Get the Facts on Bitcoin – Debunking the Myths

Apart from the pandemic, the most talked about these two years has been bitcoins. Bitcoin buyer are the first digital currency ever created. The launching of bitcoins had put the entire world into a frenzy where there were many people who were straight up denying the existence of such a thing and others were still considering the currency as a joke. However, everyone was proved wrong when in the late 2010s it finally started to get the recognition it deserves. People understood the value of bitcoins and the purpose behind their creation.

Since this was a fairly newconcept, we saw many rumours and myths about the digital currency which started to affect its overall value. In addition to this, it certainly did not help that where there were fans there were also some anti-fans. These anti’s were hell bent on proving to the world how bitcoins were bad for them. There are many claims made about them.

Bitcoin Facts And Myths – Don’t Be Left In The Dark!

In this article, we will be debunking a few common claims made by them discrediting bitcoins. Read on to know more in detail!

  • Bitcoin is damaging the environment

One of the many concerns that people have had over the years is that mining bitcoins has caused significant damage to the environment. The only way to have more bitcoins in circulations in the environment has resulted in several implications. Mining requires solving complex computer problems which also requires a lot of energy consumption.

The initial mining of bitcoins was not as intensive however, as time grew mining become more complex. Hence, most people believe that this has been adding to the pollution problem. It does not involve more energy consumption than other internet companies. While there is a problem, it is not as grave as to put the entire blame on bitcoins mining.

  • Bitcoins Are Used for illegal purposes
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One of the most common myths about bitcoins has been that they are used for illegal purposes. The main backbone behind bitcoin is that they thrive on anonymity as well as transparency. One might wonder how can they achieve both. Well, it is quite simple, bitcoins work on the blockchain technology that maintains a public ledger to help keep track of the transactions.

As the name suggests, the public ledger is accessible to all meaning that everyone can see the transactions involved. However, despite this, some people believe that bitcoins are almost all the time used for illegal purposes. As we can clearly understand that is not true owing to the public ledger. Any authority can log on and check the ledger for transactions.

  • Bitcoin have no real-life value

To understand this let us go back a little in history. Historically people have used barter exchange as a means of their livelihood and also providing for their families. However, in recent years we see that barter exchange dwindled into more transactions involving metals like gold and silver. You might think how did this come about. Gold and silver did not have any value until humans put a value on them. The same ideology is used for bitcoins.

They do not have value until we put a number on them. Therefore, it is wrong to say that bitcoins have no value. This might have been true in the initial years after the launch of bitcoins but in recent years we have seen many governments adapting to the value of bitcoins as well. El Salvador has been the first country to accept bitcoins as a legal tender of money following suit many countries now recognize bitcoins as an effective asset class. This means that the earnings of trading and holding are now taxable under the law.

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Conclusion

So, these were a couple of myths you needed to know if you are into the field of Bitcoin investment. Many others threaten the whole integrity of the institution of digital currency. The same is not true. Digital currencies are the future of the finance world and we will find many experts also backing the same claim. trustpedia.io enEspañol is one platform where you can trade bitcoins safely and securely.

 

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