Every day about cryptocurrency know more people. And everyone sees this new technology on its own. There is a considerable amount of skeptical people, whose opinion is created under the influence of incompetent articles in the media, their own and someone else's life experience, the various guesses and assumptions about the nature, origin, further development and possibilities of Bitcoin technology.
In this article we will try to debunk the most popular at the moment, the myths o Bitcoin and other cryptocurrencies. Perhaps something will be your discovery and will shed light on some misconceptions that have formed in society.
We believe that technical difficulties associated with the use of digital money should not be the cause of these myths and other inaccurate information. Form an opinion about Bitcoin on their own. I hope that this article will help you a lot to deal with.
Bitcoin is something similar to other electronic money is nothing new.
Bitcoins don't solve problems that are not able to decide the gold and/or Fiat money
Bitcoins are unsecured, the cost depends on the amount spent on their generation of electricity or computing power
Bitcoins are illegal because they are not recognized as means of payment
Bitcoins are a form of financial terrorism, because they only hurt the economic stability of the state and the state currency
Cryptocurrencies will only facilitate tax evasion, will seriously damage the global economy
Bitcoins can "print" each, therefore they are useless
Bitcoins are useless because they are based on untested/unproven cryptography
The first users were unfairly rewarded by bitcoins
21 million coins is not enough for all the needs of mankind
Bitcoins are stored in wallet files, just copy the wallet to get more coins!
Lost coins cannot be replaced, and that is bad
Bitcoin is a giant Ponzi scheme
The idea of bitcoins will not work, because there is no way to control inflation
The community Bitcoin it geeks, anarchists, conspiracy theorists and the gold standard
Anyone with enough processing power can intercept management of the network
Point of sale merchants accepting bitcoin, impossible since it takes 10 minutes to confirm the transfer
After the extraction of 21 million coins, no one will generate units, confirming the translations
No built-in cancellation mechanism of payment, and that's bad
Quantum computers violate the security of the Bitcoin network
The generation of bitcoins is energetically costly and harmful to the environment
Store owners can't set prices in bitcoins for goods due to the unstable exchange rate
Bitcoins can be abolished by governments because they are illegal (like the Liberty Dollar) and because they are used by criminals.
Bitcoin - a scheme for quick money on the Internet or high-yield investment?
You can earn money simply by installing the Bitcoin client on your computer
- Bitcoin is something similar to other electronic money is nothing new.
All existing electronic money is tied to national currencies and fully controlled by the state. The money in the accounts can be blocked or confiscated. One of the main differences of Bitcoin against all other currencies and electronic payment systems (EPS) is decentralizing. It is not:
“Print out” the number of coins is known in advance, 21 000 000, and they appear in the network strictly with a predetermined algorithm;
Destroy all the computers in the network were replaced by a single centre, and the integrity of the block chain from different types of attacks protected by this large computer network
To modify the source code without the consent of the greater part of the community as conditions for the appearance of the number of coins, so any other rules.
To block or arrest – bitcoins monitors only one who has direct access to the wallet. To arrest a Bitcoin wallet, first to arrest his master. - Bitcoins don't solve problems that are not able to decide the gold and/or Fiat money
The main functions of money, their inner content is a measure of value, medium of exchange, accumulation and payment. Gold and Fiat money as the monetary unit, for all positions of the inferior features, which can offer Bitcoin and other cryptocurrencies.
As a medium of exchange:
Unlike gold, bitcoins are easy to store, they are arbitrarily broken down into very small pieces, quickly sent.
Unlike Fiat, bitcoin is more reliable - you can't fake them, they wear out, they do not need to reissue.
All transactions in BTC are transparent and they can see anyone connected to the Internet. So a perfect payment can't be challenged, justifying that "money didn't come."
As a means of accumulation and savings:
Cryptocurrencies have a predictable and decreasing emissions
You do not have the regulatory center. To open accounts in Bitcoin network does not need any documents and permits.
You can always keep your bitcoins under the direct control, for example in a home safe.
