Some common Bitcoin misconceptions.

There are certain to be misunderstandings that people have that are common when reimagining something as fundamental to our society as money. Set the record straight by looking at a couple of them.

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Adil Kazani

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Myth #1: Bitcoin is anonymous

Many individuals believe that transactions made using Bitcoin are fully anonymous. While it is true that users may send, receive, and store bitcoins using Bitcoin wallets without providing personal information, each wallet has a specific address that is given to it by the Bitcoin network.

Even though these addresses aren't by design associated with a human person, it is frequently easy to do so. This is due to the fact that exchanges that allow transactions between the traditional banking system and cryptocurrencies are required by law to get proof of identification from their consumers. Furthermore, once an address is associated with a person's identity, anonymity is permanently gone since every Bitcoin transaction is permanently recorded on a public ledger.

So, Bitcoin truly is anonymous? Not quite. A better word to use is pseudonymous.


Myth #2: Bitcoin is a bubble

Bubbles perish permanently when they rupture. The most famous instance is Tulip Mania, a brief period of speculative bubble in which the price of a single tulip reached 10,000 guilders, or the equivalent of a home. Tulips will never again be appreciated at such a high level.

While it's true that Bitcoin has seen a lot of volatility, including numerous falls of 70% or more, when you look at a longer period of time, you can see that the cryptocurrency's basic value is continuously increasing. This is not the behavior of a bubble in the economy.

By design, bitcoin is a deflationary asset. Since there is a fixed amount of 21 million coins, of which more than 90% are currently in use, even a slight increase in demand for Bitcoin may have a significant impact on its price.

Bitcoin speculation is fueled by a variety of variables, but at its core, the cryptocurrency is a valuable asset. This rating is based on its usefulness as a worldwide method of payment that anybody may use and that can quickly settle all types of transactions.

This is the reason we are so enthusiastic about Bitcoin as a fantastic financial instrument and a reliable store of money. But given its volatility, you must have a suitably long view of Bitcoin if you're treating it as an investment.


What is Bitcoin?

Bitcoin was created in 2009 by Satoshi Nakamoto to be a “peer-to-peer electronic cash system.” (whitepaper) Today, many people use bitcoin as a store of value.

READ MORE HERE.


Myth #3: You can't spend Bitcoin in 'real life'

In the beginning, traditional financial institutions mocked and ridiculed cryptocurrencies as "magic internet money." Since then, the market valuation of Bitcoin and other cryptocurrencies has grown significantly, reaching hundreds of billions.

Cryptocurrency is gradually demonstrating its value as a lucrative medium of trade as well as a tool for financial speculators. Today, you can use cryptocurrencies to make purchases at thousands of actual brick-and-mortar stores across the globe and at even more online e-commerce stores.


Interested in Buying Bitcoin?

A Beginners Guide: How can you buy Bitcoin and other Cryptocurrencies in India?

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Myth #4: Satoshi Nakamoto controls Bitcoin

Bitcoin: A Peer-to-Peer Electronic Cash System was the title of a white paper that was submitted to a cryptography mailing group at metzdowd.com on October 31, 2008. The listed author, Satoshi Nakamoto, is an unidentified individual or organization.

Satoshi Nakamoto actively participated in the early phases of Bitcoin's creation of the Bitcoin software, but he quickly left the project and was never heard from again.


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