What lies about Bitcoin have scared countless people into regretful actions?

British Prime Minister Benjamin Disraeli once said, "There are three kinds of lies in the world: lies, terrible lies, and statistics".

Bitcoin is often associated with various lies and misunderstandings. The following 10 are the most common misunderstandings we have collected.

01. Bitcoin Funds Terrorism

You know who is funding it Terrorism? Terrorists and terrorist sympathizers.

If you want to blame a currency, think of the U.S. dollar, because the U.S. dollar, relative to other currencies, has been used to fund wars, proxy wars, bombings, hijackings, and insurgencies.

In 2016, Europol found no evidence that terrorists used cryptocurrencies to fund their activities. This is not to say that the use of cryptocurrencies to finance terrorist activities has not happened and will not happen in the future. Cryptocurrency, like the U.S. dollar and other fiat currencies, is just a medium of exchange. We cannot put all the responsibility on the currency.

02. Bitcoin is another Tulip Mania

swept the Netherlands in the 17th century "Tulip Mania" is always used in conjunction with "Bitcoin Mania". Tulip mania caused the price of tulip bulbs to skyrocket, reaching 4,600 florins. After the bubble burst, the price dropped all the way, leaving only one percent of the peak.

It turns out that tulips, like shells and beautiful stones, lack intrinsic value to support such high prices. But Bitcoin is different. It is easy to divide and circulate, and the underlying blockchain technology ensures the decentralization of Bitcoin and the non-tamperability of transactions.

In "What is the Essence of Virtual Currency Value?" 》In the article, we talked about the essence of virtual currency being consensus. As more and more people understand Bitcoin and blockchain technology, the number of groups that have a consensus on Bitcoin will increase.

03. Bitcoin is mainly used for illegal purposes

This statement was made in 2013 And that may have been true before, but with the crackdown on the "annet" and the closure of the "Silk Road", the vast majority of Bitcoin transactions today are for legitimate purposes.

Still, that doesn’t stop the mainstream media from coming up with this old misconception from time to time, usually accompanied by the picture above.

04. Bitcoin can be hacked

Bitcoin exchanges and cloud-based wallets can theoretically be hacked, just like anything else connected to the internet. However, the underlying code of the Bitcoin blockchain cannot be broken by hackers. Bitcoin has been more thoroughly stress-tested than any other code before it.

If you are worried about your coins being stolen, you can use a mainstream wallet with your own private key instead of depositing it on the trading platform.

05. Bitcoin wastes too much energy

During the Bitcoin mining process , which requires a lot of energy consumption. Not as much as reported, but every watt is worth it.

Rather than delving into lengthy technical explanations, here are relevant facts to ponder: Bitcoin mining consumes one-third less energy than the U.S. Christmas lights consume each year.

One study estimates that Bitcoin uses 0.8 to 4.4 terawatt hours (1 terawatt hour TWh=1000GWh=10^6 MWh=10^9 kWh) per year, spent on mining and recycling The energy on gold is 138 terawatt hours, and the global banking system spends 650 terawatt hours per year. Compared with these industries, the energy consumed by Bitcoin is almost negligible.

06. Conclusion

Although Bitcoin has been developed for more than ten years and blockchain technology has been recognized by countries around the world, there are still lies and misunderstandings about Bitcoin Words such as “Bitcoin is a Ponzi scheme” have never stopped appearing in various media from time to time.

In addition to the 5 common misunderstandings mentioned above, what other misunderstandings do you know about Bitcoin? Welcome to leave a message at the end of the article.

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