7 Biggest Bitcoin Myths

With Bitcoin hitting new all-time highs and major news breaking almost every day, it seemed like a good time to look at some of the biggest myths and misconceptions people tend to have about the world’s first cryptocurrency, see if they have any merit, and correct the record. If you think, for instance, that Bitcoin’s value is “based on nothing” or that it’s too volatile to have any real-world use, this guide is for you. We’re separating fact from fiction — without shying away from legitimate risks — to get to the truth about the world’s most popular cryptocurrency.

Myth #1: Bitcoin is a bubble

While it’s true that some people buy Bitcoin as a speculative investment seeking big returns, that doesn’t mean that Bitcoin itself is a bubble. Bubbles are economic cycles characterized by unsustainable rises in market value. They eventually pop when investors realize prices are much higher than an asset’s fundamental value. Bitcoin is occasionally compared to an infamous early speculative bubble: the 17th century Dutch “tulip mania.” In 1637, speculators caused prices for some tulip varieties to surge 26-fold. The bubble lasted six months, crashed, and never recovered.

Myth #2: Bitcoin has no real-world uses

Critics like to claim that Bitcoin isn’t useful in the real world — or if it does have a use, it’s mostly useful for illicit activity. Neither of those statements are true. Bitcoin has a long history as a means of making payments to anyone in the world, all without a bank or payment processor in the middle. And…