Common Misconceptions About Bitcoin (The Truth Behind Them)

Common Misconceptions About Bitcoin (The Truth Behind Them)

 

Cryptocurrency’s popularity in the market draws the attention and interest of many typical investors, as well as various financial institutions. Its prominence gains admiration, and criticism at the same time from different individuals.

Due to the digital asset’s complex structure, many misconceptions sprouted which created arguments ever since cryptocurrency started its launch.

In this article, let us elaborate on the different myths or misconceptions about Bitcoin, as well as the facts behind them to better understand and guide you if you are a newbie crypto trader or investor.

The following pieces of information are the common myths or misconceptions about Bitcoin:

  1. Bitcoin has no real value

Bitcoin may not be backed by a concrete asset such as gold. But, if you try to look at the US dollar or some fiat currencies, they too are not backed by any physical asset.

Inflation might not occur in the case of Bitcoin, since the digital asset is hard-coded to be scarce.

During Bitcoin’s first launch in 2019, its value ranged at cents of a dollar. And in the next many years, Bitcoin managed to gain popularity and is being perceived by many people in different communities which play a major role in the massive explosion of its price value that has reached $68,000 each Bitcoin.

Mass adoption and how society perceives it have a huge impact on Bitcoin’s price value, as well as other cryptocurrencies.

However, there are a lot of important things to consider when studying a digital token’s price value. As a crypto would-be trader or investor, you need to equip yourself with a lot of useful information to guide you in your crypto journey. You can also find valuable sources of information from the team behind Dart-europe.eu who provides thorough analysis including the future value predictions of experts on bitcoin and other coins.

  1. Bitcoin has no utility.
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Many Bitcoin critics point out that the digital token is useless in the real world. They also claim that it might be used for various illegal activities or transactions. Well, these claims are false.

Bitcoin has been widely used as a mode of payment for a long time. Large institutional investors have been also using it as a hedge against inflation, similar to gold.

  1. Bitcoin and other cryptocurrencies are a fraud

Bitcoin, as well as other digital tokens, have already been accepted and adopted as a mode of exchange for various buying and selling transactions. For this reason, the governments are also taking some steps to regulate them.

However, scams and frauds can occur anywhere including cryptocurrencies. If a digital token doesn’t have a program or code, this is clearly a work of scam from persons who are taking the crypto’s hype and targeting to deceive newbie crypto investors.

To protect yourself from any scam or fraudulent activities in the crypto space, you have to invest in learning first before risking your capital in the crypto market.

Tips on How to Secure Yourself Away from Cryptocurrency Scams

Nowadays, there are lots of crypto scams that are so convincing. They attract many newbies in the crypto space.  Newbie investors need to protect themselves away from these frauds. Here are some tips:

  • Do not invest in a crypto token if you do not fully understand its project, concept, utility cases, and other fundamental aspects to sustain its existence. A lot of research and study are the basic things you need to do first.
  • Always give yourself some time to think and analyse. Some scammers are using well-structured tactics to convince you to invest your capital quickly. For instance, large bonuses and returns when you join as early as possible.
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Spend your time carrying out a plan and in-depth research before making an investment decision.

  • Research is essential for a lot of things. It protects you from ignorance of the things you know nothing about. Before investing, familiarise yourself with the fundamentals. The prominent crypto coins are not scams.

If the coin sounds so new to you, spend your time doing research and study about it. Look for a whitepaper if there’s any. Find out who operates the project. Study the reviews and look for positive ratings.

To conclude:

Just like any other form of investment, when investing in cryptocurrency, always start with a small amount. Do not risk your hard-earned income. You might be protected from crypto scams but you cannot keep yourself away from the cryptocurrency’s highly volatile nature, which can also lose your investment capital.

 

Ayhan Fletcher

"Subtly charming zombie nerd. Infuriatingly humble thinker. Twitter enthusiast. Hardcore web junkie."

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