Common Myths about Bitcoin

Bitcoin is the oldest cryptocurrency available in the market and is more than 8 years old now. It has also survived a number of attacks and has evolved as a much stronger cryptocurrency. It offers anonymity as well as liquidity to the users. It has also taken some recent moves in scaling it which includes lightening and segregated weakness. There are some deep understandings and a different language used by the Bitcoin and Blockchain communities. This provides some confusing ideas and images in the mind of the people and it stops them from really understanding the facts about Bitcoin. So let us have a look on some of the common myths about Bitcoin so that you are aware of them to remain enthusiastic about the Bitcoin’s importance.

Bitcoins are actually Gold coins

In the web wherever you look for the pictures of Bitcoins, it will show a Gold Coin with a letter B and two vertical bars. So most of the people looking at it think it as a Gold coin or made of any other precious metals. But in reality, Bitcoin is just a digital currency which only exists as an entry on a ledger.

Bitcoins are kept in a physical wallet

Another myth about Bitcoins is that it is kept in a physical wallet like a leather purse or similar like you carry bank notes in a purse. The term wallet actually defines the software or application where you hold your private and public keys used for transactions and other Bitcoin purposes.

Majority of the Bitcoin usage is done by criminals

Anonymity was the core attribute when Bitcoin arrived first. The information about the user is not shared in the Bitcoin system. This makes it obvious that a range of bad actors can use Bitcoin for bad purposes. Attackers have used this technology for money laundering, to support trafficking and also for fundraising for the purpose of terrorism.

But Bitcoin community has fought a lot to clean the system from these bad acts and has also reached to a good success level. Bitcoin exchanges, miners and other associated parties share information to identify fraudulent activities and ultimately the result is good.


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