As with anything, if we search the internet long enough, it’s usually possible to find articles that will confirm our preconceived notions. The problem with this is that it leads some to hold onto the myths and misconceptions that have already been thoroughly debunked.
It’s time to lay these five Bitcoin myths to rest.
Myth #1: Bitcoin Has No Value
While it would be easy to believe this is true based on how quickly blockchain technology exploded onto the scene, bringing various cryptocurrencies including Bitcoin with it, it’s simply not the case. Bitcoin is a commodity that has value because of its scarcity and the economic laws of supply and demand.
Bitcoin detractors like to point to the fact that there’s nothing backing up the value of digital currency; however, that could be said of the American dollar after the US got off the gold standard. Paper money has value because we believe it does, not because there’s a tangible asset guaranteeing its value.
Myth #2: Bitcoin Pays for Crime
Movies and TV shows may like to show Bitcoin as the way people who commit illegal activities on the dark web pay for things, but Chainlysis released a report just this year revealing that only about 1% of Bitcoin buyers are using it for illicit activities. The reality is that paper currency is the preferred method for most criminals as cash is untraceable.
Also, cryptocurrencies by definition are digital forms of currency that you can’t hold in your hands, so a transaction record must exist. Sorry, John Wick fans, but those mysterious gold coins they used were not Bitcoins.
Myth #3: Bitcoin Is Just Another Ponzi Scheme
Named after Charles Ponzi, a Ponzi scheme is one in which investors are guaranteed a certain return on their investment. In order to accomplish this, the investments of the newest investors go to pay the earlier investors, and so on, until there aren’t enough new investors to keep the fraudulent juggling act going.
Cryptocurrency enthusiasts and experts alike enjoy speculating about how much the value could change and how much money could potentially be made. But reputable Bitcoin sellers never make promises guaranteeing that you’ll get rich quick, or even make money. Just as with the stock market, past performance is not indicative of future returns.
Myth #4: Bitcoin Is Expensive and Confusing
When you’re interested in dipping a toe into the cryptocurrency waters, seeing a single Bitcoin trading for thousands of dollars can make it appear too expensive to purchase. Fortunately, you can buy small fractions of a Bitcoin in intervals that make sense for your budget.
And while we freely admit there is quite a bit of cryptocurrency jargon that can be confusing on first glance, getting started with Bitcoin couldn’t be easier. Simply set up your account with us while you’re here, and then you’re free to head to our nearest Bitcoin ATM to make your first cash purchase.
Myth #5: Bitcoin Accounts Are 100% Anonymous
Since Bitcoin strives for transparency, there is an open ledger of digital wallet transactions. While this provides users the sense of being fully anonymous, the reality is that there is a private, secure location where the ownership of each digital wallet is maintained.
We at ATM Coiners take following applicable industry regulations to the very letter of the law seriously, including supporting anti-money laundering laws. This is why we require a valid form of photo ID in order to open an account with us. Following the requirements to know our customers actually protects you as well.
After all, would you really want digital currency you couldn’t prove belonged to you?