Common misconceptions about cryptocurrency (Bitcoin)

[Kwarkam]

As a beginner , in the digital finance space, it's vital to navigate through the endless sea of information, in this context, telling myth from truth.
There are actually numerous myths when it comes to the Bitcoin space and how it works. Here, I'll try to debunk the most common ones.

• Crypto is not affected by Traditional market: while this misconception may be a popular opinion among beginners, truth is, regulatory shifts and market sentiments can greatly influence the crypto market.

•Crypto (Bitcoin) is a 'get-rich-quick' scheme: Beginners are usually found in this school of thought. Most people think this to be true because of the results displayed by the professionals in the Bitcoin space. The increase in crypto asset prices have contributed to this fictional belief. Take note, there are risks involved, like any market.

• Crypto is for Tech wizards: As many beginners are likely to think this, it is not true. With platforms releasing better user friendly interfaces, it's become more accessible and even beginners like you can navigate the world of digital finance with ease.

• Crypto Gains are not Taxed: This is one misconception that if not addressed early can lead to disappointments later on. Fact is, they are subject to taxation in most jurisdictions. They are just like stock gains .

•Crypto doesn't have any reald world uses: Actually, they do. Other than existing as digital assets, their real world applications include payment of goods and services, like traditional currencies, and enhancement of supply chain transparency.
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Conclusion.
Personally, I think telling truth from myth, fact from fiction is a great way to enter the digital asset space. You can make the best of your efforts. It may seem like I'm saying pretty basic stuff, but I think that's the point of relating to the beginners.
I'll post more myths later on.
Good luck!

[Jawhead999]

Look, you've done a misconceptions too.

Cryptocurrency ≠ Bitcoin

[apogio]

Look, you've done a misconceptions too.

Cryptocurrency ≠ Bitcoin

In fact, according to Satoshi himself, the word cryptocurrency was good. You can see this email from Satoshi to Marti Malmi (Sirius) for further info. I haven't read all the conversation, so I apologize if they concluded that the word wasn't appropriate, but according to the email above, Satoshi said:

Someone came up with the word "cryptocurrency"... maybe it's a word we
should use when describing Bitcoin, do you like it?

[Churchillvv]

Sorry to say this, I don't really understand why newbies like to teach when they should be learning this is one big mistake I never did. instead of saying things and then it will turn out that I was very wrong I will rather remain silent and learn the basics before trying to contribute.

I suggest you should also consider that.
From your perception your absolutely correct with your led down misconception about Bitcoin and the cryptocurrencies (including shitcoins) at large but believe me as time goes on you will then to find out that you where wrong in some point. Although you're making good points too but for me I think it's not time to teach rather you should spend more of you time visiting the learnmeabitcoin.com website https://learnmeabitcoin.com/ to have background knowledge of Bitcoin including the technical related knowledge of Bitcoin.

[SatoPrincess]

Welcome to the forum OP, I like your enthusiasm towards contributing to the forum. I would suggest you do proper research on a topic before posting so you don’t give wrong information. Also practice how to use the forum search engine so you don’t create topics that have been discussed before:
Bitcoin Myths

[Lucius]

~snip~
• Crypto Gains are not Taxed: This is one misconception that if not addressed early can lead to disappointments later on. Fact is, they are subject to taxation,  They are just like stock gains .

The answer to this question, however, depends on where the investor lives - because in some countries, income tax does not have to be paid if certain conditions are met. In some EU countries, you do not have to pay tax in the case of selling cryptocurrencies if more than 1 or 2 years have passed since their purchase.

Also, if someone buys and sells cryptocurrencies in a way that leaves no paper trail, why would they pay taxes on something that their country doesn't even know exists? Don't get me wrong, I will pay taxes on what I can't avoid, but if someone lives in a country of high corruption and crime, I don't see why they would additionally finance corrupt politicians instead of enabling themselves a better life.

[Kwarkam]

While some people may think that I'm saying Bitcoin= cryptocurrency, I'm actually talking about cryptocurrency but Bitcoin as the context. If that makes any sense.

[teamsherry]

Sorry to say this, I don't really understand why newbies like to teach when they should be learning this is one big mistake I never did. instead of saying things and then it will turn out that I was very wrong I will rather remain silent and learn the basics before trying to contribute.

