Debunking Common Bitcoin Rumors: BTC Is Secure and Safe

2023-01-04, 06:54

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/blog/165042832718348369crypto101_web.jpg)

**<font size=3>[TL; DR]</font>**
🔹 [Bitcoin](https://www.gate.io/trade/BTC_USDT) is secure and safe to use since it is a decentralized digital asset which no one has complete control over.

🔹 The utility and scarcity of [Bitcoin](https://www.gate.io/trade/BTC_USDT) gives it its value, making it a suitable medium of exchange.

🔹 Governments cannot shut down [Bitcoin](https://www.gate.io/trade/BTC_USDT) although they can ban it in their countries.

🔹 El Salvador and the Central African Republic are two countries that have made BTC a legal tender.
## Introduction
[Bitcoin](https://www.gate.io/trade/BTC_USDT), which is a digital form of money, was introduced in 2009 by [Satoshi Nakamoto](https://www.gate.io/blog_detail/626/Who-is-Satoshi-Nakamoto-Here-are-the-best-guesses "Satoshi Nakamoto") who is its creator. Since those early days, several myths about [Bitcoin](https://www.gate.io/trade/BTC_USDT) and other cryptocurrencies exist. Today, we will debunk common [Bitcoin](https://www.gate.io/trade/BTC_USDT) myths and answer the most frequently asked questions about [Bitcoin](https://www.gate.io/trade/BTC_USDT).
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) is a bubble
One of the prevalent myths about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that it is a bubble.  The reason why many people think that [Bitcoin](https://www.gate.io/trade/BTC_USDT) is a bubble is because some investors who buy and hold it tend to get high returns. The time frame to get profit depends on the existing market conditions. Conversely, investors may generate losses if the value of [Bitcoin](https://www.gate.io/trade/BTC_USDT) tumbles. However, this does not qualify BTC to be a bubble.

Bubbles are economic cycles with high and unsustainable price increases. In this case, the realized value of the asset is much higher than its fundamental value. In contrast, the price of [Bitcoin](https://www.gate.io/trade/BTC_USDT) has been rising steadily over a long period. For example, it rose from less than $1.00 in 2009 to over $69,000 within 12 years.

![](https://gimg2.gateimg.com/image/article/16769731319701676973104_.pic.jpg)
<a href="/ru/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> isn’t a bubble- Yale

The constant growth in its price resulted from its wider adoption over time. For example, many institutional investors have [purchased and own BTC](https://www.gate.io/blog_detail/1685/How-to-Buy-and-Store-Non-fungible-Tokens "purchased and own BTC"). Moreover, there are two countries El Salvador and Central Africa Republic which have adopted it as a legal tender.
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) is anonymous
The second myth about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that it is anonymous, meaning that it is not possible to identify individuals who own certain amounts of BTC or know the people who make certain transactions.The reason for this assumption is that people use wallet addresses when making transactions not their real names.  They believe that since people use their [private and public keys](https://www.gate.io/blog_detail/1736/Rubic-Loses--1-000-000-In-Private-Key-Exploit--MATIC-Adoption-Causing-Anticipation-For-Up-To--200--Gains- "private and public keys") when sending or receiving BTC their identities can never be known.

Nevertheless, there are several ways of identifying the identities of owners of the different wallet addresses and the BTC transactions they make. For example, many people purchase BTC using their credit cards or bank transfers.  Through this, relevant authorities can identify the wallet owners and the BTC transactions they make. In other words, some service providers know their identities but keep them a <a href="/ru/price/secret-scrt" target="_blank" class="blog_inner_link">Secret</a>.

Also, there are certain DeFi and other crypto platforms that require individuals to verify their identities through providing their national identity registrations or passport details. In addition, there are blockchain analysis tools such as Elliptic which track the movement of digital assets such as BTC on the blockchain. They are able to identify the identities of certain wallet holders through their tracking systems.
## Only criminals use [Bitcoin](https://www.gate.io/trade/BTC_USDT)
Certain people criticize [Bitcoin](https://www.gate.io/trade/BTC_USDT) due to the fact that some criminal elements in the world use it for illegal activities such as purchasing and selling drugs. They also point out the existence of the dark web with illegal marketplaces where people use BTC as means of payment.  Another criticism is that terrorists use BTC as a means to raise funds for their activities. The list of the purported criminal activities where BTC and other cryptocurrencies are used is long.

