Debunking Common Myths About Bitcoin

Bitcoin is a scam. It’s a Ponzi scheme. It’s a bubble. There’s nothing backing it.

I’ve heard all these before.

And I understand why some people are wary.

At first, many people don’t understand why bitcoin has value.

Today I’m going to give a detailed response to these criticisms.

One of the most important features of bitcoin is that large amounts of it can be safely sent from person to person. That may not sound like such a big deal, but think about that compared to a traditional money transfer.

With a traditional wire or money transfer, you always need a middleman – a “trusted party,” usually a bank. It collects fees and can block transactions for political reasons. Its software is ancient and hasn’t changed much in decades.

As a result, most of us have no choice but to keep the bulk of our cash in a risky bank.

Bitcoin and other cryptocurrencies are different. The owner has complete control of their assets. They have the “private keys” that determine ownership. A private key is essentially a really long password. It’s very secure, as long as you don’t lose it.

Cryptocurrency networks are decentralized, meaning they run on hundreds of thousands of computers across the world. I can’t imagine how a government would go about shutting them down.

Digital currencies use advanced cryptography, which provides top-notch security and transaction confirmations. Every computer in the network keeps a record of all transactions. This ledger is called a blockchain, and it’s how we make sure nobody’s cheating.

Bitcoin was the first blockchain-based currency, but since then, thousands of new coins have launched. Many of them borrowed bitcoin’s blockchain technology, which is fine since the whole thing is “open source,” or free to utilize.

Two billion dollars’ worth of bitcoin changes hands every day. This is a big part of why bitcoin has become so valuable. It’s very liquid, meaning you can trade it for cash all over the world. You can also buy goods at places like Overstock.com, Dell.com and thousands of other locations.