There is so much hype about Bitcoin doing rounds in online and offline discussion forums. Here are the truths and lies about Bitcoin.
Bitcoin is a hotly debated topic in multiple discussion forums online and offline. Although Bitcoin is a technological invention, its applications extend far beyond the financial and tech circles. Several leading researchers, economists, academics, and financial analysts generally describe Bitcoin as a revolutionary transaction currency and investment tool with significant impacts on the entire global economy.
Bitcoin’s meteoric rise over the last decade has made it a phenomenon increasingly sought-after by governments, institutional investors, businesses, and individuals worldwide. However, that growth has not been without setbacks. Bitcoin has also faced criticisms, with most critics concerned about its environmental impacts and high volatility. Some have also raised concerns about Bitcoin’s decentralization, arguing that it encourages illegal financial activities.
To some extent, those mixed reactions have tainted Bitcoin’s reputation, making it difficult for most people to separate the truths from the lies. Nevertheless, here are the most common truths and lies told about Bitcoin.
Lie – Bitcoin is a Currency Reserved for the Wealthy and Tech Savvy
This statement is among the most common lies that people say about Bitcoin. Although Bitcoin is a tech-based currency that mainly appeals to tech-savvy companies and individuals, it has no central authority to regulate its supply and usage to a specific community, social class, or region.
Truth – Bitcoin is a Decentralized Currency Accessible to Anyone
Bitcoin is not subject to government law or regulation like fiat currency transactions. Instead, it runs on a distributed blockchain network, accessible to anyone via a smartphone or computer and an internet connection. Its peer-to-peer network enables users to send and receive payments worldwide, without external influences. Cryptocurrency exchanges such as bitcoinprime.software are the most popular marketplaces to buy and sell Bitcoin. However, you can also acquire Bitcoin through investment brokerage firms, Bitcoin ATMs, and payment service providers.
Lie – Bitcoin Transactions Are Untraceable
Many people also believe Bitcoin is untraceable, hence, its association with criminal activities such as money laundering, tax evasion, fraud, drug trafficking, and terrorism funding. However, that is not true because Bitcoin’s blockchain compiles all transactions on a shared digital ledger, accessible to all users on the network.
Truth – It is Possible to Track Bitcoin Transactions
Thanks to the blockchain ledger, Bitcoin keeps an accurate and comprehensive record of all transactions through its network. While the Bitcoin ledger does not reveal the users’ real identities, it provides a basis for tracking transactions and public addresses to unmask the entities or individuals behind them. Law enforcement authorities like the FBI have been able to track and apprehend several cybercrime cases linked to Bitcoin over the recent years, proving Bitcoin transactions are traceable.
Lie – Bitcoin Transactions Are Costly
Some have criticized Bitcoin as an unreliable transaction currency with high volatility. They say international remittances in Bitcoin are very expensive, especially when sending small amounts of money. However, everyday Bitcoin users tend to disagree.
Truth – Bitcoin Has Relatively Lower Transaction Costs
There are various reasons why Bitcoin has relatively cheaper transaction costs than traditional payment methods. Bitcoin transactions do not involve intermediaries like bank transfers or credit card payments. That saves users from the burden of paying commissions to various intermediaries to process cross-border payments. Besides, all Bitcoin transactions occur on the blockchain without any paperwork, significantly reducing users’ financial responsibilities. The fees mainly depend on transaction volumes but are relatively lower than bank transfers, credit cards, and debit cards.
While Bitcoin attracts mixed reactions, it has continually proven its immense potential to revolutionize almost all global economic sectors. Bitcoin has set off a revolution that will undoubtedly affect every economy, for better and worse.