Bitcoin is a world-famous crypto currency about which almost everyone is hired! Today I will tell you a few absolutely stupid myths about this electronic currency!
No, bitcoin is not a bubble. He will not collapse to zero. This point has long since passed. However, pessimists certainly will not calm down and will trumpet about the bubble every time the Crypto currency will add or lose another thousand dollars. Naturally, in the future we expect correction - no asset in history has grown in a straight line, but bitcoin will not burst. He was not a bubble at $ 3,000 for a coin, nor is he at $ 17,000. Bitcoin will not be a bubble next week, when new pessimists express their "concerns."
- Bitcoin is unstable and too volotilen
For those who do not like risk, there are definitely less exciting investment options. The notion that bitcoin is volatile and needs "taming" is mistaken. A well-known expert on crypto assets, Chris Berniske, broke this stereotype, showing that bitcoin's volatility is lower than that of Twitter shares (NYSE: TWTR). Of course, on certain days the quotes soar and fall, but in general the Crypto currency is quite calm.
- Bitcoin - one of the variations of "tulipanomania"
Tulipanomania, sweeping Holland of the XVII century, reached its peak, when a bulb of a certain grade was given 4,600 florins. Since that moment, prices have only fallen. Tulips have no intrinsic value and are similar to other similar things, such as seashells and beautiful pebbles. On the other hand, bitcoins are easy to divide and carry, they can not be destroyed. In addition, bitcoins are much smaller than tulips.
- Bitcoin is used by extremists
Let's not go into long explanations, why this idea is ridiculous. Crypto currency is not responsible for the actions of a tiny group of radical people. Sometimes it is better to limit yourself to a simple analogy. Have you heard about cars? They say that they are used by bank robbers. Let's forbid them!
- Bitcoin is mainly used for illegal purposes
This statement could be fair in 2013, but now the vast majority of transactions in the bitcoin network are completely legal. Chris Berniske refers to a study whose authors conclude that the crypto currency has survived the "fall" phase in the casino and the black market and is now actively used by legal business. However, this does not stop the media from attacking bitcoin.
- Bitcoin is a financial pyramid
Specificity of the financial pyramid is that early investors earn at the expense of the late ones, until the pyramid loses stability and does not collapse. Bitcoin is absolutely transparent, its distribution and growth is not controlled by anyone. The cost of crypto currency is determined solely by demand and supply, and not by the need to reward early investors.
- Bitcoin's algorithm can be easily cracked
Crypt exchange and cloud wallets can be hacked, like any device or program connected to the Internet. However, the base code, which forms the basis of the block, can not be hacked. The bitcoin protocol was tested more often than any other program ever created. If you are worried about your coins, put them in a purse that is physically disconnected from the Internet.
- Bitcoin - this is a fleeting fad of recent years.
You know what used to be called a fad? Internet and mobile phones.
- Bitcoin Mining consumes a huge amount of electricity
This myth has been repeatedly exposed. Yes, mining consumes a significant amount of electricity - although not so much, as reported, - but every watt spent is worth it. We will not go into the technical details, but let us dwell on the facts: Mining takes a third less electricity than New Year garlands in the US. In one study, total consumption of electricity by bitcoin miners is estimated at 0.8-4.4 TWh per year. Compare this value to 138 TWh spent annually on the extraction and processing of gold, or from 650 TWh consumed by the global banking system, and bitcoin seems to be a benchmark for energy efficiency.