The cryptocurrency revolution is now more than a decade old. Bitcoin forever changed history, banking systems, and the lives of people. The future, according to specialists and analysts, is more than promising: bitcoin is inevitable. However, even though a large number of people know the crypto ecosystem and day by day more people join and begin to trade, invest and save in cryptocurrencies, an essential part of the population looks at this revolution with distrust (in most cases is due to receiving incorrect or false information) or completely not knowing what cryptocurrency is about. Here is a list of common misconceptions about cryptocurrency and Bitcoin:
Bitcoin is anonymous.
Not surprisingly, one of the most common misconceptions is that Bitcoin is anonymous. It is often said that bitcoin (or another cryptocurrency) is a form of digital or virtual money that is generally designed to be decentralized, secure, and in many cases, anonymous. What many people don’t know is that the Bitcoin blockchain is public. Anyone can access all transactions at any time since its inception in 2009.
On the one hand, a messy string of letters and numbers would not mean much to the general public. But Bitcoin transactions are infinitely more traceable than cash, and it gives authorities a much better chance of tracking anyone who wants to move money anonymously.
On the other hand, law enforcement agencies (Police, State Investigation Agencies, etc.) have experienced increasing success in leveraging the blockchain for investigations.
Bitcoin is for criminals
Bitcoin has struggled to shake off its association with criminality since its status as the currency of choice on the famous Silk Road. The deep web market allowed the purchase and sale of illegal goods and services and was a den of illicit activity with a community using BTC as a medium of exchange.
Bitcoin has also been the currency of choice for hackers because it is an electronic currency, and its transfer is quick and easy.
However, thanks to crypto transactions’ open and transparent nature, criminals often run into a massive wall when trying to turn BTC funds into fiduciaries. Not to mention, transactions can now be tracked to some extent. Bitcoin played a considerable role recently in the shutdown of one of the world’s largest child pornography websites due to analysts tracing bitcoin addresses on a darknet server.
This makes Bitcoin a very inferior currency option for criminals than, for example, the US dollar (still the overwhelming favorite). The vast majority of US $ 100 bills are in the hands of drug traffickers outside of the United States.
Bottom line: criminals can use bitcoin just as they use the US dollar, the euro, or another currency. That doesn’t mean it’s just for criminals.
The bitcoin network is not secure.
Another of the biggest misconceptions about Bitcoin is that the network is prone to hackers. With the media constantly feeding the public news of hacks and exchange scams and victims losing their funds, it is understandable for people to assume that Bitcoin is not safe.
However, the reality is that the Bitcoin blockchain has never been hacked. Exchange hacks are purely the result of the security flaws of each platform, that is, by leaving customer funds in wallets connected to online servers.
Now that the network has been decentralized, with the hash rate hitting an all-time high(ATH) in May 2021, it is more secure than ever.
No single entity would have enough computational power to coordinate a simultaneous massive attack on its 10,000 nodes spread across the world.
Bitcoin is only for geeks and internet experts.
True: the crypto ecosystem is full of terms uncommon for the population: blockchains, mining, hash rates, difficulty setting, forks, encryption, etc. However, the core nature of Bitcoin is that it is a universal peer-to-peer exchange of value that allows anyone to send and receive payments anywhere in the world, without intermediaries.
The protocol deals with many things beyond its technical specifications. From financial freedom and inclusion to a store of value, it’s increasingly proving that it’s not just for people with IT degrees.
Governments can turn off bitcoin.
Since Bitcoin has been “banned” in a handful of countries and its commercialization made illegal in others, people mistakenly believe that a government could bring down crypto assets. Bitcoin has reached a level of development where no state or nation can overthrow it through computers alone.
Taking down the leading cryptocurrency is impossible as it would require a massive chip-making sting operation and a coordinated assault to dominate the next block for 10 minutes. After this point, the perpetrators would be revealed, expelled, and lose billions of dollars for nothing.