Cryptocurrencies have been making all the right noises since the past decade. Not only are authorities in different countries considering regulating it, but also organizations are embracing it as a viable means of investment. Amidst all of these, what is stopping you from making your first Bitcoin investment? Well, it’s probably one of the myths mentioned below.
Myth 1: Bitcoin is nothing but a bubble
Though it is true that most people purchase Bitcoin as a form of speculative investment offering major returns, it does not mean Bitcoin is a bubble. As such, Bubbles are a type of economic cycle characterized by unsustainable rise in market valuation. Eventually, they pop as the investors figure out that the prices are higher than the fundamental value of the asset.
Bitcoin went through several price cycles in the last twelve years – recovering every time to attain new heights. Boom and bust are a given with such a new tech. As such, it helps to use something like profitbuilder-app.com/de to analyze the market effectively before proceeding with crypto investments.
Myth 2. Bitcoin has zero real-world usage
Critics opine that the use of Bitcoin in the real world is mostly for illegal activities. But that is the farthest from the truth. Bitcoin has long been used to make all kinds of payments, without any payment processor or bank in the middle. Moreover, it’s major institutional crypto investors are increasingly using it as a hedge against inflation.
Recently, Bitcoin has gained popularity as the inflation-resistant store of value – almost like gold – making Bitcoin earn the name of ‘Digital Gold.’ More and more publicly traded companies are buying millions and billions of dollars as Bitcoin to efficiently manage the assets.
Myth 3. Bitcoin has no real value
Though Bitcoin is not backed by physical assets like gold, the same thing applies for basically any modern fiat currency. In fact, Bitcoin is still hard-coded to make it scarce. It helps in making the cryptocurrency resistant to any kind of inflation. As such, inflation is common with fiat currencies as large quantities are made to dilute the present supply.
In case of Bitcoin, the supply remains capped, and the amount being mined shows a steady and predictable decline over time. Once in four years, the miners present in the network cut it in half. Thus, by the principle of scarcity, the price keeps trending upward over long-term.
Myth 4. A competitor will ultimately replace Bitcoin
Bitcoin holds the distinction of being the first successful digital currency. Though new cryptocurrencies have come up with new features or benefits, none of them have managed to overtake Bitcoin.
Although thousands of cryptocurrencies have come up in the past decade, Bitcoin is still the most valuable one in terms of market cap. As it makes up around sixty percent of the market, Bitcoin is the most popular one as well.
So, do not let these myths stop you from making a lucrative investment. Go ahead and download a reliable app to start trading in the Bitcoin market.