However, these bad actors also use fiat currency to carry out these criminal activities. Interestingly, these criminals also use many assets and equipment. For example, terrorists use mobile phones, vehicles and bank accounts to carry out their activities. Therefore, it is not [Bitcoin](https://www.gate.io/trade/BTC_USDT) which is bad but the criminals who use different assets and currencies to pursue their criminal motives.

The truth about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that many people around the world use it for charity and other developmental projects. For example, with BTC it is very convenient for people to donate to individuals and countries that need help. For example, many people [donate funds through](https://www.gate.io/charity "donate funds through") BTC to charities across the globe. After all, a [report](https://info.elliptic.co/whitepaper-fdd-bitcoin-laundering "report") by blockchain forensic companies FDD and Elliptic conclude that less than 1% of all [Bitcoin](https://www.gate.io/trade/BTC_USDT) transactions are used in illegal activities.
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) doesn’t have real value
One of the lies about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that it does not have real value. Some people say that [Bitcoin](https://www.gate.io/trade/BTC_USDT) has no real value because it is not backed by anything. They also say that BTC is not tangible and cannot be turned into other things. As such, they say BTC is different from gold which people can turn into other things such as jewelry.

However, this argument is invalid considering that BTC meets two fundamental conditions of economic value namely scarcity and utility. The truth about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that it has a limited supply of 21 million. Therefore, it has the potential to become one of the most valuable means of payment. Its supply is far less than that of fiat currencies which do not have a limit and are not backed by anything as well.

Likewise, BTC is produced through much computing power. As such, people use  important economic resources such as large mining rigs, human resources and electricity to produce [Bitcoin](https://www.gate.io/trade/BTC_USDT), making it very valuable.
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) has no real world use cases
One of the greatest lies that some critics have been peddling is that [Bitcoin](https://www.gate.io/trade/BTC_USDT) has no real world use cases.  In fact, [Bitcoin](https://www.gate.io/trade/BTC_USDT) has emerged as one of the best inventions of our century since it facilitates borderless payments without involving any third parties. Therefore, it has made it very convenient for people around the world to make cheaper international payments.

![](https://gimg2.gateimg.com/image/article/16769733169711676973301_.pic_hd.jpg)
Many ecommerce stores accept BTC- Bitpay

The major driver of the utility of BTC is its scarcity. Apart from having 21 million BTC, the amount added to the blockchain continues to decline through the halving event, a process where the reward for mining [Bitcoin](https://www.gate.io/trade/BTC_USDT) is reduced by half after an addition of 210 000 blocks to the blockchain.

Currently, many people without banks around the world find it best to use BTC when making payments. Already, many companies have added BTC as an asset on their balance sheets, showing how valuable it is.
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) will be replaced by competition
Some opponents of BTC believe that it will become obsolete once another competitor takes over. Currently, [Bitcoin](https://www.gate.io/trade/BTC_USDT) is the number one cryptocurrency based on market capitalization. Also, many institutional investors hold large quantities of BTC because they value it.  In addition, we have countries such as El Salvador that have adopted BTC as a legal tender.

It is worth noting that a major reason why many investors value BTC is its secure code which has never been hacked. This is different from many other cryptocurrencies that have been hacked over the years. However, it is a fact that competition for BTC will increase but that will not mean it will become obsolete and be replaced by a competitor.
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) is not secure
There are many common misconceptions about [Bitcoin](https://www.gate.io/trade/BTC_USDT). For example, some critics say that [Bitcoin](https://www.gate.io/trade/BTC_USDT) is not secure. By this, they imply that there is potential that some malicious actors will, one day, breach its security and steal or destroy it. However, the truth is that no one has ever been successful in hacking the [Bitcoin](https://www.gate.io/trade/BTC_USDT) blockchain despite widespread attempts to do so.

Another fact about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that it was the first cryptocurrency to be used as a medium of exchange as well as an investment asset. As such, it made the trustless peer-to-peer transactions possible. The good thing is that there is no possibility of double spending since the transactions are irreversible. Likewise, a permanent record is made on the blockchain for every transaction.

