Common Misconceptions About Bitcoin

[HustleZ]

Hi hope you guys are well. Recently I have noticed around me that people have alot of Misconceptions About Bitcoin,  Especially Newbies who are new to Bitcoin. Bitcoin is surrounded by myths and confusions that might confuse Beginners. So I thought I would make a thread busting some of these Misconceptions. Hope you Learn Something from a new user like Me.
The most common Misconceptions are that:

"Bitcoin is Anonymous"
That's the most common Misconception people have. And people even include this point in convincing other people to invest in Bitcoin but That's not True. It's Pseudonymous meaning people still can track your transactions by linking it to your identity because Every transaction is recorded on the blockchain (a public ledger).

"Bitcoin Wastes Electricity"
I don't know about you but I've heard many times from people around me that Bitcoin Wastes Electricity as it uses too much in Mining. But it actually is the way Bitcoin's network remain secure and prevent the double-spend problem. The energy it uses makes Bitcoin reliable and impossible to hack. Also if you think Bitcoin Wastes Electricity then there are many renewable energy sources most of the miners can use like Solar panels. But compared to the Electricity Banks use it is significantly small and not that extreme as hater make it seem.

"Bitcoin has no Intrinsic Value"
People mostly say that Bitcoin is not supported by Any Government or gold so it's not reliable and has no value. But Bitcoin's actual Value comes From

• It's Scarcity (only 21million Bitcoins will ever exist)
• It's Decentralisation (no one controls it)
• It's usefulness as a borderless form of currency and Censorship resistance which traditional currencies cannot offer

"Its Only used by Criminals"
This is an old myth used by people in FUD campaigns and defamation of Bitcoin. While Bitcoin was used in criminal activities in the early days, today the majority of Bitcoin activity is legal. Infact, Traditional Currencies are used in far more illegal activities. But a plus point in Bitcoin is that Governments can track transactions much more easily than cash and that will make catching the crime more easier.

"Bitcoin is Expensive To Buy"
People think by buying Bitcoin means Buying a whole Bitcoin and they don't buy because they don't have money for buying a whole Bitcoin. The truth is you can buy fractions of Bitcoin called satoshis (divisible into 100 million) you can buy as little as a $1.

[Ambatman]

"Bitcoin is Anonymous"
That's the most common Misconception people have. And people even include this point in convincing other people to invest in Bitcoin but That's not True. It's Pseudoanonymous meaning people still can track your transactions by linking it to your identity because Every transaction is recorded on the blockchain (a public ledger).

You right on the not being anonymous but Bitcoin is Pseudonymous not pseudoanonymous
I thought it was a typo but your explanation showed otherwise
Pseudonymous in the sense that it is not linked to your real world identity
But your alias called public address. Just like my pseudonym here is Ambatman.

While Bitcoin was used in criminal activities in the early days, today the majority of Bitcoin activity is legal

No, Bitcoin was used for various activities by different people including Bad actors doesn't mean it was a criminal den then
People still use it for criminal activity like any other form of money was and are still being used. 

[tbct_mt2]

I really don't think you need to write this topic with your own words as you can write something inaccurate.

There are many available education threads and websites talk about Bitcoin misunderstandings.

10 Bitcoin myths debunked.

If you want to debunk more Bitcoin myths and fuds, you can learn from another website.
https://endthefud.org/

Debunk myths about energy and environment.
Debunking the "Bitcoin is an environmental disaster" argument

[Charles-Tim]

Bitcoin is only used by criminals
This misconception was in the past. Even the United States now has bitcoin reserve. Many other countries are planing to do that. Blackrock and many other countries have bitcoin ETF now. Many companies like Strategy and Metaplanet are now accumulating bitcoin. Anyone that says bitcoin is used by criminals today does not know what is going on in the world.

[nemesis_incarnate]

Bitcoin is only used by criminals
This misconception was in the past. Even the United States now has bitcoin reserve. Many other countries are planing to do that. Blackrock and many other countries have bitcoin ETF now. Many companies like Strategy and Metaplanet are now accumulating bitcoin. Anyone that says bitcoin is used by criminals today does not know what is going on in the world.

