As the popularity and value of bitcoin continue to grow, the cryptocurrency has been besieged by different misconceptions.
- Bitcoin is a mere fad
Some people believe that Bitcoin is a fad or a bubble that will burst soon. To those that hold this misconception, the characteristics of the foremost cryptocurrency are unsustainable and people will lose their money from investing in it.
This has been shown to be a lie because the foremost cryptocurrency has spent more than a decade in existence, and its price cycle displays what is evident in a relatively new market.
- Bitcoin has no utility
To those that believe this, they feel that Bitcoin can’t be used in the real world or it is linked to only illegal activities.
Time has shown that this is wrong. For instance, different projects are built around Bitcoin. The crypto is being used in donations for noble causes. Other governments have continued experimenting with it.
- Bitcoin will be replaced by other cryptocurrencies
Some people believe that Bitcoin will go out of existence soon, but more than a decade of evidence proves otherwise. Different companies that once spoke negatively against Bitcoin are currently accepting it. Some countries like El Salvador have made it their legal tender. A myriad of companies is building around it. There may be innovative competitors in the market, but the evidence does not show that they will topple the foremost cryptocurrency.
- Bitcoin has no value
Critics are of the opinion that Bitcoin has no real value because it is not backed by the government’s authority or gold like traditional financial instruments.
Bitcoin is different as it derives its value from its scarcity, pegged at a maximum of 21 million coins. Apart from the aforementioned, as time elapses, the number of coins that can be mined is being reduced drastically. The demand for Bitcoin also influences its value.