Clearing Up Misconceptions Around Bitcoin

2019-03-01T17:13:00.000Z Honest Cash

Hey cryptonauts ! Thanks for joining me. Today we are going to be talking about misconceptions surrounding Bitcoin and cryptocurrency.

Number 1

Bitcoin can seem complicated, but it doesn’t have to be. One of the first things that people are often surprised to learn is that you don’t have to buy an entire bitcoin! You can buy fractions of a bitcoin if you want because a Bitcoin is divisible up to eight decimal places. The smallest divisible unit of a Bitcoin is called a Satoshi. With 1 satoshi = 0.00000001 BTC. And 100 million Satoshi’s = 1 BTC.

A good approach for newcomers interested in investing in crypto currency would be to dollar cost average. That is to say, simply buy small amounts of Bitcoin over time, whenever the price dips. Simple. It adds up!

Number 2

“Bitcoin will never be fast or have cheap enough transactions fees to be usable to the world audience”

Now while this is a simplified explanation, there are several layers being built on top of the bitcoin block-chain to help solve some of the problems with bitcoin today.

Lightning network is a solution to aid the bitcoin block-chain in processing more transactions at once and to do it faster. Although some suggest this won’t really help, and it adds a centralized layer on control on top of a decentralized platform I wouldn’t write it off just yet.

Another layer being added to the bitcoin protocol is called Rootstock. Rootstock allows for Smart Contracts on the bitcoin chain. Smart Contracts are just like they sound, contracts. Except the exist in the block-chain. Smart contracts help you exchange anything of value in a transparent, conflict-free way while avoiding the services of a middleman.

Zksnarks. Bless you. Huh? SNARKs are short for

succinct non-interactive arguments of knowledge

What this means is information can be verified cryptographically without having to look at the information itself, increasing privacy and security. Right now, Bitcoin transactions aren’t completely anonymous as some have been led to believe. There are other cryptocurrencies which are more anonymous than bitcoin right now such a Zcash and Monero. Which bring us to

Number 3

The DARK WEB. DUN DUN DUN What does cryptocurrency have to do with the dark web? Quite a lot. You may have heard that Bitcoin is the crypto used by “criminals” on the dark web. And that might have been true back in 2011, but due to better anonymity, the Dark Web currently uses Monero as their crypto of choice. Now I wouldn’t advise or suggest anyone ventures into the Dark Web however the mainstream media still likes to tote the idea that Bitcoin is used by criminals and for money laundering. Well I ask you, how is that any different than regular money?

Number 4.

It’s a bubble !

When you look at the price and how quickly the cryptocurrency markets change it can certainly look like a bubble. However, Bitcoin is just getting started and realistically could overtake the market cap of gold in just a few years making it one of the best investments in modern history, with the younger generation already investing more into bitcoin and cryptocurrency than traditional stocks like gold.

Bitcoin IS Gold 2.0

Allright cryptonauts I hope I have answered a few questions for you and cleared up some misconceptions surrounding bitcoin. If you have more questions than answers that’s good. It means you’re learning. Feel free to share any of those questions or comments down below so we can all learn together. Thanks again for reading and stay cryptic!