Six misconceptions about Bitcoin

1. Bitcoin is a bubble

Bitcoin peaked in 2017 and bitcoin keeps rising. A bitcoin chart, where each dot is the monthly average price and the colour shows the time since the extreme halving. A halving is the programmed moment when the number of BTC decreases (when the blue dots change to red dots).

In order to manage BTC volatility properly, one must choose a position size rationally, rather than trading frequently on the exchange. Provided the size is chosen correctly, you should keep your coins for a while.

2. The real value of Bitcoin is zero

Every currency has a value and bitcoin is no exception.

Some of the main advantages of bitcoin are storing money in non-traditional currencies, transferring across the globe, independence from nations and world economies.

The bitcoin digital coin is becoming the best. The entire bitcoin protocol includes 21 million BTC.

3. Bitcoin is not scalable

The bitcoin network can process a small number of transactions in 10 minutes by modern standards, various critics of bitcoin cling to this. But if you compare it with payment systems, each has its advantages.

Bitcoin has the advantage of complete anonymity and security, something its competitors cannot boast of. Some systems emphasise the maximum number of transactions, such as Visa. Bitcoin has increased the number of payments processed with Bitcoin Cash, but the quality of security has suffered.

4. Bitcoin is wasting energy

Many people have the opinion that Bitcoin is sucking all the energy on Earth, but this is a big misconception. Sure, the consumption is huge and raises environmental concerns, but the bitcoin network consumes energy like a small country. The justification for this consumption is that mining precious metals consumes the same amount of energy.

Still, that amount of energy goes into ensuring the full security of the protocol, something that other payment systems cannot boast of.

5. Bitcoin is too volatile

Bitcoin is thought to be incapable of being a savings and exchange medium and fails to meet the challenges of the modern world, in some ways this is realistically true. Bitcoin is not an asset that one is willing to invest in in an emergency.

Bitcoin is not needed for short-term deposits, but the network is developing and perhaps the time will come when bitcoin will be one of the most popular currencies in the world.

6. Governments will ban Bitcoin

Bitcoin’s big risk is becoming the possibility of a ban from governments. Some countries have already banned bitcoin. Some countries do not allow savings in this way, they make you keep your savings in paper money, which soon lost value.

Bitcoin is growing in popularity, and if more politicians and government officials save in the form of BTC, the risk of a ban will disappear altogether.