Bitcoin. Myths about bitcoin

With the development of the Internet there were also payment systems using virtual space. One of them was Bitcoin, which appeared in 2009, which uses the same currency for accounting. Its unusual in decentralization. Sami bitcoins are often called crypto currency.

There is a possibility of exchanging such units for real money. Anyone who wants can issue new bitkonov due to the computing power of computer equipment.

It is logical that such a virtual currency in a normal user causes a lot of questions. Often, instead of reasonable answers, people are forced to settle for rumors and myths, which should be considered in more detail.

Bitcoin – another virtual currency, no different from analogs.

In fact, all virtual currencies are managed by their own single center. This indicates that the number of units can be arbitrarily increased in accordance with the whims of the regulator. And an attack on it can completely destroy the entire payment system. And who prevents this center from taking one moment, and setting its own rules for handling its own bank notes? But bitcoins, due to their original decentralization, are deprived of such problems.

Bitcoin. Myths about bitcoin

Bitkoyny can not solve some problems, like gold or real money.

The difference from gold lies in the fact that bitcoins are much easier to store and transfer, they are difficult to forge, you can split units into smallest parts, and transactions are very fast. The difference from the real real money is that the issue of bitcoins is predictable and decreasing, and control of some center simply does not exist. There are also differences with phiatic electronic currencies. Bitkoyny may well be anonymous, as well as cash. Accounts of the same user can not be frozen.

Bitlocking is the CPU time.

Actually, it’s unreasonable to talk about this. First of all, talk of some kind of security speaks of a centralized binding to the exchange rate. But you can not change the bitcoins to the enormous computing power that is wasted when they are generated. So there is no security for such a currency, it is a valuable product. And do not be afraid. Even gold is not secured, being just a valuable metal. Something similar happens with bitkoy. This currency is created by computing processes, while this process is protected from attacks by the existence of a branched computer network.

In reality, bitkoyny are worthless, because they are not provided with anything.

Again we return to gold, which is also nothing, in fact is not provided. Nevertheless, it allows you to assess most of the currencies.

The value of bitocoins is how much electricity and processing power is required to generate them.

Thanks to this myth, someone tries to apply to laboronam labor theory of value. Not only is it considered by many to be generally false, and to this situation is simply not applicable. If you need X resources to create something, then this does not mean that the price of the final product will be X. The result can be more or less, depending on how useful it is to users. The theory itself, like this myth, suffers from a causal relationship. The cost of bitcoins is based on their value. If it increases, more and more people will try to generate a result. It’s more and more profitable! Accordingly, the complexity of generation will increase, making extraction of banknotes more difficult. If the price of bitcoins falls, then the opposite picture is observed. Such processes preserve the balance between the cost of the generation itself and the value of the generated currency.

Bitokoy has no intrinsic value, unlike other things.

Although many things can boast of having their own value, it is usually below market value. For example, gold.If a person thought of using it as a core value, resistant to inflation, then metal would be used exclusively in industry. Then gold would not be valued as it is now. After all, industry simply does not need as much “yellow metal” as a person now has. Thanks to history, some things have gained value as a means of exchange. However, this is not at all a vital necessity. Let bitkoynam and destiny is not destined to become a raw material for industry, these units have other useful qualities of exchange means. The value of bitcoins lies solely in the desire of people to trade them, that is, in demand and supply.

Bitcoins are in fact an illegal means of payment.

Who can prohibit a person from exchanging one thing for another? Barter between private individuals can not be illegal. Yes there are generally many currencies, which, in their essence, are not legal tender. And what is currency in general? This is just a convenient unit for calculating. Of course, national laws may have their own peculiarities, but in general the trade in exchange commodities, including digital goods (bitcoins, currencies of game virtual worlds, etc.) is considered quite acceptable.

Bitcoin is in fact a manifestation of some kind of internal terrorism. After all, such units harm the stability of the state, and its currency.

Any action in which violence is excluded, terrorism can no longer be considered. No one imposes bitcoins on someone violently. Terrorism also implies acts of intimidation of people, it is obvious that bitkoyny created not at all for this.

Bitcoins help to evade taxes, which adversely affects civilization as a whole.

It all depends on how much the user follows the laws enacted in his country. Do not forget that there is a reverse point of view – the development of society provides for a gradual reduction in the interference of authorities in people’s lives and in their business relations.

Since every bit can be created by everyone, there is no benefit in them.

To generate coins, you need quite a lot of processing power. The ideology of the system provides for the advent of the time when all the coins will be generated at all.

The uselessness of bitcoins lies in the use of unchecked cryptography.

Bitcoin uses known algorithms such as SHA-256 and ECDSA. They have already proven themselves as well-known industry-standard encryption standards.

The very first users of the payment system received unfair remuneration.

This is understandable because the first users took a higher risk of losing money and time. From a practical point of view, justice is a very conventional matter, it is simply impossible to reconcile it with all the numerous participants. The goal of the project is not to establish “justice”, because it is simply impossible. The vast majority of the created 21 million bitokoyn among people in general is not yet common. So if someone starts generating or acquiring bitcoins today, then he himself can become one of those very first users.

