Bitcoin Forum
February 06, 2023, 02:10:22 AM *
News: Latest Bitcoin Core release: 24.0.1 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Do you really know bitcoin ? Here are 11 myths  (Read 558 times)
Athom (OP)
Newbie
*
Offline Offline

Activity: 48
Merit: 0


View Profile
December 28, 2013, 09:48:56 AM
 #1

1. Bitcoin is huge

For all the talk and hype, bitcoin is tiny with a total value of just $10.8 billion. That compares to the total stock of U.S. dollar at $800 billion, Colas said in a report. There's also about $4 trillion in global currency traded every day.



2. Bitcoin enables drugs and terrorism

Colas argues that bitcoin is "way too volatile" for the average drug dealer or terrorist. That's not to say that "some enterprising dealers" don't use it, but if it was widespread Colas contends its value would be "$10,000 or higher" compared to Friday morning's trading value of about $800.

3. Bitcoin is a currency

This is perhaps the most contentious observation, as bitcoin is often referred to as a "cryptocurrency." Colas offers that bitcoin is "a system much more than a 'currency'" in which holders agree to take part in a transaction of value.

Banking analyst Dick Bove may have been more to the point, where in a recent analysis he called bitcoin a "low-cost replacement for credit cards and other payment mechanisms." There are virtually no costs involved with bitcoin transactions, as opposed to wire transfers, for instance.

4. Bitcoin has never been more volatile than now

Untrue, according to a chart Colas prepared analyzing bitcoin's one-month returns and standard deviation. It actually was more volatile in May 2011, before most people even had heard of bitcoin.


5. Chinese citizens can't buy bitcoins

BTC China has been one of the most dominant exchanges for bitcoin, with nearly 10 million transactions over the past month, according to bitcoincharts. That's despite a government ban on financial institutions handling such transactions.

6. Bitcoin is not a store of value

This is an expression often given to gold and silver, and Colas said it does not apply to bitcoin. "Bitcoin may one day prove it deserves to sit alongside those assets," he said. "It isn't there yet."

7. Bitcoin is untraceable

Bitcoin transactions happen online. Enough said. (Though Colas does offer: "If you think anything you do online is secret, I can't help you.")

8. Losing anonymity will render bitcoin useless

Conversely, traceability doesn't dim bitcoin's allure, which is really in its low or no-cost transactions.


9. It's a Ponzi scheme

No, it isn't. Ponzi schemes have no other intent than to defraud. There's no evidence to suggest that bitcoin is in the same boat, despite the strong price volatility and attraction for speculators. The Federal Reserve has noted the "potentially significant positive social value" of bitcoin, Colas noted.

10. Bitcoin is "ready for prime time"

No, it isn't. As Bove, Colas and numerous others have pointed out, bitcoin won't get legit until price volatility gets tamped down and a truly safe, mainstream storage place emerges. Colas suggests banks, Paypal or Apple come up with a storage device.

11. Something better will kill bitcoin

This one doesn't get so much play, but it's worth considering. Bove has contended that being first gives bitcoin a tremendous competitive advantage, and Colas echoes that point. "There are other online money transfer products out there, of course, and more to come," he said. "The challenges will be the same for all of them: security, utility and legal compliance."

The quest to meet those challenges likely means bitcoin remains a serious story for 2014.

"I absolutely understand why there are so many bitcoin haters out there. But don't hate the player; hate the game," Colas said. "Technology is a tremendously disruptive force in society, and it knows no boundaries. It disturbs every status quo. That's what is does. Just don't make the mistake of thinking that you can reverse it by calling it a bubble."

-By CNBC's Jeff Cox. Follow him on Twitter @JeffCoxCNBCcom .

http://hereisthecity.com/en-gb/2013/12/28/do-you-really-know-bitcoin-here-are-11-myths/
1675649422
Hero Member
*
Offline Offline

Posts: 1675649422

View Profile Personal Message (Offline)

Ignore
1675649422
Reply with quote  #2

1675649422
Report to moderator
1675649422
Hero Member
*
Offline Offline

Posts: 1675649422

View Profile Personal Message (Offline)

Ignore
1675649422
Reply with quote  #2

1675649422
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1675649422
Hero Member
*
Offline Offline

Posts: 1675649422

View Profile Personal Message (Offline)

Ignore
1675649422
Reply with quote  #2

1675649422
Report to moderator
1675649422
Hero Member
*
Offline Offline

Posts: 1675649422

View Profile Personal Message (Offline)

Ignore
1675649422
Reply with quote  #2

1675649422
Report to moderator
dailycoins
Full Member
***
Offline Offline

Activity: 139
Merit: 100

Dailycoins.net


View Profile WWW
December 28, 2013, 09:54:55 AM
 #2

Great post. Thanks for sharing!

dmfree88
Member
**
Offline Offline

Activity: 109
Merit: 10


View Profile
December 28, 2013, 09:55:21 AM
 #3

so what do you think personally? Do you think if I hold on to bitcoins that someday they will be worth $10k+ each?  If they manage to continue to grow?  I dont see why they would'nt as the outbreak of scrypt mining has caused a major boom in awareness.  Interesting to think what it could be someday and hope I will have even a single bitcoin saved by then haha.

All donations Go directly to support my autistic son:
VTC: VaDUVkbX5j83UsT5r7QFjfapcZFYbzQz9x / BTC: 1BNYqjN5Hm17im9CwD9jKc8nWX3Y68Kd4N / LTC: LfNsAfd5bxuCMggrq16V9XAmUkZWZ1h1eJ /
HZKto
Newbie
*
Offline Offline

Activity: 28
Merit: 0


View Profile
December 28, 2013, 10:00:27 AM
 #4

Myth #12: It is decentralized.

No, it is centralized. And it has central authority which can steal all your BTC - https://bitcointalk.org/index.php?topic=371635
lindeanin
Full Member
***
Offline Offline

Activity: 161
Merit: 100


View Profile
December 28, 2013, 10:30:46 AM
 #5

Myth #12: It is decentralized.

No, it is centralized. And it has central authority which can steal all your BTC - https://bitcointalk.org/index.php?topic=371635

Nope, there are already indepened Bitcoin clients beside Bitcoin-qt if Bitcoin Foundation turns out to be bad, or using older versions of Bitcoin-qt
enichols
Newbie
*
Offline Offline

Activity: 7
Merit: 0


View Profile
December 28, 2013, 10:31:41 AM
 #6

I know from day one.
HZKto
Newbie
*
Offline Offline

Activity: 28
Merit: 0


View Profile
December 28, 2013, 02:31:32 PM
 #7

Nope, there are already indepened Bitcoin clients beside Bitcoin-qt if Bitcoin Foundation turns out to be bad, or using older versions of Bitcoin-qt

And how it is better than centralized banks? If your bank or government "turns out to be bad" - you can use other bank.
volrath696
Newbie
*
Offline Offline

Activity: 5
Merit: 0


View Profile
December 28, 2013, 03:08:08 PM
 #8

we need to destroy the bank corporation, no more taxes!!
qqcoins
Member
**
Offline Offline

Activity: 63
Merit: 10


View Profile
December 28, 2013, 03:10:06 PM
 #9

Taxes are bad as well as centralization
HZKto
Newbie
*
Offline Offline

Activity: 28
Merit: 0


View Profile
December 28, 2013, 03:11:37 PM
 #10

we need to destroy the bank corporation, no more taxes!!

YEAH! No more taxes! WE NEED TRANSACTION FEES!!!
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!