Top 3 Myths About BTC [Debunked]

Published on: October 24, 2022
Last Updated: October 24, 2022

Top 3 Myths About BTC [Debunked]

Published on: October 24, 2022
Last Updated: October 24, 2022

What are the most mythical things you have heard about Bitcoin?

Probably, you have encountered a lot. Veteran traders can’t help themselves but laugh at these hilarious myths. Well, some sound convincingly factual, but some are downright false.

If you browse the internet about the top myths about BTC, you will see familiar and repetitive answers.

For instance, Bitcoin is created for illegal transactions only, it is worthless in the real world, and the coin is not secured.

In this article, we answer other top myths, aside from the ones mentioned, about the king of all coins: Bitcoin.

Some so-called Bitcoin experts argue that this coin is unstable and that you must start over when it runs out.

They further claim that only one market “whale player” can cause a market to crash severely or rise quickly. So, as a little investor, it is not about you.

The choice comes from the bigger guys. This idea causes most beginners to become completely perplexed and unable to justify investing in the cryptocurrency market. It sounded like betting—huge bets accompanied by prayers for good fortune.

The solution to any confusing matter is research. Know better through studying and expect that even if you already know much more, myths will continue to exist along with many others.

Although The Original Name Of The Coin Is Bitcoin, Scammers Use The Term Bitcoin

Nothing could be further from the truth. Whether to use an uppercase or lowercase B does not reveal the genuine identity of the coins.

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Bitcoin with a capital B is the operation and pattern peculiar to the Bitcoin system; on the other hand, the bitcoin with a small b is the coin itself.

Most likely, newbies get into this confusion, just like getting confused with numerous terminologies and their use. Let’s have another example.

Some still do not know the difference between a Bitcoin address and a wallet. Some think that they are the same. A wallet is not the same as an address. In the most basic terms, your wallet represents your home, and your bitcoin address represents your address.

As simple as that. The 26 to 35 alphanumeric characters that make up the bitcoin address serve as a unique identifier.

It is transient and adapts to a new transaction. There are now three accepted formats for bitcoin addresses. Your funds get safely stored in a bitcoin wallet that requires a password.

See, there are plenty of things to know when getting started with bitcoin. At first, it is a bit overwhelming, but you will get along with it as time passes. You grow more knowledgeable as you gain experience. But some novice traders cannot wait for that moment.

They want to be ahead of others from the get-go. So, they go to experienced, regulated, and reliable crypto traders who can guide them in their crypto trading journey.

And to connect with them, they use a platform, such as Bitcoin Loophole, that can jumpstart their crypto trading.

This option is just one of the many traders go to, especially beginners. It is an intelligent move, knowing that many self-proclaimed crypto experts are out there trying to scam new traders entering the crypto realm.

Bitcoin Mining Is Exclusive To A Few People

Have you ever heard this? To create a chain of linked transaction blocks, miners must first solve complex mathematical equations (or algorithms) and computational problems using computers. Anyone with the necessary aptitude and free time qualifies to work as a miner.

Miners receive Bitcoin as well as transaction fees as payment for their work. It is essential to keep in mind that Bitcoin is a mostly decentralized system. The back end is uncontrolled. As a result, there is no restriction on who can mine.

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Bitcoin Offers Free Income. You Are Exempt From Paying Taxes

Another incorrect statement. We need to take this concept with caution. It might have been accurate a few months ago, but governments in many nations have started asking for tax payments on bitcoin revenues.

So we have to be careful. Some countries are even asking ridiculously high rates. However, some have not positioned themselves on Bitcoin, while others require taxes.

And at some point in the discussion, there were some nations where cryptocurrency-related activities were outlawed.

As a result, there is no simple yes or no response to this query. To identify the best option, you will need to conduct your investigation, understanding your country’s position on this issue.

Final Thoughts

You will hear a lot from others stating facts about Bitcoin. Before you believe in any of what they say, do your due diligence. Never trust notions without supporting pieces of evidence or reliable resources. Research to strengthen your capabilities of knowing the difference between facts and mere myths.

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Written by Allison Langstone

Allison produces content for a business SAAS but also contributes to EarthWeb frequently, using her knowledge of both business and technology to bring a unique angle to the site.