You’ve probably heard them before. As a sensational innovation, bitcoin is sure to attract just as many sceptics as it does supporters and investors. The complexity of the cryptocurrency can also cause a degree of confusion for those who aren’t in the know.
As a result, the critics fall back on to several “processes” that are total myths. So, to ensure you know how to buy Bitcoin in Australia easily, here are some common Bitcoin myths debunked.
1. Bitcoin is a speculative investment opportunity.
Most people first hear about the digital currency in the context of price. Whether it’s a recent dip or earlier bubbles, many think of bitcoin in terms of price volatility. But, bitcoin goes beyond merely being a commodity. For instance, it’s breaking down doors with its decentralised peer-to-peer payment network. Even if the price of bitcoin were to stay the same for a long time, it could still be used in many other areas other than just a speculative investment.
2. You can’t buy practical things with bitcoin.
Many people are surprised after knowing that bitcoin can be used in paying for services and goods. Even Microsoft accepts bitcoin payments and PayPal has partnered with a number of bitcoin companies. What’s more, many small businesses accept bitcoin online or in their land-based locations.
So, bitcoin can be used to buy tangible things. A big benefit of the cryptocurrency is the low transaction fees. Bitcoin transactions can save merchants anywhere between 1 – 3% compared to credit card transactions.
3. Bitcoin is used to launder money.
The bitcoin community tends to obey the rules and is usually willing to cooperate with the government so as to increase the adoption of cryptocurrencies. To accuse bitcoin investors of laundering money just isn’t fair, or true. Tangible currencies are usually the preferred way for the unscrupulous to launder money.
4. You must buy a whole bitcoin at a time.
Bitcoins are actually divisible to eight decimal points. So, you can own a hundred-millionth of a bitcoin. Since the value of the cryptocurrency historically reached a high of around $1,000, buying a whole Bitcoin is a pretty far reach for many people, and just not practical.
5. The cryptocurrency can be shut down.
While companies can easily be shut down, bitcoin can only be shut down if the internet is shut down. So, it’s pretty much impossible and improbable.
6. Bitcoin can promise a fixed return scheme.
Many people think that bitcoin has to be a long-term investment in which they can lock in for a certain amount of time and then gain fixed returns at the end of that period. However, bitcoin comes with an open protocol. Both sellers and buyers decide the price, so there’s no guarantee and no fixed returns. If someone says you’re promised a certain amount of return, it’s a myth.
Armed with these 6 myths we’ve debunked, you’re better positioned to start investing in bitcoin.