The Great Uncoined – Common Bitcoin Myths

Throughout the history of Bitcoin and cryptocurrency there have been a myriad of myths and fallacies that have propagated to hinder mass adoption.  I wanted to make this article to look back and dispel some of the more common ones.

Quantum computers could crack Bitcoin’s cryptography

Bitcoin uses an Elliptic Curve Digital Signature Algorithm (ECDSA) as part of its security.  In theory quantum computers could potentially crack this cryptography (and all other cryptography used in fiat and other services).  However, quantum computers do not exist, and realistically won’t exist for a significant period.  Furthermore, Bitcoin has been designed to be upgraded if it were ever a potential threat in the future.  The risk of quantum computers is also there for financial institutions, like banks, because they heavily rely on cryptography when doing transactions.

Bitcoin can’t scale due to having a 21 million coin cap

Due to the divisibility of Bitcoin there are approximately 2 quadrillion possible units.  Each BTC is divisible by 8.

Bitcoin is a ponzi scheme

A ponzi scheme works by promising a client a profit at little to no risk.  People that spruik ponzi schemes aim to attract new clients and have them invest in the ‘business’.  Those investment returns are then given to the earlier investors.  Without new investors, the flow of money runs out to the previous investors, usually resulting in a collapse of the scheme.  Bitcoin is different in that it promises no return, new investors do not pay older investors to access the system, and new investors do not have to rely on more new investors to make money (if that is even their goal).

You can’t control inflation

Due to the inability for anyone to increase the total supply of Bitcoin past its 21 million cap, as a currency it can’t be inflated.  It is much more likely that Bitcoin will increase in value as demand increases.

Bitcoin is full of scammers

Bitcoin, like any financial instrument, has those with nefarious intentions drawn to it.  However 99% of users have not had any issues, if they use due diligence and do their research prior to purchase.  Knowledge is power for any newcomer to the cryptocurrency world.

Fiat already fulfils our monetary needs

Fiat has evolved over time, but still follows an outdated process and has enjoyed the relative safety of avoiding innovation.  Economic disruption is needed to bring our money systems into the globalized and open society demanded by today’s citizens.  Bitcoin has unique traits, that could make Fiat obsolete.  It has shaken up the industry and that can only benefit everyone.