I suggest you should also consider that.
From your perception your absolutely correct with your led down misconception about Bitcoin and the cryptocurrencies (including shitcoins) at large but believe me as time goes on you will then to find out that you where wrong in some point. Although you're making good points too but for me I think it's not time to teach rather you should spend more of you time visiting the learnmeabitcoin.com website https://learnmeabitcoin.com/ to have background knowledge of Bitcoin including the technical related knowledge of Bitcoin.

Mate quite saying shit, just because you've got a full member account doesn't mean you know shit even tho it's a sign you've been here long enough, I hate seeing post like this, instead of saying this rubbish actually contribute if you claim to know than been a critic, he is a newbie doesn't mean he doesn't know anything, if there is something wrong with the post show seniority by correcting.

While some people may think that I'm saying Bitcoin= cryptocurrency, I'm actually talking about cryptocurrency but Bitcoin as the context. If that makes any sense.

Next time I think it's better you use the word bitcoin and not cryptocurrency cause that is kind of general, unless you were referring to all the cryptocurrencies, to many of us old folks cryptocurrency is not bitcoin but bitcoin is cryptocurrency. If that makes any sense to you.

[ImThour]

Bitcoin = Open source P2P money
Crypto = digital currency

Crypto is not Bitcoin. You seem to include Bitcoin in Crypto, maybe because it's listed with many of the other shitcoin on various exchanges but that doesn't change the fact that Bitcoin is not Crypto. Bitcoin is (as said by the community) Open Source P2P money. You do not need exchange accounts to transfer Bitcoin from One account to another. The privacy you get is not provided by all the Cryptocurrencies.

[PrivacyG]

Bitcoin = Open source P2P money
Crypto = digital currency

Crypto is not Bitcoin. You seem to include Bitcoin in Crypto, maybe because it's listed with many of the other shitcoin on various exchanges but that doesn't change the fact that Bitcoin is not Crypto. Bitcoin is (as said by the community) Open Source P2P money. You do not need exchange accounts to transfer Bitcoin from One account to another. The privacy you get is not provided by all the Cryptocurrencies.

I understand but I also do not.

I realize there is a difference between Bitcoin and Doge.  But I also think they are similar enough to be considered both part of the same category of digital Currencies, known as Crypto Currencies.

At that point we can also start saying Monero and Bitcoin are not Cryptocurrencies which I really believe is not true.  Metals do have differentiating properties.  Some of them are more useless than others for specific use cases.  It does not make two distinct metals non metals though just because one of them provides better transfer speed of electricity.

Altcoins have started from Bitcoin.  Doge lets me transfer from one Wallet to another with no need for an Exchange account.  Monero provides me more Privacy than Bitcoin.  Is Monero then more Bitcoin than Bitcoin because it is Open Source and offers even more Privacy?

In this attempt of aggressively separating Bitcoin and the rest of the Cryptocurrencies I think a huge unhealthy confusion is created.  It is weird to read the way you classify Bitcoin versus Crypto.  Bitcoin is Open Source money and Crypto is digital Currency?  Money is Currency.  Bitcoin is digital.  So Bitcoin is Open Source digital Currency and Crypto is Digital Currency but they are different?  It makes no sense.

Makes more sense to separate them by saying Bitcoin is Decentralized while other Cryptocurrencies are not.  Bitcoin is Open Source while others are not.  But there are Coins which are Decentralized and Open Source too.  Like Monero.  What category do Bitcoin and Monero fall in?

[Benedictare]

   There are a lot of common misconceptions about Bitcoin,those criticizing says Bitcoin is used in illegal activities, do not work as a currency, it's votality and consumes more energy.

   People say's all cryptocurrencies are the same with high returns, blockchain is safe and secure and that all stable coins are supported by US dollars also that Bitcoin has no intrinsic value , Bitcoin can't be hacked by physical asset like Gold.
   Blockchain cryptocurrency and digital asset are the same ,gains or investment are tax free,and buying Bitcoin is based on guess investment looking for big gains.  Bitcoin is made to make payments without base on traditional ways

[Darker45]

Bitcoin = Open source P2P money
Crypto = digital currency

Crypto is not Bitcoin. You seem to include Bitcoin in Crypto, maybe because it's listed with many of the other shitcoin on various exchanges but that doesn't change the fact that Bitcoin is not Crypto. Bitcoin is (as said by the community) Open Source P2P money. You do not need exchange accounts to transfer Bitcoin from One account to another. The privacy you get is not provided by all the Cryptocurrencies.

