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Seven misconceptions about bitcoin that hurt investors

1- Bitcoin is the safest possible form of money!
I do not know who first told this lie and where? Perhaps a few years ago, when people did not know bitcoin, a marketer made this claim and then it became popular. The claim is something like this: “There is only one account in the bank and it can be stolen by hacking it. But Bitcoin has millions of head offices around the world. Information stored on the computers of people around the world. So if someone wants to steal bitcoins, they have to hack all the computers in the chain, and this is not possible. So bitcoin is very secure.
It is true that the number of Bitcoin account books is very large. But this argument has two main drawbacks. First, the bank does not have just one ledger that can be easily changed. Second, not all accounts need to be hacked to steal bitcoins. Note that when you want to buy or sell bitcoins, you do not email each account book to update their information. You are a computer and a few clicks. Hackers can just as easily steal bitcoins from you as they can withdraw money from your account.

2-Bitcoin has no intrinsic value!
Many people think that bitcoin is worth tens of thousands of dollars out of nothing, and that this value has no real basis. This is not true. Every bitcoin is the result of a complex encryption process. This link in the chain alone is valuable. But the fundamental question is, how can we measure the intrinsic value of an object?
A common way to measure the value of an object is to see how much it costs to build a similar sample of a particular product. For example, suppose if you want to build a house yourself, you will have to spend 1 billion tomans. But now they are selling the house for 400 million tomans. So this house is valuable. It also costs money to build each bitcoin unit. Electricity money and the cost of purchasing Bitcoin mining equipment are part of this cost. Especially since you can not mine as much bitcoin as you want. Honestly, bitcoin is not a zero-cost commodity.

3-Bitcoin is untraceable!
Perhaps the biggest and worst possible lie about Bitcoin is that it is untraceable. Bitcoin is by no means obscure and anonymous. To clarify this, it is enough to look at one of the most important applications of blockchain in business. Today, various companies use blockchains to track the import of meat from China to the United States. Block chains are used to ensure the authenticity of aircraft parts, the origin of coffee and, most importantly, to record diamond information.
Contrary to many people’s beliefs, bitcoin is even easier to track than cash. For example, today my friend poured 300 thousand tomans into my account. Now this money is mine and the bank knows from whom I got this money. But where did my friend get the money? It was taken from his father. Where did his father come from? Where did that person come from? How far can all traces of money be traced? In a blockchain, it is possible to track transaction information until money is created. Just like tracking diamonds from Africa to London. It is hoped that this technology will be able to combat money laundering, but will not help hide money laundering.

4-Criminals love bitcoin!
As we said, bitcoin is not a secret at all. In the past, smugglers, money launderers, drug dealers and murderers were thought to use virtual currencies to trade online. Of course, some of them may use bitcoin. But bitcoin does not give them a special advantage.
Still, like the old movies, criminals prefer cash that is regularly stacked on Samson to anything. When you have a hundred dollar bill in your hand, no one cares if you find it on the ground or cash your Nobel check. For money laundering and illegal transactions, money laundering is the most important issue. As we said, clearing the bitcoin trail (due to the large number of notebooks) is very difficult. For this reason, many banks and financial institutions are wary of cash in their pockets, but accept deposits easily.

5-One day Bitcoin may be shot down!
Some investors feared that one day someone would drop the bitcoin and waste their money. For example, suppose one day you open a Google page and you see this message: “Thank you for a hundred years of companionship. “Google no longer exists today.” Maybe one day you want to buy a house and the seller says, “Thank you for your choice, but there is no more money in your virtual wallet.”
The fact is that no one can shoot Bitcoin. One day someone may not use bitcoin and the currency will be completely forgotten, but the only way to shut down bitcoin is to turn off the internet permanently. It is really possible that one day the Internet will go out of fashion and no one will use this technology anymore. But for now, no one has a plan to shut down the world’s internet.

6-In the future, bitcoin will replace all currencies today!
This misconception about Bitcoin was one of the reasons for its skyrocketing price. At that time it was thought that in the not-too-distant future there would be no such thing as Euros, Dollars, Yen and Rials, and that all the people of the world would use a common currency called Bitcoin.
Of course, the prediction that in the future we will have no physical money and all money will be digitalized is not far from the mind. Right now we do not use much cash. But virtual currency is different from digital currency. The elimination of all currencies and the acceptance of just one virtual currency for the whole world is a far-fetched event. In particular, price fluctuations and being out of control are unlikely to encourage governments to use these currencies.

7-Bitcoin is encrypted!
In the early days of digital currencies, the word Crypto-Currency was translated as cryptocurrency. In this translation, it was assumed that Crypto means Cryptic or mysterious. This word was also problematic in English. In English, someone who is a member of secret societies (especially communist societies) is called a Crypto. But Bitcoin bears no resemblance to the secret members of these associations.
Bitcoin basically consists of a password. A password that allows a block to be connected to a blockchain. Just like the password you use to log in to your email. But it’s very different if your email has a password, even if the information in the email or the sender’s name is encrypted and hidden. Even if you use a pseudonymous name to create an email, your identity will not be completely anonymous and they will be able to track you down if something goes wrong.




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