5 False Assumptions People Have About Bitcoins In 2020
In 2009, the cryptocurrency, Bitcoin, would make its first appearance. Created to be a new form of payment and currency, the Bitcoin combined money and technology into one. While in the traditional sense, cash is commonly seen as tangible, Bitcoin was and is entirely digital.
Since its creation, the Bitcoin has gone from a couple of cents to now worth over $14,000 to a Bitcoin. Many early adopters of the cryptocurrency, Bitcoin, suddenly found themselves shoot to immense wealth, as their 50-dollar investment was now worth hundreds of thousands of dollars.
While many benefitted from the early adoption of the cryptocurrency, there has been speculation that Bitcoin has yet to reach its full potential. There are many investors who believe that Bitcoin is going to peak again.
Here are five assumptions that novice investors and those who are new to cryptocurrency believe about Bitcoin.
Bitcoin Is for Criminals and Illegal Activity
This is false. Though people believe that Bitcoin is the currency of criminals because it is not tangible, Bitcoin is a valid currency like the US dollar. The perception that Bitcoin is for criminals is that when the cryptocurrency began to gain extreme value, it was being used by scam artists who were seeking Bitcoin as payment. The reality is, Bitcoin can be traced, and the most commonly laundered money around the world is the US dollar.
Bitcoin Is Another Ponzi, Get Rich Scam
As for Bitcoin to be a “Ponzi” scheme, it would have to bring in investors who would put money into the cryptocurrency and that money is circulated and recirculated amongst its investors. This is not the case. Bitcoin is a peer-to-peer open-source currency.
Bitcoin and Other Cryptocurrencies are Unregulated
There is some truth to this statement. However, very little was understood of Bitcoin and cryptocurrencies in general. Nowadays, governments around the world are embracing the value that cryptocurrencies have. Many trading platforms are recognizing Bitcoin and allowing investors to trade it in a regulated and controlled manner. To know more you can visit bitcoin-prime.app
There is Only One Cryptocurrency – Bitcoin
False. There are multiple types of cryptocurrencies. The reason people think that Bitcoin is the only one is due to its success. Other notable cryptocurrencies include Ethereum, LiteCoin, and Bitcoin Cash. These are just a few other cryptocurrencies people can choose to invest in.
Bitcoin is for Those Wanting a Quick Get Rich Investment
False, just as the stock market has highs and lows, the same goes for the crypto market. Sure, for early adopters of successful cryptocurrencies, the payout was massive. This is not the case for many looking to invest in cryptocurrency. There are those occasional peaks that result in large payouts; however, the crypto market is very much like the stock market. You win some and lose some.
Everyone Has an Opinion
Choosing to invest in Bitcoin or any cryptocurrency is going to depend on what you are looking to do. Many progressive investors believe that digital currency is the way of the future. Therefore, it should be regarded as a long-term investment rather than a quick get-rich option. Even then, many skeptics see traditional forms of currency (paper and coin) as the only way to trade.
The truth of the matter is, Bitcoin and many other cryptocurrencies are being compared to gold. Gold is a tradable commodity that has gain tremendous value over time, and because of this, many foresee the same future for Bitcoin. The next time you hear someone talking about investing in Bitcoin or knocking the potential of cryptocurrencies, remember that they are raking in the financial benefits. They were skeptics who took a chance and now are profiting greatly from taking a risk with the crypto-market.