For Bitcoin there are no frontiers – it instantly anywhere in the world where there is Internet connection. - Bitcoins are unsecured, the cost depends on the amount spent on their generation of electricity or computing power
When we talk about that currency provided, we mean its binding to the exchange rate with any "reference" asset. Spent on the generation of bitcoins computing power, kilowatts of electric energy cannot be used to determine the security of their value. Bitcoin's value is based only on how they are valued by the people, and the higher the price, the more people will try to generate, which in turn will increase the complexity of generating and as a consequence - to the even greater difficulties of extraction.
The truth is that nothing is provided, including state of currency and gold. The cost and value of the classic units of money depends on several factors, the most important of which is the credibility of the Issuer (the Central Bank), the belief that it will fulfill its obligations. But the defaults of the States (the refusal to pay debt) have occurred even in large economies.
Gold in the eyes of people for thousands of years, has value in itself and does not require collateral. A similar situation exists with Bitcoin – its software is just how it is valuable for people who are ready to take it as a metabolic equivalent. Here works the General law of supply and demand. The main factor that determines the value of Bitcoin is its dissemination and use in the economy of different countries of the world. - Bitcoins are illegal because they are not recognized as means of payment
For illegal means of payment in Russia there is the concept of money substitutes. Cryptocurrency at the moment does not belong to this category. To call them illegal is incorrect.
Following the basic rule “everything is permitted that is not forbidden” and around the world use Bitcoin as a means of payment. In many countries of the cryptocurrency officially recognized as "private money" or a financial asset which is subject to the General rules of financial regulation.
By and large, Bitcoin - convenient unit, like any other currency, equivalent to the cost of certain things. - Bitcoins are a form of financial terrorism, because they only hurt the economic stability of the state and the state currency
The assertion that Bitcoin was created for the purposes of terrorism and destruction of the economy, harm the public customs, absolutely not true.
Terrorism is a form of violence, and planned and aimed at achieving certain goals. Cryptocurrencies are just one of financial instruments, the application of which depends on in whose hands they are.
The Bitcoin technology provides alternative solutions to many security issues and financial activities. With proper use it can contribute to the development of any business and the overall economy. - Cryptocurrencies will only facilitate tax evasion, will seriously damage the global economy
Now, even with a large number of transactions passing through the wallets of the users of cryptocurrencies, the amount that can be considered as income and the basis for the requirements of her taxes in most cases are extremely small in comparison with the same turnover in national currencies.
To say that it is a way of evasion, and that it will lead to the fall of civilization - is totally wrong. The responsibility for this in the same way as with "regular" currencies, lies on specific people, not technology.
Legislators of all countries are working on options for taxation of transactions conducted using Bitcoin. In some European countries (Germany, UK, Netherlands, etc.), cryptocurrency transactions are subject to the same taxes as in other currencies. - Bitcoins can "print" each, therefore they are useless
The difficulty of Bitcoin mining is currently too big, besides, it increases.
As you know, bitcoins are mined not by one but by blocks, and the reward per block is halved every 210 thousand produced units. And if in 2009, the block size was equal to 50 BTC, now it is 25 BTC, and in 2016 will have a 12.5 BTC.
Through the introduction of innovative developments of equipment for mining, aggregate network performance is many times increased with complexity. At the moment the personal computer is not able to provide the necessary computing power. For a profitable mining is already required investments, measured in hundreds of thousands and millions of rubles.
The usefulness or uselessness of cryptocurrency is not determined by what it can print or mint everyone, and whether or not this cryptocurrency will be used by people in everyday life. - Bitcoins are useless because they are based on untested/unproven cryptography
Untested and unproven concept of “cryptography” is, in itself, is an absurd statement. The algorithms SHA-256 and ECDSA, which are used in running the Bitcoin network, are well-known industrial encryption standards. - The first users were unfairly rewarded by bitcoins
The first users of Bitcoin rewarded for what used and tested yet useless and incomprehensible technology. This is a reward they received for taking the risk of losing not only time but personal funds. This world has many injustices and reward the first user is unlikely to need to discuss.
Now about 2/3 of the 21 million of all coins mined and is users. If you become the owner of bitcoins in the near future, later, for someone you will also be considered as one of the "first users".
Source: https://bits.media/myths-bitcoin/
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