● Beginner Crypto Basics

The 5 biggest Bitcoin myths

5 minutes 6 months ago

Bitcoin is known across the world for being the most popular cryptocurrency available. As it is the original digital coin, there are a few myths and misconceptions that commonly surround Bitcoin. If you’re hesitant to take the plunge, in this article we have debunked the biggest Bitcoin myths - without exposing you to risk - so you can make an informed decision.

Myth 1: The Bitcoin bubble

A typical bubble has an unsustainable market value that will eventually pop once investors realise the price of the asset far exceeds its actual value. While a crash is inevitable for many investments that promise huge returns, there is not much to suggest this will be the case with Bitcoin. Over its lifespan, Bitcoin has experienced many price cycles that consisted of highs and lows; this has allowed the crypto space to grow and go on to reach new heights. Experts are predicting that eventually Bitcoin may settle into stability after longer durations between surging and receding; but until that occurs, its current oscillations provide no reason to be concerned regarding its overall longevity.

Myth 2: Bitcoin can’t be used in the real world

Some onlookers will often dismiss and categorise any activity involving the exchange of Bitcoin.

However, these sentiments are not based on facts. In truth, Bitcoin only cuts out the need for a payment processor or bank, and the digital currency has long been used to make direct payments across the globe. When you make a paypass transaction, or purchase something on Amazon via PayPal, you are not using physical currency. Also, as with any currency - digital or not - Bitcoin has the potential to be misused for illegal activity. However, compared to a traditional financial system, it is easier to identify and track illegal activity as all Bitcoin transactions occur on an open blockchain.

Myth 3: A competitor will replace Bitcoin

Bitcoin was one of the first digital currencies to emerge, and also the first one that really took off. While countless cryptocurrencies have been established over the last decade, none have enjoyed the same success as Bitcoin. It is still the most popular and most valuable cryptocurrency, and its mission to remain a decentralised, open currency makes it appealing for both new and seasoned investors alike. It’s a possibility that a rival cryptocurrency could emerge - but with Bitcoin making up approximately 60% of the crypto market, it is unlikely to happen anytime soon.

Myth 4: Bitcoin is prone to attacks

Bitcoin has an open-source code, which has been widely criticised for its lack of security. Computer scientists and security experts across the globe have cited numerous issues surrounding probable third party attacks, data breaches and flaws with mining. But the fact is and still remains, the Bitcoin network has never experienced a single attack. It was the first digital currency to eliminate double spending and allow a trustless system between peer to peer exchanges. If you’re looking for one of the safest digital currencies on the market, consider this: Bitcoin transactions cannot be reversed, and the coin has experienced 99.9% uptime since its inception, meaning that the chances of an attack are almost nil.

Myth 5: Bitcoin is not safe and reliable to use.

While Bitcoin like any other assets carries risk, dismissing its safety and reliability outright oversimplifies what is a very complex and innovative piece of technology. Its decentralised nature leads to a higher level of security. By ustilising this method it secures itself from centralised control or manipulation. The Blockchain also helps to ensure transparency by requiring a consensus among network participants for any changes. Its use of cryptography also helps to ensure security. By employing advanced cryptographic techniques, Bitcoin's proof-of-work mechanism contributes to the integrity of the blockchain. Bitcoins historical performance also speaks for its reliability. Despite times of market volatility, Bitcoin has shown itself to be resilient. If looked at over its lifetime, Bitcoin can be seen to have followed a consistent upward trajectory which suggests it is around for the long term.

Ready to buy Bitcoin in Australia?

CoinSpot makes it easy to buy and sell cryptocurrency in Australia. Check out our guide on how to buy Bitcoin (BTC) in Australia and sign up to CoinSpot today to get started.

Share this article

Further Reading

● Advanced Current Events
Bitcoin ETF: What is it and What does it Mean?
What is an ETF? And what does a Bitcoin ETF mean for the industry as a whole? In this article we answer these questions and address the possible future it brings.
10 minutes 5 months ago
● Advanced RMIT
How do you spot a crypto scam?
In this article we talk about how to identify and avoid common crypto scams and keep yourself, and your coins safe.
10 minutes 5 months ago
● Advanced Crypto Basics
Blockchain Explained: Its Mechanism and Applications
Blockchain is a shared, immutable ledger that facilitates the process of recording transparent transactions and tracking assets in a business network. In this article we explain how it works, and what it can be applied to.
8 minutes 8 months ago

Join 2.5 million other users
and start earning!