Bitcoin is the largest cryptocurrency and it is one of the most famous cryptocurrencies in the world. The last Bitcoin’s bull run has created more hype around the currency it also promoted the incredible growth of Bitcoin and its market capitalization of over $700 billion which is the greatest record for a cryptocurrency as well as any asset to reach this value in just a span of 10 years.
Also, there is a surge in the number of investors who want to add BTC to their portfolios. But, it is important for new users to be familiar with BTC and the myths that are associated with virtual currency. That being said, let’s bust some popular myths about Bitcoin.
Bitcoin Doesn’t Have Value
Bitcoin is not backed by a precious asset like gold or any other physical assets for that matter. However, neither is any fiat currency that is completely under the control of the central bank and the government.
In other words, Bitcoin has value because people supported it and they believe it will have value. Also, Bitcoin has a scarce supply of 21 million Bitcoin tokens. This makes BTC resistant to the consequences of inflation and it is also is one way to control the dynamic relationship between the supply and demand.
Moreover, Bitcoin halving is another way to dilute the existing ongoing supply of BTC by halving the supply and slowing down the rate at which new Bitcoin tokens are added to the network. This event ensures that the supply is reduced every four years and it is also another principle of scarcity that has incredible importance for the Bitcoin’s bull cycle because it pushes the price to new records as the demand is growing faster than the supply.
BTC Is A Chaotic Online Game
Investing in BTC has been compared to the chaotic action in online games because Bitcoin’s price especially in the early years was so volatile. However, as Bitcoin matured and gained more followers and users it has reached a more stable position in the market especially when its market capitalization value has surpassed $10 billion.
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Bitcoin Has New Replacement
Even though there are 10,000 altcoins on the market that were developed as a competition to Bitcoin, no one has ever even come close to the success that Bitcoin has achieved. Therefore, it is highly unlikely that Bitcoin will be replaced by another cryptocurrency.
That said, the market is consistently expanding and there is an increasing number of new cryptocurrencies, which is great for the users because they are able to diversify their portfolios and choose from a wide range of options.
No Real World Application
This is again not true since Bitcoin has support from the business sector and most recently the public sector. Actually, there are over 15,000 businesses including small brands that support Bitcoin, while some of the more recognizable names are Home Depot, Overstock, Square, OkCupid, and many other companies and non-profit organizations.
So, you can actually use your BTC to make purchases in a business that operates offline and online. Also, blockchain technology which is the backbone of Bitcoin has also found application in the real world as there are many blockchain-based solutions applied to various business processes.