What are the illusions surrounding Bitcoin?

Bitcoin is a peer-to-peer monetary system. This electronic money is based on the concept of a decentralized ledger. This means that unlike legal tender issued and regulated by the government of a country, Bitcoin is not regulated by any authoritative body. Instead, it uses a public ledger system. In the public ledger system, the transaction history of every Bitcoin token in circulation is taken into account.

The public ledger system is the public blockchain. Blockchain is accessible to all computer networks (also known as "nodes") that are deployed for mining. All miners can simultaneously audit and log transactions, and update the blockchain by creating new blocks. Due to the universal accessibility of the ledger on the Bitcoin computer network, transactions can be completed in seconds. The traditional ledger system used in banks usually takes a few days for completion, approval of any overseas transaction. It is for this reason that cryptos such as Bitcoin are a preferred mode of transaction when it comes to making large cross-border transactions.

When someone with a crypto wallet (wallets can be created through apps such as Bitcoin Quick Profit is trading with another account, this process is audited and approved by miners. Miners who calculate complex mathematical equations are able to approve a transaction. Transactions are recorded as blocks. These blocks are stored in consecutive order within the blockchain. This process of updating the blockchain with a new addition is called "mining". mining, miners can earn new bitcoins as a reward, this is how new bitcoins are created.

Recently, with the latest investment of $1.5 billion from tech mogul Elon Musk, Bitcoin has once again grabbed the headlines. The price of a single bitcoin broke above the $50,000 mark and is expected to hit the $100,000 mark before the end of this year. Since crypto is all the rage again, let's discuss the illusions and misconceptions surrounding Bitcoin right now.

Illusions around Bitcoin

1. Since bitcoin is a store of value like gold and other valuable commodities, people use bitcoins for speculation. They invest legal tender in the currency in order to make a profit. However, despite popular belief, Bitcoin is not just used for speculation. It is also used as an investment and trading currency. Tesla accepts payments via Bitcoin. A number of financial institutions like JP Morgan have invested in BTC to make cross-border transactions more efficient.
2. Bitcoin is said to waste a large amount of non-renewable energy and consume as much energy as an entire nation of Chile needs, in order to run these powerful computing nodes bitcoin transactions. That's the wrong way to look at technology. Any new technology, from motor vehicles to social media such as Facebook and Instagram, uses a lot of energy to operate. The energy used by Bitcoin is not wasted since its utility far outweighs the negative impact it has. Today, almost 40% of the entire Bitcoin network power supply comes from renewable sources. Developers should strive to make cryptos more eco-friendly and sustainable.
3. Every nation's government is believed to be against bitcoin because they have no regulatory power over it. While it is true that countries like Belarus, Russia is cautious about the usefulness of Bitcoin. China has banned bitcoin and crypto trading platforms. Skepticism is not universal. At MIT, courses are integrated with cryptocurrency technology. Countries like Canada and America prioritize the economic stability of the nation, which is why they have allowed cryptos to operate independently within their borders.
4. Bitcoin is also said to be a poor store of value due to its volatile and unpredictable market trends. It must be remembered that even the value of gold was unpredictable after its disintegration from the monetary system. It is true that compared to bonds and deposit facilities offered by government banks, cryptocurrency is indeed a volatile asset. However, it is known that the chances of returns are higher when the assets are volatile.

Conclusion:

Despite all the misconceptions and rumors going around, it must be recognized that Bitcoin has definitely created a new infrastructure for transactions in the digital age. It has made the network more accurate, reliable and much more efficient than the traditional banking system in many ways.