So, you’ve heard about Bitcoin. But what is it and what does it do? What’s all the hype about? What are its advantages? Does it solve the double-spend problem? And is it a safe haven for the 40% of the world’s population without access to the Internet? Let’s take a look at some of the myths about bitcoin. Here are three myths about bitcoin that you must be aware of.
1. By the year 2021, every single bitcoin will be mined
The Bitcoin network was created in 2009, and at this point, a single block will yield approximately 6.25 Bitcoin. This number will double every four years, bringing the total supply of BTC to 21 million. But this doesn’t mean that all of these coins will be mined by the year 2021. The supply of Bitcoin will be much smaller in the years to come, because the mining process is extremely energy-intensive and environmentally harmful. Once the price falls, miners will have no incentive to continue mining. Once that point is reached, no new Bitcoin will be created.
The mining process itself is becoming more difficult and complex, and it is also consuming more energy. According to the Cambridge Bitcoin Electricity Consumption Index, each Bitcoin transaction uses as much electricity as two U.S. households use in a year. And with no renewables available in China, the cost of mining a single Bitcoin will reach $176 per transaction. It will cost a U.S. household about nine years of electricity to mine a single Bitcoin by 2021.
2. It solves the double-spend problem without relying on a third party
Blockchain technology is the solution to the double-spend problem. Blockchain records all transactions and stores the recipients’ public keys. A single transaction in the Bitcoin network will never double-spend. A Bitcoin transaction is only recorded on the blockchain if it has been recorded by all users. Bitcoins are decentralized, meaning that all network members have access to them, so it is impossible to steal another user’s coin.
A double-spend is when the sender of a transaction intentionally replaces the same transaction sent to another recipient. The sender of the transaction will wait six confirmations before finalizing the payment. This prevents fraud, as the sender and the recipient are likely the same person. The double-spend problem is also mitigated by the fact that everyone has to view the same log in the same order.
3. It’s not a safe haven for the 40% of people who don’t have access to the internet
While the rise of the Internet has made it easy for millions of people to transact in digital currencies, Bitcoin is not a safe haven for those who don’t have access to the web. Several economists have suggested that the digital currency is not a safe haven for the 40% of the world’s population that doesn’t have access to the internet.
As the global population has grown, Bitcoin has become less useful. It is extremely slow and expensive to use, and transactions take at least ten minutes to process. Furthermore, it costs $20 per transaction. For the 40% of people who don’t have access to the Internet, Bitcoin is an unsustainable way to transact. Even if it is an ideal place to transact, it is a bad choice as a medium of exchange. A $10 bill can buy a cheap beer one day and a fine wine the next.
4. It’s an influencer, media, and attention-driven market
Creating awareness of your cryptocurrency product is not an easy task. You can start by researching influencers on the Internet. To find the most popular crypto influencers, you can use hashtags like #Crypto. Once you find the accounts, make a spreadsheet of their usernames, number of subscribers, and followers. You will need about fifty to one hundred names to target. After identifying these influencers, you can focus your marketing efforts on them.
Once upon a time, influencer marketing involved writing blog posts. Today, influencers use a variety of platforms, from YouTube to TikTok. One YouTube influencer could create a ten-minute video discussing the project in question and hinting at reasons to invest. Another influencer could craft a 30-second video. Another example would be Twitter. Influencers can make threads on their feeds about the cryptocurrency project they are supporting.