Popular Bitcoin Myths and Facts in 2021
During Bitcoin's existence, many misconceptions emerged, which continue to spread around the world. This leads to the fact that cryptocurrencies are being treated negatively, as most myths about digital currencies aim to discredit them. Today, we'll consider the most popular BTC myths along with the real facts you need to know. Let's start!
Who Launched Bitcoin?
The first Bitcoin transaction took place in March 2009 by a person or group of people under the name of Satoshi Nakamoto.
By inventing blockchain technology, Nakamato was able to solve the problem of easy copying of digital currency, which avoided double spending.
The first known purchase (exchanging bitcoins for tangible goods) took place in May 2010 when a person offered 10.000 bitcoins to anyone who could arrange delivery of two pizzas to their home.
At that time, the cost of a BTC was $0,0015. Today, the two pizzas would be worth nearly $380 million in Bitcoin.
What is the Bitcoin Market Size?
At the time of this writing, the market value of the BTC was $1.035.210.870.257. That amount can be compared to the value of all the physical gold in the world, which is nearly $11,1 trillion.
In other words, over a period of just over 12 years, the Bitcoin reached a value of more than 9% of the value of all gold.
It is difficult to predict daily transaction volume because some markets sometimes exaggerate their volume data for marketing purposes.
According to market data processing company CoinMarketCap, the daily volume of BTC transactions in early 2021 was about $60 billion, but other calculations of actual volume turned out to be much smaller.
According to another market data analysis company, Nomics, the actual volume is about $12 billion.
For comparison: at the end of 2019, daily physical gold trading reached $145 billion, while the daily volume of the US S&P 500 stock index was around $150 billion.
How Many Cryptocurrencies Are There?
Along with Bitcoin, there are more than 4.000 other cryptocurrencies. Every week, new cryptocurrencies appear, while others disappear instead. Three years ago, there were about 1.300 cryptocurrencies.
The total market value of criptomoedas exceeds $2 trillion, of which approximately 45% is bitcoin. The second largest cryptocurrency is Ethereum, with a market value of approximately $424 billion.
Is it true that Bitcoin Consumes Lots of Electricity?
Yes it's true. All computers trying to solve cryptographic puzzles consume a lot of electricity. Last year, the BTC grid used 77 terawatts of electricity — more than all of Australia consumes.
At the same time, it is wrong to regard this as absolutely wasted electricity. The mining process ensures the ongoing integrity of the blockchain and ensures that no one can sell their bitcoins to two or more buyers at the same time.
In this sense, the cost of electricity can be considered as the cost of maintaining network security.
The higher the price of BTC, the more economical the new mining farms will be.
Here, too, we can draw a parallel with the production of traditional goods, regardless of whether it is gold, copper or coal mining. If the price of the good in question increases, it is profitable to produce it even at high cost.
However, electricity consumption is becoming a bigger issue and some cryptocurrencies will switch to other methods to keep their networks secure.
Is Bitcoin a Pyramid Scheme?
Not accepting cryptocurrencies, calling them another big bubble and a modern version of Holland's 1637 tulip craze is wrong. It's not a pyramid scheme.
The financial pyramid is always characterized by promises of large increases in the value of an asset. Bitcoin buyers were never guaranteed their future value.
Bitcoin pricing is entirely determined by supply and demand, as well as for all other assets traded on the market.
And although this phenomenon is not a bubble in itself, the value of Bitcoin and other cryptocurrencies may be overrated, so there will be a drop in prices.
With Bitcoin, this has happened several times over its 12+ year history.
We also saw a price increase last year, but the fastest and most explosive jump in BTC price occurred in the first few years of operation.
Popular Bitcoin Myths and Facts in 2021: Summing Up
Today, we consider the most popular Bitcoin myths, along with real facts about them. If you enjoyed this article, we will prepare the second part of interesting facts about the first and most popular cryptocurrency.
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