And it's good to see it being that way.

BTC is one of the coins, if not the only one, that deserves adoption on all fronts, on lower and higher levels alike.

[HustleZ]

I really don't think you need to write this topic with your own words as you can write something inaccurate.

There are many available education threads and websites talk about Bitcoin misunderstandings.

10 Bitcoin myths debunked.

If you want to debunk more Bitcoin myths and fuds, you can learn from another website.
https://endthefud.org/

Debunk myths about energy and environment.
Debunking the "Bitcoin is an environmental disaster" argument

You're right, many threads and websites already cover Bitcoin myths but I just answered some that I came across myself thinking I would contribute something. I just summarised it to make it easy to read and save people's time. I think it will be easier for Newbies who just joined the forum to learn about these and not fall into these Misconceptions. But from now ill try to post something that has not been posted before. Thanks

[m2017]

"Its Only used by Criminals"
This is an old myth used by people in FUD campaigns and defamation of Bitcoin. While Bitcoin was used in criminal activities in the early days, today the majority of Bitcoin activity is legal. Infact, Traditional Currencies are used in far more illegal activities. But a plus point in Bitcoin is that Governments can track transactions much more easily than cash and that will make catching the crime more easier.

Here there should be a durgen slogan: Bitcoin is used not only for criminals.

If we follow the myth that bitcoin is used in criminal, then why do some countries, like the US, keep reserves in bitcoin? To use for criminal purposes? Why not use such rhetoric against pseudo-arguments about criminalization of bitcoin?

[Josefjix]

These you mention are all the misunderstanding by newbies and not regular bitcoin user, if you are new then these skeptic question comes up but does not mean its the misconception of bitcoin. I could remember the first time i came into the game, i was told to buy bitcoin with Fiat then sell to Fiat, but was wondering who could buy from me.

With the current bitcoin popularity, all these are not an issue, come into the industry and get to know more and be free.

[Boiboi20]

Bitcoin is only used by criminals
This misconception was in the past. Even the United States now has bitcoin reserve. Many other countries are planing to do that. Blackrock and many other countries have bitcoin ETF now. Many companies like Strategy and Metaplanet are now accumulating bitcoin. Anyone that says bitcoin is used by criminals today does not know what is going on in the world.

Bitcoin is only for criminals thing is old news yeah maybe in the early days it was used that way but now it is a completely different story countries are starting to hold bitcoin reserves big players like black rock have ETFs and companies are stacking it on their balance sheets truth is criminals still use cash way more than bitcoin if someone still says it is only for criminals they are just not paying attention to what is actually happening.

However the idea that bitcoin is only for criminals is really outdated in the every early day some people did use bitcoin on dark market because it was new hard to track at the time and outside of the banking system but that is not the case anymore today bitcoin transactions are recorded on a public blockchain that anyone can use which actually makes it easier to trace than cash that is why law enforcement has been able to track down and even recover funds from criminal cases involving bitcoin.

[yamin_galib]

Bitcoin is not perfect and it has its rather specific advantages which the traditional money cannot offer. The one concerning people believing they should purchase an entire Bitcoin is just so true, many people even new ones would hesitate since they would feel it is too expensive. Busted myths are highly essential because most beginners will now make better decisions rather than submitting to fear and doubt.

[DiMarxist]

In everything there is an advantages and disadvantages and I didn't see those points you made mentioned are misconceptions but disadvantages of bitcoin. If the miner is using solar system which I saw recently that solar farm can be used to mine and with that you are not wasting electricity. Bitcoin is too cost to buy and should be depending on the amount your want to. You can set DCA approach to acquire it gradually until you acquire a good number.
Bitcoin is an internet currency (digital currency) and if bitcoin is a currency then criminal elements can make use of it the way they use local currency. And you have to know that US government have the highest acquisition of bitcoin in the world. So I see the opposite of all your points.

