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Misconceptions about Bitcoin

Leestijd: 4 min.

IFC +

3/16/2022

Bitcoin is for criminals:

Less than 1% is used for criminal purposes. The most popular currency for criminal purposes remains the dollar. Most people involved in Bitcoin have one of two thoughts: make money as quickly as possible or genuinely participate in the financial revolution that Cryptocurrency offers. Governments and the mainstream media like to tell people that this is the currency of choice for criminal activities but nothing could be further from the truth.

Bitcoin is a scam:

There are indeed scammers who like to abuse the good name of Bitcoin but Bitcoin in itself is the most honest means of payment there is. Everyday people are scammed via email yet you don't hear anyone calling for email to be banned. If you step into this market with the right knowledge then the chances of being scammed are zero.

Bitcoin is a pyramid game:

In a pyramid game there is a central person or group that pays the older customers with new investments. Anyone who knows anything about Bitcoin knows that this is totally false. Bitcoins are mined according to a set pattern and no single person has control over them. Bitcoin is decentralized and consensus is reached by miners from all over the world.

Bitcoin is illegal:

Totally unrelated. There are only a few places in the world where Bitcoin is effectively banned but we in Europe should not worry. Countries around the world are exploring how to regulate this market and that's not a bad thing. It will make trading Cryptos a lot safer and take the market out of the wild west.

Bitcoin can be hacked:

Bitcoin is not hackable due to its protocol, when one hears about hacked Bitcoins it is not the coin itself but the platforms on which it is traded that has vulnerabilities. You can perfectly protect yourself from this by working with the right wallet such as a hardware wallet from Trezor or Ledger. That way you coins are offline and therefore not vulnerable to people with bad intentions.

Bitcoin is not traceable:

On all the platforms where you can buy Bitcoins, a KYC (Know Your Customer) is mandatory, this means that you have to upload your information such as identity card and proof of domicile. This is due to anti-money laundering legislation. So if your Account is tied to your KYC, Bitcoin is basically fully traceable due to the open transparent nature of the Blockchain.

Bitcoin mining is too polluting for the planet:

The truth is that Bitcoin only eats up 0.003% of the total energy on earth. This is only half versus banks' servers. It is also true that most large mining facilities try to run on renewable energy like windmills, solar panels or like a very large mining plant in Iceland that runs entirely on geothermal energy.

You're too late:

Although Bitcoin has risen spectacularly in the last 10 years you are certainly not too late. You are still among the early adopters today, knowing full well that the entire crypto world is still in its infancy so the room Bitcoin has to continue rising will probably be as spectacular as it has been in recent years.

I can't afford Bitcoin:

Although at the time of this writing Bitcoin was at about $41000 anyone can invest in it. This is because Bitcoin is divisible into a hundred million units called Satoshi's. You can buy Bitcoins for as little as 5€.

You can't use Bitcoin anywhere:

The places that accept Bitcoin are increasing every day. In France and Switzerland, it will be possible to pay with Bitcoin in thousands of stores. You can also apply for a Binance visa card, for example, and then pay anywhere that accepts visas. You pay in Bitcoin and the other party receives the amount in Euros or Dollars. This way you can pay anywhere with Bitcoin and the merchants will not even notice.


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