For those long involved in the crypto space, it’s easy to forget just how overwhelming and mystifying the world of bitcoin was when first encountered as a fresh-faced neophyte, unable to tell the difference between a bitcoin and a blockchain, or even what a private key was. In that interest, it stands to examine 7 common myths surrounding the permissionless digital asset, to help disperse some of the troublesome fog that can obscure the true nature of crypto for beginners.
The Nature of Myths
Myths and works of fiction aren’t powerful unless they contain some element of truth in them, or point to some deeper reality. In much the same way, myths and common misconceptions surrounding bitcoin and crypto often find their basis in real life situations or partial truths, leading to confusion down the road for those who don’t have the informational tools to sort out the difference. This post seeks to provide some of these tools.
Common Bitcoin Myths and Misconceptions
1. Bitcoin Is Anonymous
Whether one is talking about bitcoin core (BTC), or bitcoin cash (BCH), which was forked from BTC in 2017 to preserve the original vision of Bitcoin creator Satoshi Nakamoto, bitcoin is not anonymous. Using a simple tool called a block explorer or other analysis software, any and all bitcoin transactions can be viewed publicly. Indeed, part of the strength of bitcoin is its virtually immutable transparency which can prevent fraud, theft and third party tampering.
A bitcoin transaction is very different from a traditional bank or credit card transaction.