10 of the Biggest Lies Told About Bitcoin

As British Prime Minister national leader once averred, there area unit 3 sorts of lies: lies, damned lies, and statistics. Bitcoin is usually on the receiving finish of all, whether or not it’s exaggerated statistics regarding energy consumption or damned lies conflating it with act of terrorism. We’ve rounded up ten of the foremost pervasive mistruths and endeavored to line the record straight. consequent time somebody brings one up, send them here.

1. Bitcoin Funds Terrorism

We’ll start with the maximum asinine announcement, even though all of the entries on this list are pretty dumb. what finances terrorism? Terrorists and terrorist sympathisers. in case you need responsible a currency even though, attempt the U.S. greenback which has been used to fund extra wars, proxy wars, bombings, hijackings, and insurgencies than any other.
In 2016, Europol determined no proof that terrorists have been the use of cryptocurrencies to fund their activities. That’s no longer to say it hasn’t took place and won’t manifest. It’s telling however that the handiest human beings linking bitcoin with terrorism are governments seeking to crackdown on virtual currencies. If a first-rate terrorist attack funded by way of bitcoin were to occur, we’d never hear the cease of it. so far there’s been lots of noise but nothing to verify this declare.

2. Bitcoin is a Bubble

in which can we even begin with this one? No, bitcoin is not a bubble. It’s now not going to come back crashing down to earth and it’s clearly now not going to return to 0. We’ve lengthy exceeded the point of no go back for that to appear. That gained’t stop the B-phrase being trotted out every time bitcoin profits or sheds another $2,000 but. There might be corrections along the way – no asset in history has ever ascended in a directly line – however bitcoin is not approximately to pop. It wasn’t a bubble at $three,000, it’s not a bubble at $eleven,000, and it nonetheless received’t be subsequent week after a dozen more op-eds have posed this query.

3. Bitcoin is Volatile

For the individuals who don't savor hazard, there are absolutely less energizing resources for put resources into. By the by, the thought that bitcoin is unpredictable and should be "restrained" is confused. Massively regarded crypto resources master Chris Burniske separated this in a current slidedeck, demonstrating that bitcoin's unpredictability is presently lower than Twitter stock. There are still thrill ride days, however generally the computerized cash is euphorically quiet.

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4. Bitcoin is Tulip Mania All Over Again

In case you're not acquainted with the much-refered to instance of tulip insanity which cleared seventeenth century Holland, your web crawler of decision will outfit you with the backstory. The furor finished in the cost of a specific globule achieving 4,600 florins. From that point, the main route was down.

Incidentally tulips do not have any kind of inborn esteem and make a trash item, much the same as seashells and pretty stones. Bitcoins, then again, are anything but difficult to isolate, enduring, transportable and scarcer than tulips.

5. Bitcoin is Used by Hate Groups

We could dispatch into a long clarification in the matter of why it's ludicrous to accuse a cash for the activities of a small subset of its clients, however now and then the most straightforward reactions are ideal:

6. Bitcoin is Mostly Used for Illegal Purposes

That claim may have been valid in 2013, yet today by far most of bitcoin exchanges are for honest to goodness purposes. Chris Burniske likewise gave additional proof of this in his slidedeck which was refered to before. All things considered, that won't prevent ignorant hacks from the prevailing press jogging out this old chestnut at whatever point they can, normally joined by some variety of this picture:

7. Bitcoin is a Ponzi Scheme

A Ponzi or pyramid scheme involves older investors being paid back through the capital from new investors, until eventually the racket becomes unsustainable and the whole thing collapses on itself. The workings of bitcoin are completely transparent and its adoption and growth cannot be controlled by anyone. The price of bitcoin is determined solely by what the market is willing to pay for it, not by a necessity to pay back previous investors. Bitcoin is certainly not a pyramid scheme. Bitconnect, on the other hand…

8. Bitcoin Can Be Hacked

Bitcoin exchanges and cloud-based wallets can theoretically be hacked, just like anything else connected to the internet. The underlying code powering the bitcoin blockchain cannot be hacked however. Bitcoin has been stress-tested more thoroughly than possibly any other piece of code ever written. If you’re worried about having your coins stolen, take our advice and use a wallet which you own the keys to rather than trusting a third party.

9. Bitcoin is a Fad

You know what else was a fad? The internet and cell phones.

10. Bitcoin Uses Exorbitant Amounts of Energy

We’ve debunked this loads of times, most recently here, and Wired have also explored the matter at length. Yes, bitcoin mining uses a lot of energy – though not nearly as much as reported – and yet every watt is worth it. Rather than delve into lengthy technical explanations, here are a couple of pertinent facts to mull over: bitcoin mining uses a third less energy than is expended on Christmas lights in the U.S. each year. One study estimates bitcoin to use between 0.8 and 4.4 TWh per year. Compare this with the 138TWh per year spent on mining and recycling gold or the 650TWh expended by the global banking system annually and bitcoin looks like a model in efficiency.

To invoke an apposite quote, a lie can travel halfway around the world before the truth can get its boots on. The next time fake news defames your favorite digital currency, drop in this link and set the record straight. Bitcoin is many things but it’s none of the above.

What other bitcoin lies should have made this list? Let us know in the comments section below.

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