Bitcoin is the oldest and original cryptocurrency that came into existence in 2009. After bitcoin, many digital currencies came into existence, and they have a total value of more than 2 trillion dollars. The increase in the price of this cryptocurrency earlier resulted in tens of thousands of bitcoin investors becoming a millionaire. However, there is no doubt that bitcoin might be a vast speculative bubble that can hurt the new investors.
Various cryptocurrencies have already vanished because of the recent drop in prices. But the thing is that it doesn’t matter what the ultimate fate of the digital currencies, the innovative technology which supports them will completely alter the nature of economics. There are various myths about bitcoin and cryptocurrencies which everyone should know. If you want to learn about them, look at blockchain and sustainable growth.
Myth number 1
Bitcoin is real money!
No doubt that bitcoin was designed as a medium of making payments without actually depending on the traditional modes of making payments. Bitcoin is a digital system that allows the two parties to make direct transfers without involving any third party. It eliminated the need for government and other financial institutions. According to various experts and bitcoin enthusiasts, bitcoin is the future of the payment system. However, the fact is that it is pretty expensive to make the payments through bitcoin, and it is pretty slow also. You should know that it might take up to 10 minutes to make the Bitcoin transaction to get validated. The average transaction cost of one transaction is 20 dollars which is expensive. In addition, vast swings in the value of bitcoin make this crypto unreliable to be used as a means of payment.
Myth number 2
Bitcoin is a sensible investment!
The funds in the bitcoin investment have thrived. The impressive thing is that even the big banks are also getting into the world of bitcoin. Moreover, the tongue is that if you bought bitcoin in the last year, then by now, you might have made up a fantastic return on your investment. Various experts claim that bitcoin is the best investment, but you need to beware the supply of bitcoin is very tightly controlled. There is a maximum limit of bitcoin beyond which it is not possible to mine them, and that limit is 21 million. The one reason bitcoin has value is that we, the individuals, think it has value and is a good investment option. If we stop, then the value of this crypto will fall immediately.
Myth number 3
Bitcoin will replace the dollar and fiat currency!
There have been a lot of debates about the topic that bitcoin can replace the dollar and fiat currency. We all know that bitcoin poses a significant threat to the supremacy of the fiat currency and traditional financial system. You should know that any government or financial institutions do not back up bitcoin. There is only the trust of the individuals who peculiar them. At the same time, the dollar is the fiat money that is backed up and regulated by the US government. So the investors will genuinely have faith in the dollar, even if it is the most challenging time. Various stable coins are introduced in the market, and the fact they are known as stable coins is because they have a stable value, and it is easier for everyone to conduct a transaction by using them. But the one thing that you should know is that the value of these stable coins comes mainly from government-backed currencies.
Myth number 4
Bitcoin is disappearing, and meme coins will be the future of digital currency!
Bitcoin is the oldest cryptocurrency, and it is now seen as the grandfather of digital currencies. Investors are now investing their money in other digital currencies. According to some reports, bitcoin was losing its authority, and it is not the driving force in the digital currency world. Instead, meme coins such as dogecoin are now making their presence in the digital currency world. But bitcoin technology is still the number one technology, and it is the largest crypto according to the market capital.