Bitcoin Facts and Myths: There are a lot of controversies around the crypto world and you can find such news on social media platforms every minute. So, people have a fear about bitcoin, and small investors or individual investors do not want to take any risk with their funds. But, as a responsible citizen and investor, you must know the differences between myths and facts and you must do some research to know the actual facts about cryptocurrencies. If you are interested in bitcoin trading, visit The News Spy to acquire an utter guide to crypto trading.
Here, you can find some myths and facts about crypto:
Bitcoin users can hide their identity and invest their funds anonymously, which will lead to illegal trade and money laundering business. – It is true that anonymity can be there in bitcoin trading, but users must enter their information while they make a payment with bitcoin, and it is not an illegal trade. Lawmakers in the U.S stated that the information on bitcoin trading can be accessed through its blockchain. Apart from that, you cannot trade bitcoin without having an account in an exchange, and you need to complete your KYC process to open a crypto account. So, your exchange will have your information, and you can be easily traced if you make a wrong move with your investment.
People can use bitcoin as a credit card in the future – it is a myth because bitcoin is a digital token or asset, and you can treat it as an investment option. The fact is that you can use your coins to make your transactions online and you can transfer funds to another user’s account faster, and it will cost you less transaction fee. But, the bitcoin network is not reachable in remote places as there is no internet connection available in these places. On the other part, credit cards have a wide network and people around the world can use their cards without any internet connection. So, Bitcoin will not be treated as a credit card in the future.
It is a Ponzi – Bitcoin is not a Ponzi scheme because it cannot be controlled by any central authority or bank. Any user can use the blockchain to generate bitcoin and he or she can sell or buy such coins in any number. You do not need to go through any third-party services to buy or sell your coins, and it is a myth that bitcoin is a Ponzi.
It is an expensive deal to invest in bitcoin – It is another myth that you can find on the internet because you can buy a coin for $6,000. If you cannot afford to invest this amount then you can buy a fraction of a coin. For example, if you are living in India and you want to convert your Indian currency into a Dollar then you can convert any amount into a Dollar, and it is not necessary to buy dollars, you can also buy cents with your fiat currency. Similarly, a fraction of a coin is known as Satoshi, and you can buy some Satoshi within your budget.
It is risky to invest in bitcoin – Bitcoin is indeed volatile, and you can find such information in the bitcoin index. It has gained huge popularity in 2017 and it declined at the end of the same year. But, you can find such ups and down in every commodity market and you should treat such coins and cryptocurrencies as a commodity.
Trading bitcoin is illegal – It is a myth as well as a misconception because bitcoin trading is legal in most countries. There are some countries like China that have banned such crypto trading in their state. People think that investors can use their black money to gain a huge profit from the crypto market, and it can lead to some illegal activities. Transactions with fiat currencies can be traced easily because there is a central authority like the government or bank that can control such transactions. But, it is not possible in bitcoin trading. However, Biden, the president of the U.S has declared a bill about crypto and lawmakers are working on this bill to frame a uniform law to make such crypto activities legal.