6 Bitcoin myths debunked

Crypto used to be a thing just for cryptography nerds, but today the Bitcoin myths fly fast and loose as more and more people become aware of its influence on the global economy. Maybe you’ve heard vaguely that Bitcoin (BTC) is “becoming legit” or that more and more people are asking their financial advisors about Bitcoin allocations. 

I even ran into my elderly neighbor the other day and she asked me if she should be investing in Bitcoin. Even if you’re new to the space and you don’t know much at all, you’ve probably heard some of these Bitcoin myths—everyone has. So, here are the first things you need to know to debunk them.

Myth: Bitcoin has no value

All you have to do is understand exactly how the value of the US dollar works to know that this is a myth. The purpose of money is to be a medium of exchange, making trading easier. The social trust agreement (and the government’s guarantee) to use something as that medium is what gives money value. The only thing Bitcoin doesn’t have is a government guarantee. That doesn’t mean it’s valueless. In fact, you could argue that it’s worth, at minimum, the value of the energy used to produce it.

Myth: it’s a Ponzi scheme

This Bitcoin myth is pretty easy to debunk when you understand that literally no one owns the Bitcoin network. Even Satoshi Nakamoto, who created Bitcoin, doesn’t own it (we don’t even know who he/she/they are). The whole point of Bitcoin’s blockchain is that it’s decentralized and automated. There’s no one at the top of a pyramid getting rich.

Myth: the government will ban Bitcoin

Certainly some governments, like China, have tried to ban it. But this Bitcoin myth doesn’t hold water because governments can’t actually ban it, however much they’d like to try. Because it’s decentralized, every single node would have to be shut down, and that’s not logistically feasible. Much like BitTorrent back in the day of P2P file sharing, when everyone owns it, it can’t be shut down.

Myth: Bitcoin is for criminals

As you can watch in episode 8 of the Uncensored Crypto docuseries, Bitcoin is not just for criminals. The notorious Silk Road website (an online black market) used BTC back in the early 2010s but even though the founder of the site was sentenced to life in prison, many people hold that Ross Ulbricht was unfairly sentenced and should be released. Plus, the amount of crime that happens with Bitcoin is far, far less than the amount of crime committed using dollars.

Myth: Bitcoin is a bubble

The crypto market is a wild ride, that’s for sure. It’s not a Bitcoin myth to say that the price can swing wildly around in response to the larger market events. But, to say it’s a bubble definitely doesn’t make sense. Not when new technology is continuing to be developed on it at a breakneck pace, adoption is sky high, institutional buy-in is higher than ever, and even governments are getting in on the BTC game.

Myth: you can only get it on the dark web

Not anymore. This myth hasn’t been true for quite some time. Back in the early days—perhaps the last time you thought about BTC—it was harder to obtain. A bit of dark web surfing may have come into the picture. But today, there are easy-to-use apps and websites that comply with SEC regulations. It’s literally never been easier to get Bitcoin.

Conclusion

There are all kinds of crypto and Bitcoin myths floating around on the internet. Plus, with the meme-game in sharp form, sometimes it can be hard to see the facts plainly. But don’t worry, if you just take a bit of time, do some research, and learn, you’ll be up to speed and getting involved with very little sweat or tears.