My opinion is that Bitcoin is cryptocurrency. It is a cryptocurrency. It uses cryptography and it is a currency. This is probably the reason why Satoshi didn't find anything wrong with calling Bitcoin cryptocurrency. As a matter of fact, Satoshi encourages the use of the term cryptocurrency to refer to Bitcoin.

However, while Bitcoin is cryptocurrency, cryptocurrency is definitely not Bitcoin. It's like a bird and a crow. A crow is a bird but a bird isn't necessarily a crow.

Bitcoin is itself both an open-source P2P money and a digital currency.

[Text]

For me, Bitcoin is currently the most well-known cryptocurrency, given its growing ecosystem. With the rise of crypto, especially its increasing popularity, it is no longer isolated from traditional market influences, especially regulatory shifts.

Correct, they should stop using Bitcoin as a "get rich quick" scheme because they also need to be aware of the risks involved. Managing expectations and understanding that crypto investments entail uncertainties can prevent disappointment in the long run.

As for tech wizards, no matter how user-friendly or accessible the interfaces of these platforms are, if they lack knowledge of the basic concepts of blockchain and cryptocurrency and fail to understand the processes, it won't make a difference.

In my understanding, in some other countries, taxes are imposed on crypto assets, but if that happens in our country, I won't declare mine. The tax contributions I make to traditional transactions are sufficient.

[Zlantann]

• Crypto is not affected by Traditional market: while this misconception may be a popular opinion among beginners, truth is, regulatory shifts and market sentiments can greatly influence the crypto market.

Many people have this misconception that Bitcoin I not connected to the global economy and this is not the case. Economic policies in mainly the US such as interest rates and regulatory policies affect the performance of Bitcoin and other cryptos. We also saw how the war in Ukraine affected the global economy which also had a ripple effect on the Bitcoin market. Bitcoin can also defy global economic predictions or situations like we saw during the COVID-19 pandemic when the currency rose even when the global economy was in shambles.

Sorry to say this, I don't really understand why newbies like to teach when they should be learning this is one big mistake I never did. instead of saying things and then it will turn out that I was very wrong I will rather remain silent and learn the basics before trying to contribute.

There are no restrictions placed on newbies from creating threads or contributing to the forum. You don't also expect others to follow your path of keeping silent. Some newbies might be new in Bitcointalk but they have more experience in the crypto space than most of us. You might not find the thread helpful but it might be beneficial to someone else. Newbies should be corrected and not criticized because they need support and assistance.

[Queentoshi]

Sorry to say this, I don't really understand why newbies like to teach when they should be learning this is one big mistake I never did. instead of saying things and then it will turn out that I was very wrong I will rather remain silent and learn the basics before trying to contribute. 

Some newbies to the forum do not consider themselves as total newbies, there is sometimes the believe that the knowledge they have before joining this forum is enough to introduce something new to members of the forum. Then also, some newbies are not really newbies, they know about bitcoins but are just new to the forum. What irritates members of the forum is when a clear newbie is trying to act very crypto educated.

However, while Bitcoin is cryptocurrency, cryptocurrency is definitely not Bitcoin. It's like a bird and a crow. A crow is a bird but a bird isn't necessarily a crow.

Whenever and wherever cryptocurrencies are mentioned and talked about, the first thing that comes to mind is Bitcoin.

[Viscore]

Bitcoin = Open source P2P money
Crypto = digital currency

Crypto is not Bitcoin. You seem to include Bitcoin in Crypto, maybe because it's listed with many of the other shitcoin on various exchanges but that doesn't change the fact that Bitcoin is not Crypto. Bitcoin is (as said by the community) Open Source P2P money. You do not need exchange accounts to transfer Bitcoin from One account to another. The privacy you get is not provided by all the Cryptocurrencies.

