoin tolerates fraud and other criminal transactions online.
It is the people and not the online platform that take advantage of other people’s weaknesses when it comes to online transactions. Although it cannot be denied that there may be some instances of fraud using this tool, Bitcoin is not tolerating any of it. The presence of highly skilled hackers cannot be avoided.
Bitcoin sees to it that transactions are traced for the benefit of the users. Also, the management and developers of Bitcoin are finding means and ways to improve their services, security platforms, and policies.
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