[Ronsbit]

The first time I heard about Bitcoin, I thought it was a Ponzi or something that could crash just like other Ponzi schemes had crashed all of a sudden, but as time went on, I began to get more knowledge about it based on my research and findings, coupled with what some enthusiasts told me about it when I met with them to get more insight and lucky enough I was introduced to this platform and here and I began my journey into the bitcoin and crypto world.

As a newbie, there are lots of thoughts about Bitcoin ongoing, but I have come to realize that meeting the right people would do more good than meeting people who don't have much sound knowledge and information about Bitcoin, because they will end up getting you discouraged from moving further with bitcoin and when that happens, you just might end of not being convinced and might loose any opportunity you could have utilised at that moment.

[Ucy]

Bitcoin users can actually be Anonymous

The right words to use when describing Bitcoin anonymity feature are "Bitcoin is Anonymity friendly" or "Bitcoin users can be anonymous" . Anonymous means user's identity is hidden, and that is true for users on Bitcoin since no real names are attached to Bitcoin owners accounts, unlike the typical bank accounts. Bitcoin addresses are instead used in place of users real identities. Besides, it would be too risky to reveal Bitcoin users real identities that link to their assets on a transparent Bitcoin ledger. Thieves or bad actors could easily take advantage of that to attack the users.



Btcoin does not waste electricity

Electricity is used by Bitcoin to produce or do useful things. It's not wasted. However it depends on how Bitcoin users use electricity. Heat as mining by-product for example should be used to warm up homes in cold regions of the world or the miners should be energy efficient to minimize the possibility of wasting too much electricity by individual miners.



Bitcoin has Intrinsic Value

Parts of the intrinsic value of Bitcoin are the principles. Just like gold has intrinsic value because it can be use as ornaments, for electronics etc, Bitcoin has principles people find very valuable and have many good uses. The decentralized nature, the transparency, immutability, censorship resistant, community-driven approach, privacy/anonymity-friendly feature, trustlessness, self-custody, deflationary currency, etc, are all part of the principles or values that back Bitcoin. They are why Bitcoin is very attractive to certain people and are part of reason the price keeps going up. Besides, the Bitcoin intrinsic value are natural rights free people can take advantage of to build community or society around them and they wouldn't have to worry about abuse from tyrants while freely expressing themselves in harmless ways
 Without the values Bitcoin will just be as worth-less as fiats



Bitcoin is not used by only Criminals

Not all Bitcoin users are criminal, notwistanding,
criminals are free to use it, just as they free to use use the ocean, rainwater or sunlight, but not free to use it for crime. The Bitcoin community does not tolerate that.
And it's not a crime to use something like Bitcoin since it's built around natural rights that are actually lawful and right.



Bitcoin is not Expensive To Buy

Bitcoin is affordable for any economic class. You can actually own it for less than a dollar. And it's an investment that can earn owner more bitcoins.

[100steeze]

People think it’s just for criminals, but every single transaction is public on the blockchain.

Some call it a scam, but it’s literally just open code—no secret owner pulling strings.

They say it has no value, but that’s what people said about the internet in the early days.

A lot think it’ll make you rich overnight, but that’s how most people end up losing money.

Folks say it’s killing the planet, but a lot of mining actually uses renewable or wasted energy.

And my favorite—people believe someone controls it, when in reality it’s just a network running on rules everyone agreed to.

[fullfitlarry]

How bout the misconception that Bitcoin is not real money?

- it's not physical, so it's not "real"
- it's not back up by government, so it doesn't have any value
- its volatile, so you can't use it to buy
- it's not yet accepted worldwide, yet we can buy things using a 3rd party

So it's more of a perception than actual misconception.

[uchegod-21]

"Its Only used by Criminals"

Fiat has been in existence long before bitcoin came into the picture. Fiat has been used by criminals for a very long time and still being uses by criminals till date, why ain't they making a big deal about it? Will they ban Fiat for this reason? No they won't; Fiat is governments' property.

