Bitcoin is the most famous type of cryptocurrency and continues to grow in popularity. If you're interested in entering the world of bitcoin, it can be overwhelming. Fortunately, all you need is the right information to get you set up and you'll be set in no time.
As you continue to do your research, you'll likely come across some bitcoin ownership myths. It's important to understand what you might come across and separate fact from fiction. That's where this guide comes in.
Ready to learn more? Let's get started.
1. Bitcoin Is Bad for the Environment
Bitcoin mining is an energy-intensive process, no doubt about it. Anybody can become a miner but they'll need special hardware chips to solve puzzles that create new blocks in the bitcoin ledger. This decentralized nature can be confusing because no one knows the exact amount of energy used.
It's estimated to be several gigawatts at any given moment. It's no wonder that many people worry about bitcoin's environmental impact.
However, compare that to various currencies. Banks pay for security guards and other security expenses. That isn't seen as wasteful.
The same can be said for bitcoin mining. The mechanism that bitcoin's blockchain uses require energy. At this time, there is no way to make bitcoin secure without that use of energy.
2. Bitcoin Has No Real Use
Plenty of bitcoin critics mention that there is no real-world use for cryptocurrency and that it is mainly used for illicit activity. These statements aren't true.
There is plenty of evidence that Bitcoin has a long history of being used to make payments to anyone in the world, without a bank in the middle. Take a look at the Bitcoin price and you'll quickly understand its legitimacy.
3. Bitcoin Isn’t Secure
Although it is difficult for people to understand exactly how bitcoin works, that doesn't mean it's not safe. In fact, the bitcoin network has never been hacked. The open-source code was scrutinized by several security experts and bitcoin was able to solve the double-spend problem which removed 'trustless' peer-to-peer currencies.
4. Bitcoin Is Beyond the Law
Back in the day, bitcoin was the currency of choice for multimillion-dollar underground drug markets. This prompted critics to claim that bitcoin was a haven for people looking to evade the law.
This couldn't be further from the truth. New technology always requires updated interpretations of existing statutes and that process is underway for bitcoin. Its exchanges are already regulated through specific laws in some states and the original underground drug market was closed.
Although it had a beginning that made people skeptical, bitcoin ownership is secure and legal.
Debunking Bitcoin Ownership Myths
Roughly 14% of the American population owns some sort of cryptocurrency. It doesn't seem like it's going anywhere and there isn't a better time to learn about it than now. If you're ready to get involved in the cryptocurrency market, you'll need to look out for any bitcoin ownership myths.
Debunking these myths can help you make more informed decisions and understand blockchain technology better.
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