Ever since the still-unidentified Satoshi Nakamoto launched Bitcoin and Blockchain in 2009, people have tried and tried to demystify this revolutionary technology. It has gathered steam, and then last year, it rose astronomically—higher than what people have imagined. And along with that excellent rise were myths and misconceptions related to it.
if you’re just starting out in the world of Bitcoin trading, you might want to check the things you think you already know about it. Faulty information and misconceptions have a certain ability to make you fall for them, even if you think you know better.
Read this article and learn more Forex Market knowledge about Bitcoin.
Misconception 1: There’s limited supply of Bitcoin
Bitcoin has been described as “digital gold” because of the impossibility to create more than the units targeted, which is around 21 million units. In other words, Bitcoin is not infinite. There will be, at some point, a stoppage to the creation of such digital tokens.
However, there is no assurance that the supply of Bitcoin won’t change in the future. The initial design calls for only 21 million units to be slowly created in the next hundred years. But the protocol can be changed if the community can come into consensus, referring to majority of the participants in the Bitcoin network.
This has happened several times before, and there’s really no guarantee that it won’t occur in the future.
Misconception 2: Bitcoin users are completely anonymous
It has been widely agreed that using Bitcoin is generally more secure, offering higher level of privacy to the users. Users can use as many codenames as they want and the transactions cannot be easily traced back to them.
However, in spite of the widespread talk of this feature, the truth is that the government can track Bitcoin users. It is actually possible to connect a user’s pseudonyms together by studying patterns in the Blockchain.
As a matter of fact, a number of Blockchain analysis firms are already offering services to the law enforcement. And here comes the third myth.
Misconception 3: The law cannot touch Bitcoin
Back in the day, when Bitcoin was still new, FHBC Demo Account it was used as the choice currency for the humongous drug market called Silk Road. Since then, it has been believed that Bitcoin has a very special ability to evade the law.
A lot of reputable names and recognized names in the world of finance have expressed agreement to this sentiment. One even went further to say that Bitcoin “ought to be outlawed.”
However, the truth of the matter is that new technology always needs updated interpretations of existing statutes and case law. The point is gradual process has already been well underway for Bitcoin.
Bitcoin exchanges are already regulated through certain laws in a number of States, like New York, and by the regulations and policies of money transmission services in other places.
Meanwhile, all mainstream Bitcoin exchanges attempt to follow the “Know Your Customer” laws to prevent potential money laundering schemes in the least. Also, the Securities and Exchange Commission has begun cracking down initial coin offerings under its authority to regulate securities.