7 Biggest Bitcoin Myths

Written by

Tamara T.

Crypto Analyst

Bitcoin is experiencing epic popularity in the crypto market. While many people already use BTC for regular transactions, others still believe in myths about the pioneer cryptocurrency. Many misconceptions about Bitcoin overwhelm customers, so we should discuss their merits.

Since truth is stranger than fiction, we want to debunk the top seven Bitcoin myths. So, what are you waiting for? Read this review and find out more about debunking common Bitcoin myths… 
 

Myth #1: Bitcoin Energy Myth: Bitcoin Mining Has a Big Carbon Footprint

Digiconomist reports that BTC mining carbon footprint equals the one of Colombia’s.

This looks like a bad thing but lacks real evidence. According to the results for 2018, Colombia was in the moderate zone when it comes to the level of carbon footprint, ranking 45th compared to the biggest polluters in the world. 

Colombia had 0.4% of the global carbon emissions in the same period, while China's carbon exposure was 150x bigger. The same worked for countries like the U.S. and Poland. It is worth saying that natural gas flaring comes with a 10X greater carbon footprint than Bitcoin mining. At the same time, it doesn't bring any benefits unless the excess energy is somehow used. 

As for the most recent BTC's footprint figures, you can see more details below.
 

Bitcoin Myths: Bitcoin Footprint
Annualized Total Bitcoin Footprints. Source: digiconomist.net

 

Myth #2: Bitcoin Energy Consumption Myth: Bitcoin Increases Electricity Costs Through Mining

Bitcoin opponents insist that Bitcoin boosts electricity costs through mining. However, this is another false story from BTC haters. 

You should know that miners always look for the cheapest energy sources. This is the reason why flared gas mining has become extremely popular and has become a valuable practice among miners in countries with low electricity costs. A perfect example of this is Kazakhstan. The fact is that miners won't compete with customers’ demand for electricity. 
 

Bitcoin Energy Consumption
Bitcoin Energy Consumption Index. Source: digiconomist.net

There's another solution for those who emphasize the high electricity costs of BTC mining. Regulators can easily decide to tax miners for such an activity, and use this money to solve the climate issues. 
 

Myth #3: The Bitcoin Bubble Myth

Investors usually rely on speculation when deciding whether to buy Bitcoin. However, the most popular crypto in the world isn't a bubble just because of it.

Perhaps you don't even know what a Bitcoin bubble is.

Let's explain it.

Bubbles are economic cycles with unfeasible rises in value. They appear when investors notice prices are higher than an asset’s elementary value. You will hear that people compare Bitcoin to a not-so-popular bubble: the Dutch “tulip mania” from the 17th century. As a reminder, speculators influenced the tulip varieties' prices to burst 26-fold. After six months, these prices collapsed and never recuperated.

Just because it goes through ups and downs, we cannot say that Bitcoin is a bubble. Each time it experienced some swings, it came back and reached even higher values than ever before. This shows us the real value of the most popular cryptocurrency in the world!
 

Myth #4: Bitcoin Mining Is Bad for the Power Grid, Environment, and Vulnerable Communities.

The critics of Bitcoin's bad environmental influence never end. Some of them blame the crypto for overloading the poor infrastructure, yet this doesn't necessarily happen in real life.

We have a perfect example in a situation where  Texas miners decided to turn off their rigs during a heatwave. The possibility to shut down mining rigs for a short period matters because they can respond to electricity demands. This confirms that Bitcoin has a great impact on the mining grid and also loosens demand. 

Claims about BTC's hazardous effect on the environment are nothing new. Some studies even say the BTC exploits "economic instabilities, weak regulations, and access to cheap energy and other resources." 

While many would agree with this claim, others would argue that we should, rather, fix economic instability and improve the regulation involved.
 

Myth #5: Bitcoin Lacks Security

Bitcoin isn't secure enough. You can hear this statement among the cryptocurrencies and blockchain critics. As a confirmation of their claims, they cite several hacking intrusions on the crypto.

The truth is that Bitcoin is highly secure thanks to the constant supervision of the blockchain network. Developers behind BTC constantly work on upgrades and improvements, so the first-ever coin can become more greatly optimized for the broader community.

Bitcoin Myths: BTC Security

We cannot deny that some trading platforms experienced hacking attacks in the past, but this has nothing to do with Bitcoin as a currency. BTC works on its unique principles, and independently of any exchange or trading sites.

Bitcoin has never faced a hacking attack, but it has dealt with some software bugs in the last decade. The incident occurred in 2010, when a hacker created 184b Bitcoin in only one day. This event is now famous as the Value Overflow Incident, and you can find out more about it everywhere on the web. However, even this occasion didn't hurt the security of the most popular crypto. BTC developers solved the problem in less than nine hours and deployed the improved blockchain. 
 

Myth #6: Bitcoin is volatile and speculative

Cryptocurrencies are highly volatile assets. This is the main concern for investors looking to buy some crypto and keep it in the long run. Bitcoin haters are first in the row in promoting its changeable worth. However, we shouldn't forget that BTC isn't much different from gold and bonds when it comes to volatility levels. We should also remember that gold experienced the highest volatility level right at the same time as its highest worth. 

At the moment, Bitcoin is in the same situation as gold was in the 1970s. The volatile nature of cryptocurrency cannot be a reason to deny its potential. That's why Bitcoin remains one of the top choices of investors in the worldwide markets. Still, you should exercise caution when buying crypto and keeping it in your wallets.
 

Myth #7: Bitcoin Has no Real-world Uses and Real Value

Have you ever wondered what the real use of Bitcoin is?

Still today, Bitcoin critics would like to know more about its application in practice, even though there is plenty of information about the practical aspect of Bitcoin all over the web. Its critics tend to link the first-ever crypto with illicit activities simply because they don't recognize its full/real value and scope of use.

Bitcoin is the method of payment for different transactions around the world. It has revolutionized the payment industry by allowing transactions without the participation of a middleman or payment processor. 

You should also know that BTC works as a store of value. Investors use it as a hedge to prevent inflation. The big news here is that many corporations have already acquired billions of BTC to power their asset management structure.
 

Crypto Regulation USA
Crypto-Currency ACT 2020 Classification. Source: coinfirm.com

We could also take a closer look at Bitcoin and cryptocurrency regulation around the world. While many countries are still in preparation for crypto regulation, some of them still consider Bitcoin a legal tender. The perfect examples are Australia and Japan, where Bitcoin is equal to property. Still, the major economies in the world such as the USA, the UK, and China have not yet legalized Bitcoin, but have already started thinking in a positive direction.

The absence of crypto regulation isn't an impediment to the operation of popular crypto exchanges where people can buy, sell, trade, or stake the desired crypto.
 

Bitcoin Myths Debunked: Conclusion

To wrap up, the cryptocurrency world is full of fallacy, and myths about Bitcoin take the lead. Whether you trust them or not is completely up to you! The fact is that money-related decisions cannot be based on hearsay. That's why you should consider the pros and cons of Bitcoin before immersing yourself in any serious investing activity.