Myths about bitcoin. Popular misconceptions (1)

The most popular misconceptions and myths about bitcoins, which cause fears in people who do not really get into the subject. Our arguments against myths. Take care of them, for possible disputes in the team and raising the level of erudition.

1. Bitcoin is something similar to other electronic money, nothing new.

All existing electronic money is tied to national currencies and is fully controlled by the state. Money in accounts can be blocked or confiscated. One of the main differences between Bitcoin and all other currencies and electronic payment systems (EPS) is decentralization. It can not be:

"Pre-print" - the number of coins is known in advance, 21,000,000 - and they appear on the network strictly according to a previously known algorithm;
Destroy - all computers on the network replace a single center, and the integrity of the chain of blocks from different types of attacks is protected by this large computer network
Change the source code without the consent of most of the community - as a condition for the appearance of a number of coins, so any other rules.
Block or arrest - bitkoyny controls only those who have direct access to the wallet. To arrest the Bitcoin purse, you must first arrest his master.

1. Bitcoins do not solve problems that are not able to solve gold and / or fiat money

The main functions of money, their internal content is a measure of value, a means of circulation, accumulation and payment. Gold and fiat money, as monetary units, are inferior in all respects to the opportunities that Bitcoin and other crypto-currencies can offer.

As a medium of circulation:

Unlike gold, bitcoins are easy to store, they are arbitrarily split into very small parts, quickly sent.
Unlike the Fiat, bitkoy are more reliable - they can not be faked, they do not wear out, they do not need to be reissued.
All transactions in BTC are transparent and anyone can see them, connected to the Internet. Therefore, the perfect payment can not be disputed, justified by the fact that "money has not come."
As a means of accumulation and saving:

Crypto-currencies have predictable and decreasing emissions
They do not have a regulatory center. To open an "account" in the Bitcoin network, no documents and permits are needed.
You can always keep your bitcoins under direct control, for example, in your home safe.
For Bitkoyn there are no state borders - it can be instantly transmitted to anywhere in the world where there is a connection to the Internet.

1. Bitcoins are not provided with anything, their cost depends on the amount of electricity expended for their generation or computing power

When we say that the currency is something secured, we mean its binding to the exchange rate with any "benchmark" asset. Spent on generating bitokoynov computing power, kilowatts of electrical energy can not be used to determine the security of their cost. The cost of bitcoins is based only on how much they are valued by people, and the higher the price, the more people will try to generate them, which in turn will lead to an increase in the complexity of generation and, as a consequence, to an even greater production difficulty.

The truth is that nothing is provided, including state currency and gold. The value and value of classical monetary units depends on several factors, the most important of which is the confidence in the issuer (the central bank), the belief that it will fulfill its obligations. But the defaults of states (refusal to pay public debt) have happened even in large economies.

Gold in the eyes of people has for more than a thousand years has a value in itself and does not require security. A similar situation develops with Bitkoyn - his guarantee is only how valuable it is for people who are ready to accept it as an exchange equivalent. The general law of supply and demand works here. The main factor determining the value of Bitcoin is its distribution and use in the economy of different countries of the world.

1. Bitcoins are illegal because they are not recognized as a means of payment

For illegal means of payment, there is a concept of money surrogates in Russia. Crypto-currencies at the moment do not belong to this category. To call them illegal is incorrect.

Following the fundamental rule that "everything is permitted," it is used all over the world by Bitcoin as a means of payment. In many countries, crypto-currencies are already officially recognized as "private money" or a financial asset that is subject to general rules of financial regulation.
By and large, Bitcoin is a convenient accounting unit, like any other currency, equivalent to the value of certain things.

1. Bitkoyny - this is a form of financial terrorism, because they only harm the economic stability of the state and the state currency

The assertion that Bitkoyn was created for terrorist purposes and the destruction of the economy, in order to harm the state foundations, is completely untrue.

Terrorism is a form of violence, and it is planned and aimed at achieving certain goals. Crypto currency is only one of the financial instruments, the application of which depends on who is in their hands.
Bitcoin technology provides alternative solutions to many financial security issues. With proper use, it can promote the development of any business and the economy as a whole.

1. Crypto currency will only facilitate tax evasion, which will seriously damage the global economy

Now, even with a large number of transactions passing through the purses of the users of crypto-currencies, the amounts that can be considered as profit and base for demanding taxes from it are in most cases extremely small in comparison with the similar turnover in national currencies.

To say that this is a way of evading taxes, and also that this will lead to the fall of civilization - is fundamentally wrong. Responsibility for this, as well as with "ordinary" currencies, rests on specific people, not technology.

Legislators of all countries are working on taxation options for transactions conducted with the help of Vitcoin. In some European countries (Germany, Great Britain, the Netherlands, etc.) operations with crypto-currencies are subject to the same taxes as in other currencies.

1. Bitcoins can be "printed" by everyone, hence they are useless

The complexity of Bitcoin mining is currently too great, besides this, it is increasing.
As you know, bitokoyny extracted not one by one, but blocks, and the reward for the block is reduced by half after every 210 thousand of extracted blocks. And if in 2009 the block size was 50 BTC, now it is 12.5 BTC, and in 2019 it will be 7.25 BTC.

Due to the introduction of innovative development equipment for mining, the total network performance has increased many times, along with the complexity. At the moment, the personal computer is not able to provide the necessary processing power. For profitable mining, investments are already needed, measured in hundreds of thousands and millions of rubles.
The usefulness or uselessness of the crypto currency is determined not by the fact that it can be printed or minted by everyone, but by whether this crypto currency will be used by people in everyday life.

1. Bitcoins are useless because they are based on unchecked / unproven cryptography

The lack of verification and unprovenness of the concept of "cryptography" is in itself an absurd assertion. The SHA-256 and ECDSA algorithms used in the working Bitcoin network are well-known industry-standard encryption standards.

1. The first users of bitcoins were unfairly rewarded

The first users of the Bitcoin system were rewarded for using and testing the as yet unused and incomprehensible technology. They received this reward for taking on the risks of losing not only time, but also personal funds. In this world, there is a lot of injustice and the reward of the first users is hardly to be discussed.

Now about 2/3 of 21 million of all coins are extracted and are located by users. If you become the owner of bitcoins in the near future, later for someone you will also be considered one of the "first users".

1. 21 million coins are not enough for all the needs of mankind

Probably, you forget that one Vitcoin represents 100 million indivisible units.

21 million coins - it's just over two quadrillion (2099999997690000) of the maximum possible units. It is assumed that by the time when the last Bitcoin is mined, the parts of the coin will be in circulation - millibots (mBTC) and microBit coils (μBTC). However, a denomination with coefficients of 1:10, 1: 100 and so on is also possible.

To be continued ...