5 Myths about Bitcoins that Just Might Surprise You
With more and more businesses starting to accept virtual currencies such as Bitcoin, there are bound to be a few myths floating around. If you’ve been paying attention, you might have noticed that most of these misunderstandings have something to do with money laundering, cybercrime, and anonymity. That’s because virtual currencies don’t offer the same security features as traditional financial institutions like banks. However, that doesn’t mean that they aren’t worth checking out. Some of the misunderstandings about Bitcoins could help you in your search for a trustworthy digital currency provider. Here are some common myths about Bitcoins that just might surprise you…
Bitcoins aren’t secure.
As mentioned above, Bitcoins don’t offer the same security features as traditional financial institutions like banks. This means that you have to trust a third party with your Bitcoins. However, that doesn’t mean that your Bitcoins are less secure. It just means that if someone breaches the security of a Bitcoin wallet service, they can access all of your Bitcoins, not just the ones in that particular service.
Additionally, many Bitcoin exchanges have been hacked and have lost customers’ Bitcoins. However, it’s important to note that the same thing can happen to traditional banks. If a large number of banks are hacked, it doesn’t mean that your bank account is less secure.
Fortunately, we have some trading platforms like Ethereum Code that have guaranteed security. Your coins cannot be accessed by third parties because the website is crafted with modern safety features.
Bitcoin is only used for illegal activities.
First, let’s get this misconception out of the way. There have been plenty of news articles about crimes committed with Bitcoins, but that doesn’t mean that all of them are true. If you’re looking for a virtual currency that is truly anonymous, you’re better off looking into the Darknet markets than Bitcoins. Darknet markets like Alphabay or Hansa don’t track their users and make it easy for criminals to buy and sell illegal goods without the risk of being caught by authorities. While it’s true that you can buy illegal items with Bitcoins, you can also easily use the same virtual currency to buy legal products.
You’ll pay a lot in taxes if you use Bitcoin.
There are a few myths out there that claim that using virtual currencies is illegal in most countries and that you’ll be fined if you happen to pay taxes with Bitcoins. This is completely untrue. Most countries have tax laws that allow you to use virtual currencies like Bitcoin as a form of payment. Additionally, it’s important to note that using virtual currencies like Bitcoin isn’t illegal in most countries. It’s just important to remember that you’re responsible for reporting any taxes that you pay with Bitcoins.
There isn’t much liquidity in Bitcoins.
This myth probably comes from the fact that you can only purchase about $50 worth of Bitcoins with $500 worth of traditional currency. However, this doesn’t mean that there isn’t any liquidity in Bitcoins. The fact of the matter is that most people who use Bitcoins are exchanging them for traditional currencies. The only people who keep the Bitcoins that they own are people who use them to buy goods and services.
You can’t buy things with Bitcoins.
This one might be the most surprising of all. While it’s true that you can’t use Bitcoins to buy things directly, you can use them to buy other things. For example, if you want to buy a plane ticket using Bitcoins, you’re better off using them to pay for online travel agencies or retail stores like Amazon, Expedia, or TravelExpert. These businesses accept Bitcoins as a form of payment and can easily convert the Bitcoins that they receive into traditional currencies.
Final Thoughts
Pretty soon, people will be saying “Bitcoin is here to stay.” This could be true as more and more merchants start accepting Bitcoins. While it’s important to research different providers before choosing one, there are a growing number of trustworthy companies out there. With this in mind, there are many benefits to using Bitcoins. For example, you can now conduct business online. This means that you don’t have to rely on banks and other traditional institutions. You can also use Bitcoins to buy goods and services in a lot of places that don’t accept traditional currencies like dollars and Euros. Whether or not you should use Bitcoins is up to you. However, it’s important to remember that they aren’t safe and they aren’t regulated.
