The problem with Bitcoin is that people blindly follow whatever has been circulated about it. The reason behind this blind trust is its unbelievable success in a short span of time. Top 5 Common Myths and Misconceptions about Bitcoin.
The power of this currency has outsmarted the logic or anything that is considered to intelligible and forced people to keep on trading with these false ideas. The ambiguous information is spread even by the most credible sources in the industry.
Top 5 Common Myths and Misconceptions about Bitcoin
This article is for those who want to unveil the mysterious natures of this currency and want to know the answers to some critical questions.
There will be Maximum of 21 Million Bitcoins
This is the widely acknowledged fact that there will be no more bitcoins after its production reaches to 21 million. Well, this fact is conditionally true.
With only a limited knowledge about the total number of Bitoins, traders are desperately buying to overcome demand and supply scenario that emerged with this myth.
The trust is otherwise, the Bitcoin community can change the protocol to produce more coins at anytime. So, from now on you will be executing more knowledgeable trades with better results.
You can Buy a Smaller Unit of Bitcoin
The new traders are most concerned about the capital amount required to start trading. With its overwhelming value against the fiat currencies, it makes it difficult for them to buy one coin.
You don’t have to buy a full coin; everyone can buy as low as one hundred millionth of bitcoin. Satoshi is called the smallest unit of Bitcoin, it is named after its creator; one bitcoin requires 21, 00 trillion units of Satoshis. Let’s join the fun by entering in this fortunate world with a lower amount.
A Recommended Read: How to Avoid Fake Bitcoin Wallet Scams
Bitcoins are Secure
The biggest reason that we hear to invest in Bitocins is its security. Most of us have not bothered to inquire about why it is called so. Yes, Blockchain is undoubtedly a most secured database which makes it almost impossible for hackers to steal your coins but is it all about blockchain?
No, it’s not at all about blockchain. When you see it from an objective point of view, it becomes the most vulnerable currency. Yes, digital coins don’t physically exist, they are just software which are stored on the blockchain and the traders can access their currency through a private key.
The private key makes this whole system vulnerable because if hackers get it, they can steal all your money and you can do nothing about it. These transactions are irreversible, means if someone has taken away your coins, you can’t recover them. The rate of stealing private keys is on the higher side.
Misconceptions about Blockchain
Another most misunderstood fact about bitcoin is that it is because of the blockchain technology that its value is so high. Blockchain is no more than a secure ledger or database which guarantees you a foolproof security of your data. It has nothing to do with the value of the currency. Blockchain is responsible for storing the records of all the transactions carried out throughout the globe. Blockchain is not the property of Bitcoin, it has been used by thousands of business now a days.