This Week's Topic - Common Bitcoin Misconceptions
In this issue, we are going to cover some of the common misconceptions that people new to Bitcoin hear and believe are true.
Misconception #1 - Bitcoin is Money for Criminals (read for more insight)
Criminals are savvy and very creative, so they will use any resource that allows them to get the job done, especially new technology. With that being said, less than 1% of all transactions using Bitcoin are deemed illicit, while 2.7% of fiat (or government currency) transactions are used for criminal activity. Following the cash "paper trail" is difficult to do, but each transaction that uses Bitcoin is found on the ledger and cannot be hidden from anyone.
Misconception #2 - Bitcoin is a Scam (read for more insight)
Our Bitcoin Maximalist video from last week reminded all of us... "Bitcoin is not crypto and crypto is not Bitcoin". Just like with anything in this world, scams are possible and people will try to take advantage of others. The reason why Bitcoin is so different compared to other forms of crypto, or even "sh**coins" (pardon our language) is because it is decentralized, it has a capped supply of 21 million and it has proof-of-work mining that backs and supports the technology that makes it great. As always, do your research before investing your hard-earned money into anything.
Misconception #3 - Bitcoin Has No Value Because it is Not Tangible (read for more insight)
Compared to gold and fiat currencies, sure, Bitcoin is not tangible. That does not mean, however, it does not have value. Bitcoin is very valuable because it solves a lot of problems that we are facing today in our current monetary system.
1) The supply is limited, which protects itself from inflation. There is no such thing as printing more Bitcoin. Remember, only 21 million Bitcoin will ever be created!
2) It is decentralized, meaning that no government or single entity can control the amount of Bitcoin available or how it can be used.
3) It is money without borders. Anyone, anywhere in the world with a device and the internet can send and receive Bitcoin. The greatest minds in the space are currently working on making the transactions faster and cheaper, so stay tuned!
See below for more reasons why Bitcoin is valuable in comparison to gold and fiat.