We have long passed that stage where we talk about the government and critics promoting misconceptions about Bitcoin, we are now in the era where governments and critics are now using Bitcoin to gain political favour.

[Patikno]

"Bitcoin is Expensive To Buy"
People think by buying Bitcoin means Buying a whole Bitcoin and they don't buy because they don't have money for buying a whole Bitcoin. The truth is you can buy fractions of Bitcoin called satoshis (divisible into 100 million) you can buy as little as a $1.

I think your use of the word "whole" is inappropriate. Perhaps you mean that people think Bitcoin can only be purchased in one unit or more than it, not the fractions, right? Because I know and often hear questions like that from people who don't understand Bitcoin, and they think the unit price is already very expensive. However, that is not the case, because Bitcoin can be purchased in fractions, or what we call Satoshi as you also mentioned.

Talking about Bitcoin's high price, this also makes people who don't understand it feel left out or too late to buy Bitcoin, and this is also a question which often asked by lay people to me. So, I usually tell them that it is never too late to buy Bitcoin, because there will always be people who feel too late to buy it. Even around 2010, there was a person who felt that he/she missed out on buying Bitcoin, even though compared to today, the price difference was very large back then. So I think we can share this with people who need an answer.

Regarding the person who felt late in 2010, he was actually a member of this forum, and I found out about it from the following source : Bitcointalk.org @KiaKia - You still have time

[tabas]

"Bitcoin Wastes Electricity"
I don't know about you but I've heard many times from people around me that Bitcoin Wastes Electricity as it uses too much in Mining. But it actually is the way Bitcoin's network remain secure and prevent the double-spend problem. The energy it uses makes Bitcoin reliable and impossible to hack. Also if you think Bitcoin Wastes Electricity then there are many renewable energy sources most of the miners can use like Solar panels. But compared to the Electricity Banks use it is significantly small and not that extreme as hater make it seem.

It came from Elon that Bitcoin is wasting so much energy because of mining. How he care about nature and the environment when there are so much manufacturers and factories that don't even know how to properly dispose of their waste? And they're even wasting more energy than mining. There are a lot of mining farms that uses green energy even before he has tackled about it wasting energy and should use green energy for mining. So, before he has criticized it, the owners of the mining farms have been doing it already.

[Miles2006]

"Bitcoin has no Intrinsic Value"
People mostly say that Bitcoin is not supported by Any Government or gold so it's not reliable and has no value. But Bitcoin's actual Value comes From

• It's Scarcity (only 21million Bitcoins will ever exist)
• It's Decentralisation (no one controls it)
• It's usefulness as a borderless form of currency and Censorship resistance which traditional currencies cannot offer

Over the years viewing past history bitcoin had no supporter and as we can see during the early days most wealthy businessmen talked bad about bitcoin yet bitcoin has gotten so much value within the period of time. Some might judge the price fluctuation as a result of hype definitely the price is not stable making bitcoin value unstable. The fact bitcoin can’t be controlled seems as a treat so I don’t blame any government going against bitcoin but, no matter what irrespective of their decision concerning bitcoin, the coin will still gain more value.

"Bitcoin is Expensive To Buy"
People think by buying Bitcoin means Buying a whole Bitcoin and they don't buy because they don't have money for buying a whole Bitcoin. The truth is you can buy fractions of Bitcoin called satoshis (divisible into 100 million) you can buy as little as a $1.

This method is called the dca, an investor can buy bitcoin using the amount available either small or big. All what they need is a good management and a long term plan, no doubt bitcoin is expensive although if a newbie is willing to buy and hold they should see this time as an opportunity, if waiting for a lower price they might not see bitcoin dip like previous times instead buy consistent gradually.

[Obim34]

Another misconception about Bitcoin which some may not take.

Bitcoin won't replace Fiat - don't just think about it. As long there is government, fiat remains.

Most persons mostly newbies over exaggerate Bitcoin potentials, most times my perception about Bitcoin mostly drives me into investment choice alone, yield and returns, the idea of issuing as a world currency don't fit into my prospect.