You’ve probably heard of bitcoin, but you might be wondering what it is, how it works, and whether you should use it to buy anything. While the concept behind bitcoin may seem simple at first, there’s more to this cryptocurrency than meets the eye. If you’re interested in getting into bitcoin and want to learn more about this new currency and the ecosystem around it, then read on to find out 10 common myths about bitcoin and why they’re simply not true.

1) Bitcoin is used mostly by criminals

Bitcoin is one of the most popular forms of currency in the world. But it is also one of the most misunderstood. There are many myths surrounding the currency, but these are often blown out of proportion or have no basis in reality. From people losing bitcoins to bitcoin being used by criminals, these are some of the top ten myths about bitcoin debunked.

2) Bitcoin is not regulated

Bitcoin is not regulated by the government because it’s decentralized and peer-to-peer. Bitcoin is not a fiat currency, meaning that it has no central issuing authority. The supply of bitcoins is mathematically limited to 21 million bitcoins and that can never change. This means that bitcoin cannot be inflated like a traditional currency.

3) Bitcoin is a ponzi scheme

There are many myths about bitcoin. It is not a ponzi scheme and it is not illegal in the United States. Many people think that if they use bitcoin then they will have their identity stolen, but there are ways to protect yourself when dealing with cryptocurrency. The most important thing to remember is that the information you share stays between you and the person who you are exchanging money with or goods with on a website like eBay or Amazon.

4) Bitcoin is not backed by anything

Bitcoin is not backed by anything, but it is still a currency. It’s just that there is no physical representation of the currency, unlike say the dollar. The way bitcoin works is that if I have one bitcoin and you give me another one, I now have two bitcoins. This type of currency has never existed before, which makes many people skeptical about its worth. But with the number of people using and trading in bitcoin increasing every day, this type of currency might be around for a long time!

5) Bitcoin is a bubble

Bitcoin is not a bubble, but instead a new technology that has the potential to change the world. It is hard to compare it to other investments because this technology is so different. But there are two key reasons why bitcoin isn’t a bubble: it’s decentralized and its supply is limited.

6) Bitcoin is too volatile

Bitcoin can be volatile, and much of this volatility comes from the fact that it is a young currency. When you put your money in bitcoin, you don’t know what the value will be tomorrow. This makes it hard to plan for the future.
That said, if you invest wisely and diversify your holdings, then there are ways to lower risk. In particular, by investing in other currencies or assets – such as gold – you can hedge against volatility and protect your portfolio.

7) Bitcoin is not scalable

Scalability is a major issue for bitcoin because of the block size limit. The current blocksize of 1MB can handle about 3 transactions per second. If the blocksize was increased to 2MB, that would allow for about 6 transactions per second and if it was increased to 8MB, it would allow for around 24 transactions per second.

8) Bitcoin uses too much energy

Bitcoin uses too much energy. It consumes more than most countries. That’s one of the top ten myths about bitcoin. The reality is that bitcoin mining requires a lot of computational power, but it doesn’t use any more electricity than a regular computer.

9) Bitcoin is a threat to the US Dollar

Bitcoin is not a threat to the US Dollar. There are many differences between the two, which includes the fact that Bitcoins will never be printed and they can’t be manipulated by a central bank. Bitcoins are created by people solving complex math problems and are limited to 21 million coins in total, which makes them deflationary. This means that as time goes on, their value increases.

10) Bitcoin is not anonymous

Bitcoin is not anonymous. The blockchain is a public ledger where all transactions are recorded and anyone can see who sent or received bitcoins from any bitcoin address. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances.