One of the fastest-growing industries globally is cryptocurrency and blockchain technology, but there are many myths surrounding it that can be damaging to your business. Although many companies are adopting this new way of doing things, some people still have many questions about it.
In this article, we will dispel some of these common misconceptions focusing on how they affect you as an entrepreneur. Keep reading to learn about the myths and how to go about them. Remember to check out march madness betting to grab some fun.
Table of Contents
Myth 1: Bitcoin Isn’t Real Money
Bitcoin has been around since 2009 and was created by Satoshi Nakamoto. It’s a decentralized digital currency that uses peer-to-peer technology for transactions without central authority or intermediaries.
The value of bitcoin fluctuates based on supply and demand, so banks or governments do not regulate its price. Because of this, most countries do not recognize bitcoin as legal tender. However, more than 100 countries now accept bitcoin as payment, including Argentina, Australia, Canada, Chile, China, Japan, Mexico, Russia, South Korea, and the United States, among others.
Myth 2: Bitcoins Are Worthless
The current exchange rate of $1 is about 0.0012 BTC (bitcoin). If you bought bitcoins at their peak value of $1,200 per coin, you would currently have over $100,000 worth of bitcoin. This means that if you were to sell all your bitcoins today, you could make back almost half of what you spent.
Myth 3: You Can Only Use Bitcoin For Online Purchases
Although bitcoin is primarily used online, it can also pay for goods offline. In fact, one of the first businesses to accept bitcoin payments was Subway sandwich shop in Vancouver, BC. As of 2017, there are hundreds of brick-and-mortar stores accepting bitcoin worldwide.
Myth 4: There Is No Regulation
Bitcoins are governed by a set of rules called “protocols,” which are enforced by a network of computers known as miners. Miners verify transactions and add them to data blocks stored in a public ledger called the Blockchain. This ledger serves as proof of ownership and ensures that no double-spending occurs.
Myth 5: Transactions Are Anonymous
While it may seem like you can hide behind layers of encryption when sending bitcoin from wallet to wallet, the truth is that every transaction is recorded publicly in the Blockchain. Anyone can see who sent money to whom and when.
Myth 6: Mining Is A Scam
Mining requires computer processing power to solve complex mathematical problems. These puzzles are designed to ensure that only legitimate transactions occur. When someone solves the puzzle, they are rewarded with newly minted coins.
Myth 7: Bitcoin Will Be Replaced By Something Better
Cryptocurrencies such as bitcoin are just beginning to gain popularity. With the number of users increasing each year, other cryptocurrencies will likely appear to replace bitcoin. But don’t worry – there’s nothing wrong with bitcoin! We believe that it will continue to grow in popularity because it offers something unique compared to traditional currencies.
Myth 8: Cryptocurrencies Are a Fad
Another myth is that cryptocurrencies are a fad. Many people think they are too complicated to use and won’t last long. While we agree that some cryptocurrencies aren’t easy to understand, we disagree that they are a passing fancy. Instead, we believe they will become an integral part of our financial system.
Myth 9: I Don’t Need To Own Any Coins To Use Them
Bitcoin is a type of cryptocurrency. Just like credit cards, debit cards, and PayPal accounts, you need an account to store your bitcoins. You can choose to keep your bitcoins in a hardware wallet or software wallet. Hardware wallets are best for storing large amounts of bitcoin because they protect against hackers. Software wallets are easier to use but require internet access to send and receive funds.
Myth 10: It Takes Weeks/Months To Buy Bitcoins
You can buy bitcoins instantly using Coinbase, Circle, Bitstamp, etc. However, these exchanges take days or weeks to process your order. If you want to purchase bitcoins immediately, try to get them from legit sellers.
As much as there are myths surrounding cryptocurrencies, we hope this article helps clear up any confusion. We know that many people have questions about how cryptocurrencies work and what makes them different from fiat currency (traditional government-issued money). Hopefully, after reading through this article, you feel more informed than ever before.
What Do You Think? Do you have any myths about cryptocurrency? Let us know!