Generated 21 million coins are small, this is not enough for all of humanity.

Actually Bitcoin project provides for the existence of 2099999997690000 (more than two quadrillion) of the maximum possible indivisible units. Therefore, each bitokoyn can be divided into one hundred million parts. With the growing cost of bitcoins, people can easily work with the most microscopic units, such as millibitkans and microbitkans. Perhaps, over time, a denomination will be made with coefficients 1 to 10, 1 to 100, and so on.

Bitcoynes are stored in wallet files.

Some believe that you can just copy the wallet and so get more coins. In fact, this file contains only a secret private key that allows a person to dispose of his funds.It’s as if the bank gave the person the key to manage the account. But transferring it to someone does not increase the amount on the bank account. Just money will be spent by one or another person.

Lost coins can not be replaced.

In bitcoin, the minimum unit is 0.00000001, so the loss can become insignificant. The loss of the coin will cause the other coins to just grow slightly in value. So you can consider this a small gift for all other users of the system. There is a logical question: why there is no mechanism for replacing lost coins? In fact, it is impossible to distinguish a lost coin and that one, it is simply not used at the moment, but simply waiting for its time in the purse of some user.

Bitcoin. Myths about bitcoin

Bitcoin is actually a huge financial pyramid.

Classic financial pyramids were the Ponzi scheme, MMM. In them, the founders urged the users that they would certainly profit. Bitkoyn does not give any guarantees. There is no single managing center, just a group of people are building a new economy. But do not confuse the system itself with those projects on the Internet that take bitkoyny as deposits. Here they can be a financial pyramid, promising rapid enrichment.

The lost coins together with the limited emission give rise to a deflationary spiral.

The human factor is counteracted by both deflationary forces and economic reasons, for example, accumulation. This reduces the chances of a deflationary spiral.

The very idea of ​​bitcoins is unviable, since there is nothing to control inflation.

Inflation is the rise in prices over time, which is the result of currency depreciation. So the demand and supply function. A proposal bitkoynov is fixed, which is due to the peculiarity of emissions. This is the difference from fiat money. The only way to avoid inflation is simply the drop in demand for bitcoins. It should also be taken into account that this is a currency with a predictable decentralized emission. If demand decreases to zero, then bitcoins will be doomed. But hardly in the future it can happen. The key point is that this currency can not be depreciated drastically by inflation by some government or person or organization. After all, it will not be possible to significantly increase demand due to a standardized emission. Where the growing demand for bitcoins is more likely due to the popularity of this currency. As a result, there is a deflation, and the exchange rate is growing.

The community of users bikoyoyna – this is geeks, anarchists, conspiracy theorists, gold standard.

It’s hard to deny, but is not society itself even more colorful? So why be surprised?

Anyone with powerful computing behind them can take over the entire network.

This is so, but the huge costs required to implement such a plan simply will not pay off. Generating nodes becomes all the pain, so it’s more difficult for an organization to gain control. At present, the power of all private generating units is eight times greater than any supercomputer created, as well as the most well-known distribution network. And let one day some attacker can take the whole network under control. In fact, this will give him limited opportunities. After all, using someone else’s bitkoy, he still can not under any circumstances. The cracker can only cancel his recent translations or slow the passage of strangers. But are these advantages worth the dashing attack? So there are simply no rational economic reasons for carrying it out.

Bitcoins are violated by certain government regulations.

Only here nobody can name, which state norms are violated. At the moment there is not even a clear legal definition of the very generation of coins.

части Partial bank reservations are not possible in the Bitcoin system.

How do ordinary banks work? After the opening, they accept deposits, and part of them are issued in the form of loans. The main thing is that the funds with interest return. It is logical to assume that the withdrawal of depositors of all 100 percent of their deposits will bring down the system. Ordinary banks can not guarantee that this will not happen, hoping only for state insurance. In Bitkoyne it is not, but there is a belief in the common sense of users.

It is impossible to create a sales point that would take bitcoins, because at least 10 minutes are spent on confirming the transfer.

Confirmation of the translation can actually drag on for minutes and hours, in the foreseeable future nothing will change here. After all, even if the total computing power and grows many times, the generation complexity is immediately adjusted automatically to maintain a stable output of six blocks per hour. You can try to solve this problem in two ways. First of all, taking into account small transfers, you can trust the client, giving him the goods, without waiting for confirmation of the arrival of funds. The translation itself will come almost instantly, which the seller will see. If the client wants to return these bitcoins and spend them somewhere else, then he will have to spend quite a lot of money for such an attack. As a result, a petty scam will lose all meaning. And no one canceled the prepayment system. You can ask the client to replenish the account first, and then freely dispose of these funds. Other convenient and safe methods have not yet been found.

After the production of 21 million coins, no one will generate blocks confirming the transfers.

It may be that the generation costs will no longer be covered by the reward for creating the unit. And this can happen before reaching the maximum number of bitocans. But the miners can profit from the commission for the transfer of funds. In the generation of new blocks will be interested and bitokoynov holder, because if the generation stops, then their means will lose all value.

