Top 5 Common Misconceptions About Bitcoin

Top 5 Common Misconceptions About Bitcoin

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21. November 2019. by adminBTC
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75% of US adults have heard about Bitcoin. However their info doesn’t at all times come from dependable sources. Whether or not they consider it’s magic web cash or a automobile for drug lords and pedophiles, listed here are the 5 largest Bitcoin misconceptions round. The Most Frequent Bitcoin Misconceptions 1. Bitcoin Is Nameless It’s
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75% of US adults have heard about Bitcoin. However their info doesn’t at all times come from dependable sources. Whether or not they consider it’s magic web cash or a automobile for drug lords and pedophiles, listed here are the 5 largest Bitcoin misconceptions round.


The Most Frequent Bitcoin Misconceptions

1. Bitcoin Is Nameless

It’s not shocking that one of the crucial frequent bitcoin misconceptions is that it’s nameless. Even the above-mentioned survey by YouGov begins the query of whether or not respondents have heard about cryptocurrencies by saying:

A cryptocurrency is a type of digital or digital cash that’s usually designed to be decentralized, safe, and, in lots of instances, nameless. With that in thoughts, which, if any, of the next cryptocurrencies have you ever ever heard of?

What lots of people don’t really know is that the Bitcoin blockchain is public. Anybody can entry all transactions at any time since its inception in 2009 through varied block explorers.

It’s true {that a} jumbled string of letters and numbers wouldn’t imply a lot to most of the people. However Bitcoin transactions are infinitely extra traceable than chilly laborious money and provides authorities a a lot better likelihood of monitoring down anybody wanting to maneuver cash anonymously. 

Legislation enforcement businesses, in actual fact, have seen growing success in leveraging the Bitcoin blockchain for investigations.

2. It’s Solely Utilized by Criminals

Bitcoin has had a tricky time shaking off its affiliation with criminality ever since its standing because the notorious Silk Highway’s foreign money of selection. 

The darkish net market allowed for unlawful items and providers to be purchased and offered, and was a hotbed of illicit exercise with a group utilizing BTC as a way of change. 

Bitcoin has additionally been a Ransomware hackers’ foreign money of selection many instances based mostly on the truth that it was seen as digital, quick and simple. 

Nonetheless, because of the open, clear, nature of crypto transactions, criminals sometimes hit an enormous wall when making an attempt to transform BTC funds into fiat. To not point out, transactions can now be traced to some extent. Bitcoin performed a vastly vital function lately in shutting down one of many largest little one porn web sites on the earth, on account of analysts monitoring bitcoin addresses again to a darknet server.

This makes bitcoin a vastly inferior selection of foreign money for criminals than, say, the US greenback (nonetheless the overwhelming favourite). The overwhelming majority of US$100 payments are held by drug sellers outdoors the USA. Messari additionally reported earlier this yr that for each $1 BTC spent on the darknet, $800 in fiat is laundered.

If that wasn’t sufficient, a examine discovered that 90% of US payments comprise traces of cocaine. Criminals might use bitcoin simply as they use the US greenback, however that doesn’t imply it’s just for felons.

3. The Community is Susceptible to Hacks

One other of the largest bitcoin misconceptions is that the community is liable to hacks. With the media consistently feeding the general public information of change hacks and scams, together with victims shedding their funds, it’s comprehensible that individuals assume that Bitcoin isn’t safe.

Nonetheless, the truth is that the Bitcoin blockchain has by no means been hacked. Crypto change hacks are purely results of the platform’s personal safety flaws, particularly leaving buyer funds in scorching wallets related to on-line servers.

Now that the community it has turn into extra decentralized, with the hashrate hitting an ATH in October 2019, it’s safer than ever.

bitcoin hashrate

No single entity would have sufficient computational energy to coordinate an enormous simultaneous assault on its 10,000 nodes distributed throughout the globe.

4. It’s Just for Web Geeks

When the business is dominated by discuss of blockchains, mining, hashrates, problem adjustment, laborious forks, coding, and ASICs; folks might be forgiven for considering that Bitcoin is just for web geeks.

To a sure extent, they’re technically proper. Nonetheless, the core nature of Bitcoin is that it’s a common peer-to-peer change of worth that enables anybody to ship and obtain funds anyplace on the earth, with out intermediaries. 

The protocol is about many issues past its technical specs. From monetary freedom and inclusion, to a retailer of worth, it’s more and more proving that it’s not only for folks with Pc Science levels. 

Now that Bitcoin is being talked about on the highest stage by governments, from the USA to Venezuela and China, it’s lastly beginning to sink into the general public conscience.

5. A Authorities Can Shut Bitcoin Down

Since Bitcoin has been “banned” in a handful of nations and the buying and selling of it made unlawful in China, folks wrongly consider {that a} authorities may carry the asset down. 

However as Andreas Antonopoulos so eloquently put it when requested if he had any “considerations about a big nation-state” eager to actively destroy Bitcoin:

I don’t fear about that in any respect, this can’t be executed with Bitcoin anymore… Bitcoin has achieved a stage of computing that no single nation-state can overthrow it by means of computation alone.

Bringing down the main cryptocurrency isn’t potential as it will require an enormous covert operation of chip fabrication and a coordinated assault to dominate the subsequent block for 10 minutes. After this level, the perpetrators can be revealed, kicked off, and misplaced billions of {dollars} for nothing.

Do you assume no-coiners nonetheless have these misconceptions about Bitcoin? Add your ideas under!


Photographs through Shutterstock, Twitter @johnycrypto @MrHodl, charts by Blockchain.data





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