My opinion is that Bitcoin is cryptocurrency. It is a cryptocurrency. It uses cryptography and it is a currency. This is probably the reason why Satoshi didn't find anything wrong with calling Bitcoin cryptocurrency. As a matter of fact, Satoshi encourages the use of the term cryptocurrency to refer to Bitcoin.

However, while Bitcoin is cryptocurrency, cryptocurrency is definitely not Bitcoin. It's like a bird and a crow. A crow is a bird but a bird isn't necessarily a crow.

Bitcoin is itself both an open-source P2P money and a digital currency.

Bitcoin is a virtual currency secured by cryptography and follows a peer to peer transaction that makes it highly different from a fiat, hence bitcoin is a cryptocurrency. So when others prefer to say cryptocurrency rather than bitcoin, or vice versa, I think that is reasonable enough most especially that bitcoin is the king of cryptocurrency. Altcoins are considered cryptocurrencies, as well as bitcoin and shitcoins in the market that never have a long term value in the market.

[SatoPrincess]

Some newbies to the forum do not consider themselves as total newbies, there is sometimes the believe that the knowledge they have before joining this forum is enough to introduce something new to members of the forum. Then also, some newbies are not really newbies, they know about bitcoins but are just new to the forum. What irritates members of the forum is when a clear newbie is trying to act very crypto educated.

And still they wonder why newbies are “criticized” or “attacked” by older members. Acts like these only creates suspicion as to whether the person is actually a newbie or an alt. I’d argue that this user is not new to the forum, some may hide under the umbrella of “new to bitcointalk but not new to bitcoin” but we all know these topics are created for merits.

[Darker45]

However, while Bitcoin is cryptocurrency, cryptocurrency is definitely not Bitcoin. It's like a bird and a crow. A crow is a bird but a bird isn't necessarily a crow.

Whenever and wherever cryptocurrencies are mentioned and talked about, the first thing that comes to mind is Bitcoin.

And rightly so, because Bitcoin is the first cryptocurrency, the most appreciated and trusted; the one that is most widely adopted and accepted by individuals, businesses, institutions, and even countries; the one that is truly decentralized.

I guess some Bitcoin supporters started to dissociate Bitcoin from cryptocurrency during the time when the crypto market has grown big and wide and already includes all kinds of centralized shitcoins that are actually a disgrace to the technology. They probably don't want to call Bitcoin crypto because Boobcoin and Beibercoin are also crypto. Surely, they can't be categorized together. That would be an insult to Bitcoin.

But Bitcoin is the genuine and original crypto. The rest should be the ones to be called with a different name.

[hd49728]

And rightly so, because Bitcoin is the first cryptocurrency, the most appreciated and trusted; the one that is most widely adopted and accepted by individuals, businesses, institutions, and even countries; the one that is truly decentralized.

Bitcoin is unique and Bitcoin # Cryptocurrencies # Altcoins.

I guess some Bitcoin supporters started to dissociate Bitcoin from cryptocurrency during the time when the crypto market has grown big and wide and already includes all kinds of centralized shitcoins that are actually a disgrace to the technology.

Many developers created their altcoins and said their altcoins are Bitcoin killers but after one or some years, there "Bitcoin killers" cryptocurrencies are dead.

Cryptocurrencies Historical Snapshots with many top altcoins in the past now are dead.

But Bitcoin is the genuine and original crypto. The rest should be the ones to be called with a different name.

A warning that Bitcoin forks are not Bitcoin. They are altcoins but want to borrow Bitcoin as part of their names to attract investors.

How many Bitcoin forks are there?

[PrivacyG]

I guess some Bitcoin supporters started to dissociate Bitcoin from cryptocurrency during the time when the crypto market has grown big and wide and already includes all kinds of centralized shitcoins that are actually a disgrace to the technology. They probably don't want to call Bitcoin crypto because Boobcoin and Beibercoin are also crypto. Surely, they can't be categorized together. That would be an insult to Bitcoin.

I disagree.  They can be categorized together generally as Cryptocurrencies even if other than Bitcoin most others are Shit Coins.

Why do we call a local very small scammy business a 'business' if Amazon exists?  They are both businesses, even though one of them is a disgrace.  I understand the hatred, but we can not lie to ourselves.  They are Cryptocurrencies whether we like it or not.