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In 2009, the cryptocurrency, Bitcoin, would make its first appearance. Created to be a new form of payment and currency, Bitcoin has merged money and technology into one. While in the traditional sense, money is commonly seen as tangible, Bitcoin was and is entirely digital.
Since its creation, Bitcoin has gone from a couple of cents to a value of over $ 14,000 at one Bitcoin. Many early adopters of the cryptocurrency, Bitcoin, suddenly found themselves shooting towards immense wealth, as their $ 50 investment was now worth hundreds of thousands of dollars.
While many have benefited from the early adoption of cryptocurrency, it has been speculated that Bitcoin has not yet reached its full potential. There are many investors who believe that Bitcoin will peak again.
Here are five assumptions that novice investors and those unfamiliar with cryptocurrency believe in Bitcoin.
Bitcoin is for criminals and illegal activities
This is false. Although people believe that Bitcoin is the currency of criminals because it is not tangible, Bitcoin is a valid currency like the US dollar. The perception that Bitcoin is for criminals is that when the cryptocurrency started gaining extreme value, it was being used by scam artists looking for Bitcoin as a payment. The reality is that Bitcoin can be traced and the most commonly laundered money around the world is the US dollar.
Bitcoin is another Ponzi, Get Rich Scam
As for Bitcoin to be a “Ponzi” scheme, it would have to involve investors who would put money into the cryptocurrency and that the money be circulated and recirculated among its investors. This is not the case. Bitcoin is a peer-to-peer open source currency.
Bitcoin and other cryptocurrencies are not regulated
There is some truth to this statement. However, very little has been understood about Bitcoin and cryptocurrencies in general. Nowadays, governments around the world are embracing the value that cryptocurrencies have. Many trading platforms recognize Bitcoin and allow investors to trade it in a regulated and controlled manner. To learn more you can visit bitcoin-prime.app
There is only one cryptocurrency: Bitcoin
False. There are several types of cryptocurrencies. The reason people think Bitcoin is the only one is due to its success. Other noteworthy cryptocurrencies include Ethereum, LiteCoin, and Bitcoin Cash. These are just a few other cryptocurrencies that people can choose to invest in.
Bitcoin is for those who want a quick investment to get rich
False, just as the stock market has ups and downs, the same goes for the cryptocurrency market. Sure, for the first successful cryptocurrency users, the payout was huge. This is not the case with many looking to invest in cryptocurrency. There are those occasional spikes that result in big wins; however, the cryptocurrency market is very similar to the stock market. You win some and lose some.
Everyone has an opinion
The choice of investing in Bitcoin or any cryptocurrency will depend on what you are trying to do. Many progressive investors believe digital currency is the way of the future. Therefore, it should be considered a long-term investment rather than a get-rich-quick option. Even then, many skeptics see traditional forms of currency (paper and money) as the only way to trade.
The truth is that Bitcoin and many other cryptocurrencies are compared to gold. Gold is a tradable commodity that has gained tremendous value over time and, for this reason, many foresee the same future for Bitcoin. The next time you hear someone talk about investing in Bitcoin or breaking down the potential of cryptocurrencies, remember that they are reaping financial benefits. They were skeptical that they took a chance and are now making huge profits from taking a risk with the cryptocurrency market.
