- Bitcoin Is Dead
The myth that people think about Bitcoin is that it is dead and no longer used by anyone. There is a website, Bitcoin Obituaries, which keeps track of the declarations of Bitcoin’s death going all the way back to 2010. In reality, Bitcoin is currently at its peak point. at least when measured by the number of transactions that are happening on the network every day. Blockchain Capital Managing Partner Brock Pierce say its a sign of its success.
Bitcoin Is Anonymous
Bitcoin is known as the “anonymous currency of the dark web,” it is right to say that Bitcoin addresses are pseudonymous. This means that there is an identifiable address (or many addresses) for each user on the network, but no one knows who is actually behind this address. All transactions are recorded on a fully public ledger that anyone can view on a block explorer. A few blockchain analytics companies are able to deanonymize large portions of the network.
Bitcoin Is Used by Terrorists
Bitcoin is used by some criminal or terrorist; however, there is no evidence of using Bitcoin by Terrorists on any noteworthy scale. As it is not confirmed by any authority that terrorists are using Bitcoin to finance their activities but a Europol investigation found in the early year that third-party reports the use of Bitcoin by terrorists. Bitcoin is used for illegal transactions on the Internet, the truth is that the privacy issues related to the public blockchain make it a bad option for terrorists. In the world of untraceable payments, cash is always the king. The founder of Bitcoin exchange called Gemini, The Winklevoss Twins said Bitcoin is heaven for really stupid criminals.
Bitcoin Can Shutdown; It’s a Bubble
There is a misconception that Bitcoin is a bubble that might burst anytime. According to CEO of Bitxoxo, Every time the price of Bitcoin is increasing and it’s because Bitcoin is a decentralized currency, as it is not controlled by any authority hence it cannot be manipulated. Another reason is the limit of Bitcoin that is 21 million.
Every year there is an increment of 500 too 1000 % in the growth of Bitcoin if it is a bubble than growth would have stopped a long time ago. So its next to impossible to Shutdown Bitcoin.
Bitcoin Is a Ponzi Scheme
Bitcoin is not a Ponzi scheme. A Ponzi scheme needs an initial owner who leads investors that they will gain some profit. Bitcoin has no central point of power, as it is a decentralized system, so no promises of profit. A Ponzi scheme always wants new investors to pay off previous investors. This is not the case with Bitcoin, as the system can usually work with any number of users. However, the network is stronger and more elastic when used by more people. If Bitcoin is a Ponzi scheme, then all other forms of currency were also initially developed as Ponzi schemes.