Top 7 Most Popular Bitcoin Myths In India Debunked

Updated: Saturday, April 24, 2021, 10:51 [IST]

Bitcoin has been wrapped in controversy since its launch. They have also been described as too unpredictable and problematic for a good investment choice, constantly linked to illegal activity and extreme volatility. Satoshi Nakamoto published the first Bitcoin specification and proof of concept on a cryptography mailing list in 2009. Nobody owns the Bitcoin network, just like no one owns email technology. Both Bitcoin users around the world have power over the currency. Financial companies are acutely aware of the possibilities they might be losing out on as Bitcoins quickly enter the mainstream. They could make significant potential gains by encouraging investment into crypto-currencies and creating on and off-ramps between fiat and crypto-currencies, but some are still hesitant. Bitcoin can be divisive. Bitcoin enthusiasts believe the cryptocurrency will soon overtake gold, all government-backed money, and credit cards, as well as upend the banking system. That is unlikely to happen, at least in the short term, despite rational exuberance.

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 characteristics is BTC's decentralization: unlike the Rupee, which is managed and circulated by the Central Bank of India, it does not need any government support to run its operations. This is why it has piqued the interest of people from all walks of life, including cybercriminals.

To begin, cryptocurrency laundering occurs because online websites, applications, and wallets allow users to add a false name to their accounts. In other words, the user's identity stays hidden. The term "pseudonymous" refers to this type of payment. It is, however, extremely rare.

Bitcoin Myth 2: Bitcoin can be easily hacked

While certain markets have been hacked as a result of poor stewardship, the blockchain has remained stable throughout.
Bitcoin is almost impenetrable to hackers. It makes use of a technology called blockchain, which is so complicated and efficient that it makes it almost impossible to hack or reverse any transaction that enters and is validated on the network. Exchanges should be assured that their assets will not vanish overnight if they invest in appropriate security measures to protect the markets. Experienced and greedy hackers, on the other hand, can gain direct access to your financial sources, such as a bank, a fund transfer account, or a Bitcoin wallet account. However, the latter part is incorrect.

Bitcoin Myth 3: BTC transactions are anonymous and untraceable

By allowing users on the network to see every transaction, blockchain technology provides 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 why it is used by large charitable organizations all over the world. Bitcoin or Litecoin, are more traceable than a conventional cash since each wallet in the transaction chain can be viewed. Countries such as India have implemented KYC (Know Your Customer) policies for anyone who opens a bitcoin wallet. By requiring bitcoin holders to apply or upload verification IDs online, the authorities can compile data on them.

Bitcoin Myth 4: To purchase BTC, you'll need thousands of rupees

Though the price of Bitcoin is currently over 49,500 USD, you don't need 36 lakh rupees to buy a small amount of it. Most importantly, you do not need to purchase 1 BTC to begin your crypto journey. Every second, the price changes. A fraction of a Bitcoin can be purchased. Bitcoin, for example, can be purchased for Rs 100 or Rs 1,000.

Bitcoin Myth 5: Bitcoin is too volatile to be a store of value

Although crypto markets have been volatile in recent years, there are now signs of increased stability. After October 2018, for example, Bitcoin's volatility has dropped significantly. This point falls apart now that we're seeing other assets on the stock exchanges priced at higher levels of uncertainty than Bitcoin.

Bitcoin Myth 6: You can never safely buy and sell Bitcoin online

If you choose a Bitcoin marketplace that isn't safe and stable, this misconception may become a hard reality. However, if you're trading on a trustworthy website, you can trade and sleep soundly at night without fear of 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

The question of whether bitcoins have intrinsic value outside their use as a medium of exchange is hotly debated. Sure, if civilization comes to a stop, the decentralized money, which isn't supported by the government and isn't pegged to any asset, will be worthless. Some claim that Bitcoin is useless because it is backed by no valuable asset. However, Bitcoin's value skyrocketed to over 63,000 USD in the first quarter of the year. Its value and volatility are greatly influenced by the unpredictable rate of demand and supply

Conclusion

Many people are also suspicious of Bitcoin and its capabilities, so we can't blame you if you believe some of these lies. Bitcoin is unquestionably a force for creativity, and it will have the potential to play a significant role in the future of our global financial system. Money, which has developed from cowrie shells to clay tablets to precious metals, banknotes, and bank balances over centuries, is taking another step forward. Bitcoin's success, on the other hand, is not assured, and it might not be a good investment for everyone. There are threats and uncertainties associated with any new paradigm. Start with the basics to grasp Bitcoin.

Disclaimer: The material on this website is not intended to be investment, financial, trading, or other types of advice, and you should not consider any of the website's content as such. GoodReturns does not recommend that you purchase, sell, or hold any cryptocurrency. Before making any investment decisions, do your own due diligence and consult with your financial advisor.