Launched in 2009 as a way for people to send money over the Internet, Bitcoin has yet to revolutionize banking and the financial services industry. The longest-running blockchain is still evolving, and the coming times are expected to prove pivotal to Bitcoin and cryptocurrency in general. Right now, the community is debating whether or not Bitcoin should be used for NFTs. Undoubtedly, we’re far from mainstream adoption, which is frustrating, to say the least. Only time will tell if Bitcoin will usher in a new technological cycle or build on that initiated with the rollout of the Internet. 

Unfortunately, massive disinformation about Bitcoin is becoming pervasive in the media, from honest mistakes to conspiracy theories. In no particular order, here are some of the most common myths about Bitcoin, accompanied by an examination of the facts to help you decide if cryptocurrency is right for you. 

#1 Bitcoin Is Totally Useless in Real Life

It might come as a surprise to find out that some people think that Bitcoin has no real utility, but it is what it is. They’re convinced that Bitcoin is useless due to a lack of understanding of blockchain technology, which enables its existence. That being said, it’s worth noting that Bitcoin can be used to pay for goods and services – you can spend your coins in an in-person setting or online. To buy Bitcoin, you’ll need an exchange where you can convert fiat currency to cryptocurrency. Bitcoin is a store of value, so it retains its purchasing power in the future. 

For some time now, crypto enthusiasts have promoted Bitcoin as a hedge against inflation, arguing that its scarcity would protect its value. The truth is that Bitcoin can’t fully protect you against economic shocks, even if it’s more “inflation-resistant” than other digital assets. But it achieves censorship resistance through a process called Proof of Work, which removes the need for a central authority (bank, business, or government agency) to monitor and manage transactions. The role of Bitcoin in addressing financial inclusion is still growing.  

#2 Elon Musk Invented Bitcoin 

In February 2021, Tesla invested $1.5 billion into Bitcoin, with Elon Musk saying it would be accepted as payment. As a result, the price of Bitcoin spiked. Even if Elon Musk has some influence over Bitcoin’s value, he’s not the creator of the popular cryptocurrency. Elon Musk himself has denied the rumors. Satoshi Nakamoto is the name of the presumed person who developed Bitcoin, authored the white paper, and created its original reference implementation. The identity of Satoshi Nakamoto isn’t publicly known, which explains why there are so many speculations. Although it’s absurd to think that Elon Musk invented Bitcoin, it’s understandable that his name was presented in a list of possible candidates. 

#3 There’s an Infinite Supply of Bitcoin 

Many people incorrectly believe that the Bitcoin supply is unlimited. As far as the number of Bitcoin tokens is concerned, there will never be more than 21 million coins. Reaching this supply limit is most likely to affect miners, yet investors could experience adverse effects as well. To control inflation, Satoshi embedded a fixed supply into the network’s code, so it’s enforced by the nodes of the blockchain. Let’s say that all Bitcoin is mined. You can continue trading and even buy a faction of a coin. Bitcoin’s limited supply keeps it scarce, so it can maintain a steady value for years to come. Bitcoin is called digital gold for a good reason. 

#4 Dogecoin Is a Type of Bitcoin 

Dogecoin is much like Bitcoin in the sense that it makes available a decentralized, secure environment free from any third-party interference as regards transactions. Nonetheless, Dogecoin is faster than Bitcoin as it takes only one minute to confirm a block, so it can process about 33 transactions per second. Experts warn that investors should proceed with caution before buying Dogecoin, deeming it highly speculative. After all, the project was started for fun, and even the creators of the coin were surprised by its current price and popularity. Dogecoin’s lack of supply capitalization means the digital asset will never become too valuable. 

#5 Bitcoin Is Mostly Used for Illicit Activities 

One of the oldest (and most pervasive) myths about Bitcoin is that it facilitates illicit activities due to its anonymity and lack of regulation. Indeed, Bitcoin has been used by malicious actors, but any form of money can be used with nefarious goals in mind. In case you didn’t already know, Bitcoin doesn’t provide complete anonymity, meaning that the transactions on the blockchain can be identified by a string of alphanumeric characters. Network participants can take a peek at the transactions, but they can’t determine the real identity of the user behind the public key. 

#6 Bitcoin Is Bad for The Environment 

More often than not, Bitcoin is accused of contributing to climate change. People are angry with cryptocurrency’s contribution to greenhouse gas emissions, even if the market encourages renewable projects. The Proof of Work process is becoming more energy-efficient, meaning that an ever-increasing number of miners are turning to solar, wind, or hydropower, as opposed to natural gas or coal. With a global shift towards renewables, mining could clean up Bitcoin’s carbon footprint. Of course, the value of Bitcoin depends on its utility, not the amount of electricity and computing power it takes to mine tokens. 

Bitcoin mining isn’t as bad for the environment as it used to be. After failing to meet its climate targets, China banned Bitcoin mining, so a lot of mining equipment was retired, eliminating energy-inefficient rigs. The market in North America is pushing towards renewable energy sources, the cost of which keeps going down. Miners want to protect themselves against emerging risks and regulatory developments by establishing renewable-powered locations. The question now is: Is this the end of the debate? Probably not. Opponents of Bitcoin will most likely discredit the recent shift in energy sourcing, but even if the conversation doesn’t end here, it will certainly become more productive. 

Conclusion 

You can read a lot about Bitcoin online, but make sure not to fall for the myths. Check to see if there’s more than one reliable source reporting about the same thing, and be careful when sharing news that elicits strong reactions.