Road Sign 29 – FactsAs a groundbreaking innovation, Bitcoin attracts supporters and skeptics alike. The technical and theoretical complexity of the digital currency can be confusing for some who have not yet been deeply involved with the technology.

The result is that many skeptics hang themselves up on one or two statements about Bitcoin. One often hears “Bitcoin cannot succeed” or “Bitcoin is a snowball system”. These statements do not correctly understand the characteristics of the digital currency and do not all too rarely cast a false light on the digital currency.

In the following we will refute known Bitcoin myths like the news spy

Bitcoin is only a speculative investment as in the review about the news spy. Many people heard about Bitcoin for the first time in connection with the high price. Either in connection with the bubble in 2013 or in connection with the recent fall in prices. People therefore associate Bitcoin with a very volatile currency in which it the news spy worth investing or not precisely because of the volatility.

But the truth is that Bitcoin is much more than just an asset. The decentralised peer-to-peer payment network is just one example of why Bitcoin will tear down old barriers. If the Bitcoin price would theoretically always remain the same, the digital currency would still have an enormous benefit, far from a speculative investment.

2. the blockchain is the true breakthrough and not Bitcoin
That’s true – the blockchain is truly the ingenious invention of Satoshi Nakamoto. The public register and security of the blockchain give Bitcoin its uniqueness. Once people have realized this, they often only see a use case of the blockchain in Bitcoin.

In reality, however, mining is the bread and butter of the Bitcoin protocol and without miners there would be no blockchain. The consequence of this is that the miners have to be rewarded for their work, because otherwise they would have no incentive to do their job and keep the blockchain alive. The reward is paid out in the form of Bitcoins.

Bitcoins are therefore essential for a functioning blockchain

3. the government will ban Bitcoin one day
While governments around the globe are thinking about how to take care of Bitcoin, many people mistakenly think that governments can simply ban Bitcoin when they feel like it. That’s exactly what people are used to from governments.

Yes, governments have the power to make it very difficult for people to use Bitcoin and government regulation is inevitable and welcome. However, if a government were to ban the global Bitcoin network, it would be very time-consuming and costly, if not impossible.

4. you can’t buy anything useful with Bitcoin
Many people are surprised when they hear that Bitcoin is not only a speculative investment but also a currency with which they can buy everyday things.

Below are the largest Bitcoin Accepting Companies, sorted by annual turnover:

bitcoin accepting merchants
Source: CoinDesk State of Bitcoin Q3 2014 Report
In addition to the companies already mentioned, PayPal has announced a partnership with Bitcoin companies and Microsoft is already accepting Bitcoin for online games and other digital media. In addition, hundreds of small shops around the world already accept Bitcoin as a means of payment.