The remarkable growth of cryptocurrencies in the shortest period of time has given the rise to many myths and lies. It is obligatory to learn everything about the digital currencies before making any amount of investment or payment using the first virtual currency popularly known as the Bitcoin.  

Below I am going to discuss the five common myths about the Bitcoin in the international market:

1. Bitcoin is beyond the control of law

The entire currency types run worldwide whether digital or non-digital are governed by the law. The recently introduced cryptocurrencies including the Bitcoin is controlled by the laws designed by the financial experts. The cryptocurrency exchanges are regulated under some specific laws.

In order to prevent money laundering, every single miner and key Exchanges needs to comply with KYC (Know Your Customer). The IRS considers Bitcoin as a taxable property and therefore Bitcoin is not beyond reach of the law.

2. Bitcoin is a waste of higher energy

Bitcoin - the first cryptocurrency is based on block-chain technology. It uses electrical energy and provides a number of the advantages. For the miners, the Bitcoin mining is an energy exhaustive process making payments faster.

The energy consumed is not a waste but it is the source used to function and operate the block-chain used for the trading and payment transactions. It is obligatory to secure the system and Bitcoin will certainly consider the other energies reducing the energy consumption in future.

3. Credit Card or cash will be replaced by the Bitcoin

There are certain limitations associated with the Bitcoin. It does not have the different major properties required to be accepted universal payment medium. The design limits per second transactions. The Bitcoin transactions are relatively expensive and are gradually increasing due to the operational and maintenance cost. The other limitation is the transaction not happening instantly on account of the limited block-chain availability. Thus, there are no chances of bitcoin replacing credit cards or cash in the years to come.  

4. Buying the entire Bitcoin

No truth lies in it because Bitcoins can be divided and a part of it can be bought. The value is measured in per unit which can go higher or lower down. The per unit value will completely depend upon the international market demand and the investments in the cryptocurrencies traded in the Stock Exchanges worldwide.

You can buy Bitcoins online sitting in any corner of the globe. The investors can also buy bitcoin in Zimbabwe 24x7. One can go down to the eight decimal place (0.00000001 BTC) and purchase Bitcoin as per the personal financial capacity.

5. Bitcoin is unnamed

It is incorrect to say that Bitcoin is anonymous because every single Bitcoin transaction is recorded on to the block-chain. A dedicated ledger keeps the record of balances, spending, and can easily identify the wallets from where the transactions were made. The owner of wallets can be easily specified by the wallet address.

The purchases made from stores accepting Bitcoin can identify the address and wallet owner. Thus, Bitcoin is not anonymous.

Published by Calida Jenkins