Busting The Biggest Myths of Bitcoin
There are several misconceptions relatable to Bitcoin but these misconceptions have been created by non-believers of Bitcoin.
The Mother of All Myths
It is said by non-believers of Bitcoin that the Bitcoin price surge is fictional which is a “bubble” only. They are waiting to see their self-proclaimed Bitcoin bubble to burst. The argument is that Bitcoin’s value is surging continuously. A time will come when the rally will end and Bitcoin will collapse. However, as we all know, bubbles live very shortly. They usually tend to burst in a couple of seconds.
If this argument is applied to Bitcoin then obviously, it is a fallacious argument. Firstly, over the past four, your Bitcoin is gaining more and more value. However, not only Bitcoin but the entire crypto-economy is on the horizon. So the bubble is not per se Bitcoin-oriented and in fact, it applies to the entire crypto economy. If it were to burst, it could have occurred in one or two months and instead not have taken years, particularly 4 years.
Is Bitcoin Purposeless?
The second biggest Bitcoin myth is the purpose and usage of Bitcoin. People have been misguided that neither Bitcoin has any physical existence nor it has any useful serving purpose. While the argument to the extent of Bitcoin’s physical nature is correct but the latter part of the argument is totally ill-founded. Bitcoin is recognized throughout the world as an “asset” that has value and multifarious uses. It is a form of currency but an advanced version of fiat-like card money.
Thirty years ago, if you have told people that a plastic card is capable of holding cash, then nobody would have believed you. But today, the card is the cash alternate and is used worldwide and is a product of great convenience. Likewise crypto is paperless and card-less money which is an alternative to cash. There are now millions of vendors across the globe accepting Bitcoin as payment for services, sales, and purchases. You can purchase property, commodities, luxuries, clothing, vehicles, or even acquire services, etc. by paying in Bitcoin. So again the myth is not only misguided but ill-founded because it is an argument belonging to Bitcoin critics.
Not the Future King
According to many, they think that in the long run Bitcoin will lose its dominance in the crypto economy. In fact, it will be replaced by other cryptocurrencies and potentially Ethereum is said to be the future king of cryptocurrencies. Of course, it is not wrong to think that may be in the future either Ethereum or some other crypto coin might replace Bitcoin. However, so far even this argument isn’t going in the expected direction.
Bitcoin was created in 2009 while Ehtereum came into being in 2013. There is hardly a five years difference in the creation of both coins. Since 2009, Bitcoin’s value has gone up from US$ 0.001 and now it is US$ 40,000 and the highest was US$ 64,000. On the other hand, Ethereum’s initial value was US$0.075 and now it is US$ 2.192. The best value for Ethereum was US$ 4,000 plus which was recorded in May 2021.
Similarly, in terms of market capitalization, Bitcoin is trillion dollars ahead of Ethereum.
If one were to look at the progress of both cryptocurrencies it is obvious that both are leading crypto coins of the world. Both retain top positions amongst cryptocurrencies and their market capital too is unmatched with other cryptocurrencies. But when it comes to value, Bitcoin is way beyond Ethereum’s reach. Even if one were to compare the yearly growth minus the years between the creation of Bitcoin and Ethereum, still Bitcoin is leading.
Bitcoin Trading Is “Gambling”
The last major myth of Bitcoin is that many call it “gambling”. If Bitcoin is “gambling” then any type of investment too can be regarded as “gambling”. You can only estimate that the investment might be beneficial but you cannot be certain of that. Similarly, investment in Bitcoin is also no different than a normal investment. There is no denying that Bitcoin is highly speculative and volatile in nature. But that is the beauty of Bitcoin trading. You can spend US$ 1,000 and get a return of US$ 10,000 instantly. Similarly, upon spending US$ 1,000 you might get US$ 400.
In the end, whether those who had spent US$ 1,000 and got US$ 64,000 are in benefit or not? The answer is in the affirmative. Similarly, whether those who had spent US$ 1,000 and a dip came bringing down the value from 64k to 30,000 have earned any benefits or not? The answer again is yes. They have been benefitted even if there was a dip.
