28 Apr
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5 Facts About Bitcoin Everyone Thinks Are True
There are lots of myths in the Bitcoin world that people think are true.
These misconceptions are usually related to its illegality or its use by criminals.
But we want to give you a good news: it is not true, and 44.3% of Bitcoin users identify themselves as “libertarian”, as you can read on this study.
5 myths on Bitcoin
So, let’s see the 5 commons facts about Bitcoin that most people wrongly believe:
1. Bitcoin will only enable tax evaders or criminals because it is anonymous.
Well, let’s answer to this once and for all…
Cash transactions have the same level of anonymity and it is up to users to follow the applicable state laws.
Also, Bitcoin is not completely anonymous as transactions are open and public thanks to the blockchain nature.
Even if the wallet owner name doesn’t appear on the ledger, once wallet owners are identified (because it is possible) they are linked to every transaction made.
2. 21 million coins are not enough
As you may know, Satoshi Nakamoto has set a maximum level of existing bitcoins, totaling 21 million, so it can never be more than that amount.
We have to remember that one Bitcoin has eight decimals instead of the two of fiat currencies, that means there are over 2 quadrillion of usable units in the bitcoin system.
So every bitcoin represents 100,000,000 of these units.
As the value of 1 BTC is rising too much to be useful for daily transactions, people is starting dealing in smaller units, such as milli-bitcoins (mBTC) or micro-bitcoins.
3. Bitcoin will be shut down by governments as it happened with Liberty Dollars
As you may remember Liberty Dollars were created to have an alternative US currency, including physical coins.
They were shut down because they resembled US currency.
But bitcoin doesn’t resemble any other currency.
Also, closing Liberty Dollars was an easy move, because there was a company and offices. Bitcoin, instead, has no leaders, offices nor tangible asset backing, so it doesn’t have the same vulnerability.
4. The Bitcoin community consists of anarchists and conspiracy theorists
As we said, the members of the Bitcoin community are mainly composed libertarians and ideological enthusiasts.
So, the greatest part of the community wants a libertarian system without any central authority.
5. Bitcoin is illegal
Even if Bitcoin was involved in the Silk Road story, it is not illegal and it is not used only by criminals.
In 2013 the U.S. Financial Crimes Enforcement Network issued a guide about decentralized virtual currencies. On this guide, “a user of virtual currency is not a Money Services Businesses (MSB) under FinCEN’s regulations and therefore is not subject to MSB registration, reporting, and record keeping regulations.”
Multicurrencies Wallet
The best way to understand how bitcoin works is trying to have it.
So, try to open an online wallet where you can store your bitcoin.
Open your free digital wallet here to store your cryptocurrencies in a safe place.