Ever wondered where to invest your money, but have always preferred not to? Do you think that banks give too little interest and that you need more knowledge and practice to play the stock markets? Relatives are still talking about a repeat of the MMM scenario, friends are saying that the bubble will burst soon, but you want to have a good and stable return so badly? Let’s take a look at the current situation together.
1. Bitcoin is the currency of the criminal world.
Many are still convinced that Bitcoin is only of interest to criminals, speculators and charlatans. Behind this assertion is the fact that all transactions are anonymous. Of course, the criminal world does use Bitcoin for their financial transactions, but compared to 2013, when the share of transactions related to illegal transactions was 90%, in 2018 it is only 10%.
Users who work with BTC in 2018 are well aware that blockchain is not all darknet, but a perfectly adequate decentralised mechanism with the occasional splash of illicit activity.
2. Bitcoin is a pyramid scheme.
The most favourite statement of sceptical users is: “Your bitcoins are a pyramid and the bubble is about to burst”. Well, let’s look at how a classic pyramid scheme works. It is a financial scam in which the earnings of the first depositors provide payouts to subsequent participants. There must be a constant and growing emission of pyramid assets, and there must be new participants who provide payouts to those who became investors before. Consequently, it is logical that the returns in pyramid schemes are provided solely by the money of the previous depositors.
In the case of Bitcoin, it is exactly the opposite. The increase or decrease of the value only depends on the market — supply and demand on the exchanges. And since the latter is limited (max. 21 million units) and demand is growing, it ensures that bitcoin’s value is increasing.
3. Bitcoins are illegal because they are not recognised by the state.
Bitcoin, as a decentralised monetary system, was conceived by Satoshi Nakamoto as a way to escape the monopoly of states and banks and provide society with a new mechanism for exchanging and transferring value without third parties. Bitcoin is a self-sufficient system and, like the blockchain on which it is based, it does not need government regulation. Also, Bitcoin is a non-business system, which means you do not need permission from anyone, including the government.