Hackers can only steal [Bitcoin](https://www.gate.io/trade/BTC_USDT) through hacking from crypto exchanges and other DeFi platforms. The main reasons why some people think that BTC is not secure are the hacks that occur on exchanges. For example, during the early days of cryptocurrencies malicious actors hacked the Japan-based crypto exchange Mt. Gox and stole [Bitcoin](https://www.gate.io/trade/BTC_USDT).
## [Bitcoin](https://www.gate.io/trade/BTC_USDT) is bad for the environment
Another big misconception about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that it damages the environment through much energy consumption during the mining process.  Some analysts say that [Bitcoin](https://www.gate.io/trade/BTC_USDT) uses around 62.85 terawatts of energy per year which is more than what other countries such as Chile and Switzerland use within the same period.

![](https://gimg2.gateimg.com/image/article/16769734429721676973392_.pic.jpg)
Critics say BTC mining has high carbon prints- Greenmatters

The above amount of energy may seem much. However, if we compare this to other industries we can conclude that such amount of energy is relatively low. According to one researcher, the global banking sector alone [consumes](https://bitsonline.com/bitcoin-vs-banks-uses-energy/ "consumes") more than 100 terawatts per year. However, no one has complained about such energy consumption. Despite the energy consumption during BTC mining, it is important to note that [Bitcoin](https://www.gate.io/trade/BTC_USDT) generates more than $1 trillion in value for millions of people around the world.

Notably, the [Bitcoin](https://www.gate.io/trade/BTC_USDT) mining sector is shifting to using green energy in their operations. Most mining firms now use geothermal and hydroelectric power. This is because the main concern of environmentalists about [Bitcoin](https://www.gate.io/trade/BTC_USDT) damaging the environment is the attributed carbon footprint.
## The government could shut down [Bitcoin](https://www.gate.io/trade/BTC_USDT)
 Another myth about [Bitcoin](https://www.gate.io/trade/BTC_USDT) is that governments can shut it. Whereas, such a sentiment may seem reasonable it is difficult for any government to shut down [Bitcoin](https://www.gate.io/trade/BTC_USDT). Its decentralized nature makes it impossible for any government to destroy or confiscate it without full permission. This is because the miners are responsible for verifying all transactions. There is no single central authority that controls it.

Governments and banks do not have power over [Bitcoin](https://www.gate.io/trade/BTC_USDT). As long as every user keeps his/her private keys safely, no one can take his/her BTC. For someone to control [Bitcoin](https://www.gate.io/trade/BTC_USDT) he/she should have over 50% of the network’s computational power. However, that is difficult because that power is distributed to individuals around the world.

The only way that governments can control the use of BTC is to ban it in their countries. Nonetheless, it still remains very difficult for them to enforce such a ban as BTC is decentralized. To effect a BTC ban the government would have to fork out billions of dollars per year which is highly exorbitant and prohibitive.
## Conclusion
This article has helped to debunk common [Bitcoin](https://www.gate.io/trade/BTC_USDT) myths such as governments can shut down BTC. However, due to its decentralized nature no one can shut it down. It’s important to note that BTC has value due to its scarcity and utility. Having discussed the above, we can conclude that [Bitcoin](https://www.gate.io/trade/BTC_USDT) is secure and people can safely use it.

## FAQ
### What is the biggest argument against [Bitcoin](https://www.gate.io/trade/BTC_USDT)?
Many critics believe that [Bitcoin](https://www.gate.io/trade/BTC_USDT) is a bubble that will one day become obsolete. However, the price of BTC has been growing steadily over a long period. The increase in its price was a result of an increase in its adoption by institutional and retail investors.

### Is [Bitcoin](https://www.gate.io/trade/BTC_USDT) worthless without the internet?
[Bitcoin](https://www.gate.io/trade/BTC_USDT) is a digital currency which circulates on the internet.  Currently, it is mostly impossible to use [Bitcoin](https://www.gate.io/trade/BTC_USDT) without the internet. However, there are companies that are working on possible systems to transmit [Bitcoin](https://www.gate.io/trade/BTC_USDT) without the internet.

### Can [Bitcoin](https://www.gate.io/trade/BTC_USDT) ever reach a million dollars?
It is possible for the price of [Bitcoin](https://www.gate.io/trade/BTC_USDT) to reach $1 million in the very long run when many people adopt it.  Many people believe that BTC will reach that value beyond the year 2030.

### What can you buy with [Bitcoin](https://www.gate.io/trade/BTC_USDT)?
[Bitcoin](https://www.gate.io/trade/BTC_USDT) is widely used and people can pay for accommodation, travelling services, vehicles, electronic gadgets and many more. In countries where it is used as a legal tender people can pay for almost all services and goods using BTC.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>