India’s 7 most popular Bitcoin myths debunked
Bitcoin Myth 1: Bitcoin is only used for illegal activities
This is perhaps one of the most widely held Bitcoin theories both within and outside the crypto community.
BTC has several features that are not found in any government issued currency. One of these features is the decentralization of BTC: unlike the Rupee, which is managed and disseminated by the Central Bank of India, it does not need any government support to conduct its operations. This is why it has piqued the interest of people from all walks of life, including cybercriminals.
For starters, cryptocurrency laundering occurs because websites, apps, and online wallets allow users to add fake names to their accounts. In other words, the user’s identity remains hidden. The term “pseudonym” refers to this type of payment. It is, however, extremely rare.
Bitcoin Myth 2: Bitcoin Can Be Easily Hacked
While some markets have been hacked due to mismanagement, the blockchain has remained stable everywhere.
Bitcoin is almost impenetrable for hackers. It uses a technology called blockchain, which is so complicated and efficient that it is almost impossible to hack or roll back any transaction that enters and is validated on the network. The exchanges need to be assured that their assets will not disappear overnight if they invest in appropriate security measures to protect the markets. Experienced and greedy hackers, on the other hand, can directly access your financial sources, such as a bank, money transfer account, or Bitcoin wallet account. However, the last part is incorrect.
Bitcoin Myth 3: BTC transactions are anonymous and untraceable
By allowing network users to see each transaction, blockchain technology offers more transparency. Simply put, blockchain users will see when someone sends BTC to someone else. The ability to monitor donations is one of the reasons it is used by large charities around the world. Bitcoin or Litecoin, are more traceable than conventional cash since every wallet in the transaction chain can be consulted. Countries like India have implemented KYC (Know Your Customer) policies for anyone who opens a Bitcoin wallet. By forcing bitcoin holders to apply or download online verification credentials, authorities can compile data about them.
Bitcoin Myth 4: To buy BTC you will need thousands of rupees
Although the price of Bitcoin is currently over $ 49,500, you don’t need 36 lakh rupees to buy a small amount. Most importantly, you don’t need to buy 1 BTC to start your crypto journey. Every second the price changes. A fraction of a Bitcoin can be bought. Bitcoin, for example, can be purchased for Rs 100 or Rs 1000.
Bitcoin Myth 5: Bitcoin is too volatile to be a store of value
Although the crypto markets have been volatile in recent years, there are now signs of increased stability. After October 2018, for example, Bitcoin’s volatility dropped significantly. This point is collapsing now as we see other assets on the stock exchanges valued at higher levels of uncertainty than Bitcoin.
Bitcoin Myth 6: You can never safely buy and sell Bitcoin online
If you choose a Bitcoin market that is neither secure nor stable, this misconception can become a stark reality. However, if you trade on a trusted website, you can trade and sleep soundly at night without worrying about your account being hacked or compromised. For a safe and secure trading experience, most Bitcoin exchanges use an escrow system, require mandatory account verification, and support two-factor authentication (2FA).
Bitcoin Myth 7: BTC is worthless
Whether bitcoin has intrinsic value outside of its use as a medium of exchange is hotly debated. Of course, if civilization stops, decentralized money, which is not backed by the government and is not tied to any assets, will be worthless. Some claim that Bitcoin is useless because it is not backed by any valuable assets. However, Bitcoin’s value skyrocketed to over $ 63,000 in the first quarter of the year. Its value and volatility are strongly influenced by the unpredictable rate of demand and supply
A lot of people are also wary of Bitcoin and its capabilities, so we can’t blame you if you believe some of these lies. Bitcoin is unquestionably a creative force and it will have the potential to play an important role in the future of our global financial system. Silver, which has gone from cowry shells and clay tablets to precious metals, banknotes and bank balances over the centuries, takes another step forward. Bitcoin’s success, on the other hand, is not assured and it may not be a good investment for everyone. There are threats and uncertainties associated with any new paradigm. Start with the basics to understand Bitcoin.
Warning: The content on this website is not intended to be investment, financial, business or other advice, and you should not view the content on the website as such. GoodReturns does not recommend that you buy, sell, or hold any cryptocurrency. Before making any investment decisions, do your own due diligence and consult your financial advisor.