Thursday, September 23

7 myths about bitcoin

There has been so much talk about Bitcoin on TV on social media that it’s normal for people to be confused. We will talk about some known mistakes in our article that we wrote about Bitcoin as 7 myths.

Bitcoin, the open source, decentralized software product that a person or group called Satoshi Nakamoto published its white paper in 2008 and then released in 2009, has managed to create its own agenda since the day it emerged.

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Bitcoin is a Ponzi system | Wrong

Fact: Some groups are commemorating Bitcoin together in an illegal way created by Charles Ponzi, called the Ponzi scheme or Ponzi scheme. But this claim does not reflect the truth.

In 2014, Kaushik Basu, chief economist of the World Bank, published a detailed report on the subject. In the report; “Bitcoin is not a Ponzi scheme, contrary to popular belief. The main value of Bitcoin; “It could be lessons it offers to central banks about the prospects for electronic currency and how to increase efficiency and reduce transaction costs.”

The main feature of Bitcoin is its decentralization. It is not managed by a center or person as in Ponzi schemes. On the other hand, the limited supply and the transparency of all transactions reveal the secure structure of Bitcoin stemming from its technological infrastructure. Prices are determined only by user supply and demand. Therefore, it is a false information that Bitcoin is a Ponzi system.

Bitcoin is a bubble | Wrong

Fact: Bitcoin’s price chart with spikes and dips has led many to make ‘bubble’ claims. It has even been compared to the ‘tulip frenzy’ from the Netherlands between 1636 and 1637 and the ‘Dot-com’ event of the early 2000s.

But Bitcoin has one big difference: It has functioned and existed flawlessly since 2009, despite the price volatility. Moreover, it should not be forgotten that as a decentralized technology product, it is promising and has the power to radically change the entire system. Therefore, it is not price mobility that creates Bitcoin, but its flawless technology; infrastructure that provides data and asset security, transparency, easy transfer and low cost. Blockchain technology, which forms the basis of Bitcoin, has already revealed that it is the technology of the future.

Bitcoin infrastructure is not secure | Wrong

Fact: According to this claim, produced by those who are not familiar with the blockchain technology that forms the basis of Bitcoin, Bitcoin does not have a reliable infrastructure. But the reality is exactly the opposite. Blockchain technology is like an unalterable ledger.

In this technology, which can never be manipulated, all records are stored on thousands of computers. Therefore, a person or group cannot manipulate information. Moreover, after the emergence of Bitcoin, different blockchain networks emerged. Although the most popular product is cryptocurrencies, blockchain is now being used in different areas with its immutable structure and technology that makes transparency possible.

Bitcoin is too complex | Wrong

Fact: Bitcoin’s cryptographic infrastructure and how it works may seem complicated to non-software. However, a person who accesses Bitcoin as an end user does not need to have knowledge of this information. Secure trading and storage is important to end users.

Since the launch of Bitcoin, trading has become quite easy. It takes seconds to make these transactions, especially through cryptocurrency trading platforms. It’s almost as fast and easy as accessing information in a search engine or sending an e-mail. Therefore, it is not the right point of view to highlight the complexity of Bitcoin.

Bitcoin is illegal | Wrong

Fact: The information that Bitcoin is illegal is false. The leading countries of the world have regulated the crypto money markets. Today, crypto money markets are regulated in countries such as Japan, South Korea, Germany, Switzerland, the USA and Canada.

Regulatory work continues in Turkey, and it has been confirmed by official statements that concrete steps have been taken in this regard. Therefore, Bitcoin and cryptocurrencies are not banned.

Bitcoin’s decentralization creates victimization | Wrong

Fact: Bitcoin opponents argue that the decentralization feature is a disadvantage and creates victimization. They state that the absence of an authority to refer to in any problem leads to bigger problems. But decentralization is a system in itself that prevents problems and grievances.

The Bitcoin blockchain network is a structure that provides its own security without the need for anyone’s authority. Data entered in a block is contained in blocks in the entire network, cannot be changed or deleted. If a hacker tries to break into this network, it is disabled because the wrong data is not confirmed by algorithms. The system is self-checking and protecting, and therefore also protecting its users. Apart from this, when transactions are made on a platform that is reliable and provides 24/7 support, it becomes possible to get help at any time in case of problems that may occur.

Bitcoin is a gamble | Wrong

Fact: The idea that Bitcoin investment is based on luck is not true. Bitcoin, which is accepted as an investment tool all over the world and has a market value of approximately 620 billion dollars, has proven its maturity.

Bitcoin, whose price is shaped according to the supply-demand relationship, as in other investment tools, provides an advantage over other investment tools in terms of speed, storage and cost.

Bitcoin cannot be compared to a risk-only field like gambling, which does not promise a service, because Bitcoin is a digital currency that allows peer-to-peer payments and is produced with the science of cryptology. On the other hand, every investment vehicle carries a certain amount of risk. The important thing here is that the user acts with the right information, not with investment advice, and makes transactions according to his own investment profile and portfolio.

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