In our last post, we discussed five of the most common misconceptions about Bitcoin. While those were natural questions someone new to the world of cryptocurrency may have, there are some Bitcoin myths floating around out there that can’t seem to stand up to even the most modest levels of scrutiny. So today, let’s take a look at the two Bitcoin myths that are too good to be true.
And the one myth that’s been confirmed rather than debunked.
The Tulip Bubble Applies to Bitcoin
For those of us a little fuzzy on the economic details of The Netherlands during the 1630s, the gist of the tulip bubble is this: Something referred to as tulip mania struck citizens of this region, artificially inflating the value of tulip bulbs to the point that it was actually possible to buy a modest home with a single bulb. Though the tulip craze had struck, bubbled and burst between 1634 and 1637, the memory of it is alive and well to this day.
On the surface—once you get beyond the fact that you could’ve paid off your home and property taxes with a few tulip bulbs—this Bitcoin myth sounds almost crazy enough to be true. Except for the fact that tulips wither, bulbs eventually become too old to plant, and Bitcoin has already survived nearly four times as long as the entire tulip bubble process from start to finish.
It also bears mention that Bitcoin, as a digital currency, does not erode in value the way gold doubloons did. If you own one Bitcoin, its value is determined by the laws of supply and demand, not how many pirates or innkeepers have shaved a little gold off the doubloon here and there.
Getting Rich Quick with Bitcoin
As much we’d all love to be able to say that this is the true Bitcoin myth floating around the internet, it’s unlikely that we’ll all become Bitcoin millionaires overnight. Is it within the realm of possibility that someone could buy Bitcoin at that one perfect moment when the value has temporarily dipped and then sell it for a substantial profit when the value has stabilized? Stranger things have happened, and there are a number of such lucky individuals out there today.
Then again, Wall Street is littered with stories of investors who lost significant sums of money when they thought they could time the market just right.
While we obviously believe in this form of cryptocurrency enough to provide Bitcoin ATMs that allow everyday people to get into Bitcoin with the cash they have in their pockets, we can make no guarantees.
The FBI Owns Bitcoin
Yes, the idea that the FBI maintains a hefty digital wallet can be a little strange for all of us to wrap our heads around, yet as of November 2019, the Bureau held roughly 1.5% of all the Bitcoins currently in circulation in the entire world.
When we consider that this is the same Federal Bureau of Investigation known for bringing down organized crime families and working to prevent domestic terrorism, this feels like it should be nothing more than a myth. Of course, the FBI also has jurisdiction over cybercrimes, meaning that taking down a single black market site using cryptocurrency as payment—and the related user accounts—allowed the FBI to seize all those Bitcoins.
Just one more way we know that Bitcoin is not, in fact, the preferred currency of criminals everywhere. And if it ever was, that definitely changed after that particular FBI bust.