It’s bad that there is no built-in mechanism for canceling payments.

Ability to cancel payments fraught with the appearance of scammers. It’s good if large organizations like PayPal are responsible for preventing the actions of intruders. For example, if after a transaction on eBay the seller did not send the goods, the money from his account is withdrawn and returned to the buyer. This measure only strengthens the economy of online auction, because buyers understand the low risks, making even risky purchases. If a person owns bitocoins, then they can only belong to him, that’s the whole point. If you allow users to cancel payments, this will allow attackers to withdraw funds. As a result, people have to choose – either full control over their funds, or protection from fraud, as in the case of PayPal. And the one and the other at the same time just will not work. The owner of bitkoynov himself is responsible for preventing fraud. All power over money in the hands of the user. And the crooks were always, so it’s worth sending their bitcoins only to trusted addressees.

The advent of quantum computers will destroy the security of the Bitcoins system.

This is theoretically possible, only such quantum computers that could compete with conventional computers at the moment simply do not exist. If the security of bitocans is threatened, then nothing prevents going to post-quantum cryptography. Only because productive quantum computers will prove dangerous for ordinary banks. After all, those in conducting payments are guided by the same cryptography.

Generation bitkoynov environmentally harmful to the environment and costly from an energy point of view.

And what to say then about the mining of gold from the ground, and then its melting and shaping it? People build huge buildings of fancy shape to store money there, energy is spent on printing or chasing fiat money.But there is also the transportation of currencies in armored cars with security guards. Are such people can not do something more useful? So bitkoyny are much more economical resource in comparison with others.

Shop owners can not put their prices in bitcoins because of the constantly changing exchange rate.

This myth is based on the opinion that bitcoins should be sold immediately to cover their expenses. But it is not necessary to do this, we must first understand whether there is a need for this. In addition, no one interferes with selling this virtual currency later, when the need really appears and the course will be more profitable. And the fact that small trading volumes affect the course quite a lot is true. But in the future this should change, because the volume of turnover is constantly increasing. And many merchants just regularly update prices on sites in bitkoynah, which correspond to the current rate. There is also the possibility of concluding an option to sell at a fixed price for a certain time. This can really help to protect yourself from the course jumps and will simplify the calculation of the price.

Like the infamous Flooz currencies, E-gold bitcops are great for use by criminals.

It is not necessary to prophesy this currency an early death. Users hope that the system will soon develop so that no organization will be able to eliminate Bitcoin. Would not it be better to join the progressive movement? And is it necessary to fight the terrorist tool, not against them? The suicide bombers send planes to buildings, but this does not force them to ban planes. Public good outweighs possible consequences. And between different jurisdictions there is no single criminal law.

Bitkoyny will soon be liquidated by the government, as it happened at the time with Liberty Dollar.

The name Liberty Dollar is associated with a rather risky attempt to introduce an alternative currency in America. At the same time were issued quite physical coins and banknotes, which were provided with precious metals. The US authorities immediately banned these free dollars, accusing the organizers of the system of making counterfeit money and attempting fraud. Unlike Liberty Dollar, bitcoins are neither physical nor commercial tools, and in general are not provided with anything.

Actually Bitcoin is a fraudulent scheme invented for quick earning on the Internet.

And again we will repeat that Bitkoyn himself is not connected with the schemes of fast earnings, the system does not promise any superprofits. Even the creators of the official client program do not earn money on the participants, as they do not receive any money from them. It is worth considering Bitcoin, as an experimental payment system with its own currency. Yes, it can become successful, as it can and fail in the end. At the same time, no developer expects wealth from participating in the program. And scammers, of course, can use in their schemes Bitcoin, however, like any other payment system.

It’s enough just to install the Biktoy-client on the computer to start making money.

By itself, the installation of the client does not bring any money. After all, this is essentially just a purse. We are not waiting for WebMoney to open a purse, which will start to drip money there? Some people earn with the help of mining, solving a complex computing task. For this, special software and hardware are used. But the mistake will be to think that earning coins with the help of mining is the sole purpose of the existence of the system. In fact, it is just an auxiliary function of money issue and network protection. Some people in general are engaged in mining just out of love for the project, without earning anything at the same time. Bitcoin is an excellent opportunity to invest your funds.

In this issue, it is worthwhile to exercise prudence.This is a new electronic currency, whose real value is not provided by any organization or government. Like all currencies, its value is formed from the fact that people are ready to change their services or goods to it. The course of bitcoins is constantly changing. So investing in this currency is fraught with great risk. In addition, at an early stage the system lacks a large prevalence, which leads to its vulnerability. Over time, Bitkoyn will become much more famous, stability will increase, but so far the course is unpredictable jumps. So any investments of real money in this payment system should be carefully thought out, we must draw up a clear plan that would manage possible risks. Of course, the deflationary model itself implies the appreciation of the currency over time, but it is still not guaranteed by anyone. So it’s not worth investing in Bitkoyn the last money as an investment.

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