5 misconceptions about bitcoin that you need to dispel right now
Cryptocurrencies are not a new thing in the market. They have been here since the last decade. And you must have seen several introductions comparing the Cryptocurrencies with traditional fiat currencies.
Despite all the benefits Cryptocurrency has to offer over the traditional fiat currencies, there are still people out there who do not believe in the Cryptocurrency.
The Cryptocurrency was the missing element to build a new financial transaction. So, when people get to know about the existence of the Cryptocurrencies, they were thrilled. And why shouldn’t they? After all, they are getting a decentralized currency that no institution holds authority over.
Despite having such tremendous advantages over the printed fiat currency, some people tend not to believe this financial innovation.
So, what can be the reason? Let’s find out now.
Misconception about Bitcoin
Due to the lack of knowledge, people tend to describe Bitcoin in their imagination. In a study, it has been found that more than 60% of internet users are familiar with the term Cryptocurrency and Bitcoin. However, most of the users have information from the internet, where most of the data are misleading. This knowledge gap has created several wrong misconceptions.
Hence, we were forced to stand for Bitcoin against these misconceptions. In this section, we will debunk all the misleading information and will try to bring correct information to the front.
1. Bitcoin will replace Fiat currency
After the historical event of 2017, when the price evaluation of the Bitcoin rose to $20000, people started thinking that it might replace the traditional fiat currency. 4 years have passed since that event, Cryptocurrency is nowhere near the mainstream currency. Please don’t take us the wrong way; deep down, everybody wants that to happen, but it might take longer than we have anticipated.
Nowadays, the regulation of the Cryptocurrency has become seamless compared to its earlier days. However, there are still people who are again using paper currency on a large scale.
2. It is anonymous
A bitcoin transaction is considered anonymous, and people believe that transactions can be done without letting others know. However, that is not entirely true. For instance, every transaction is related to your wallet. So, if the Id of your wallets is linked with your identity, you are exposed.
Also, several tools can be used to track down identities by government officials (In case of illegal activities).
3. Bitcoin has intrinsic value
The intrinsic value of the Bitcoin means what the backing force of the bitcoins is. In the case of the traditional fiat currency, we know that government institutions back them. But can we say the same thing for the Bitcoins or any other form of Cryptocurrencies?
Let’s stop here and think about the things that an element needs to have to have the attributes of money.
- Acceptability.
- Scarcity.
- Interchangeable.
- Durability.
- Divisibility.
- Transferability.
If Bitcoin fails to satisfy any of these attributes, you can count it out of the possible money list.
4. Bitcoin is not taxable
Bitcoin is not taxable. To some extent, it is true but, at the same time, false. Every country treats Cryptocurrency in its way. Countries like the Netherlands and South Korea do not impose a tax on Cryptocurrencies. At the same time, countries like Australia, Spain, and the USA have asked their citizens to pay tax on their Crypto profits.
If you want to have a better idea of your past Crypto transactions, use https://primeadvantage.app. It keeps all your data in one place. So, while tax filing, you do not have to go through all your past transaction copies. Just do bitcoin rejoin; you will get your transactional data.
5. Bitcoin is illegal
If you say so, then it is illegal. Then what about the money laundering activity that happens in dollars. If you accept Bitcoin as illegal money because it has been used for illicit purposes, then the same thing can be said for the Dollars as well. Arguing on this will make the matter even worse. It is the people who are using the money for the wrong reasons.
Conclusion
With that being said, we hope we were able to lift the curtains from some of the baseless rumors and misconceptions. If there are other myths that you need to be debunked or what’s the story behind it. We will be more than happy to do that for you.