BitCoin And It’s Popular Myths
Apr 10, 2018 Posted / 1081 Views
Bitcoins, arguably the most famous cryptocurrency till now has had its share of controversies be it the difficulty in understanding it, and it’s untraceable tag, hacking or the fact that it’s a technological marvel.
However, many people still are to understand what bitcoin is and that it is beyond these petty controversies that surround it always. There are so many myths associated with Bitcoins which are obviously false! Let’s break them for you.
Well just because Bitcoins are untraceable and has been developed by an anonymous, a ghost people believe it to be the currency of criminals. Criminals were already working with many different currencies and way of payment before Bitcoin came in. Just because it is not regulated by the government, does not make it a criminal property!
It’s an unsafe investment
Yes, like every currency it has its ups and downs on the stock market, but that doesn’t mean that it is not a good investment and that it will only go down with time. It had its share of ups too when it was at an all-time high of $20,000, and currently, it's low at $6000. But even this is not constant!
Well, Ummm no. Bitcoins do not multiply, and just because you own a bitcoin, it doesn’t mean you can create new ones. It is nothing, but an open source software which was developed by no one knows who.
Well no. One thing for which these cryptocurrencies are known is the security they provide. Yes, they have had attacks on them, but that doesn’t mean that they can be hacked by just anyone.
Well no. Bitcoins play simple economics. They work on demand and supply, and currently, they have a high demand yet a low supply. Bitcoins are limited in number with only 21 million in circulation all around the world.
It is called digital gold for this very reason.
Goldman Sachs published a research report stating that “Bitcoin has a mathematically certain total supply.”
Bitcoin Users Are Anonymous
Well, you aren’t the only one to show off that you know a bitcoin user. Basically what happens is the platform on which bitcoins work, blockchains create a cryptographic alt name for every transaction that takes place using a bitcoin on the international network, which by the way is accessible to every person in their virtual ledger.
Bitcoin Can Never Be Regulated
No. if a government someday decides to regulate and legalize, it is and will be accountable to the law. Since it also deals with user data, many countries, especially the EU is trying to regulate it under the GDPR rule to assure user data privacy.
An example like this is of China which is in the process of banning Bitcoin because of this very untraceable and unregulated nature as it is not only against the rule of the country but will promote activities which the communist government would never approve of.
The US too is not going to regulate it soon, once the Senate passes the bill for the same!
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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