6 most common myths about Bitcoin

Is Bitcoin - the next pyramid, whether environmental mining harms the environment and whether cryptocurrency in Russia is illegal - Layfhaker understands what is true and what is false.

Myth 1. Bitcoin - a bubble that could burst

In the traditional sense of bitcoin is really backed by nothing. You can not exchange cryptocurrency on the computing power that was used to create it.

Bitcoin - an independent currency. Its value depends on how it is valued by the people of their faith in it.

An important indicator - the willingness and desire to use cryptocurrency as traditional analog currency exchange equivalent. Thus, bitcoin exchange rate is determined solely by demand for it. One example is the gold, which is also in no way guaranteed, but has for many centuries has a certain value.

The higher the price cryptocurrency than more opportunities for them to use, the more they extract. That, in turn, increases the complexity of the production process.

Myth 2. Bitcoin can get anyone

Get bitcoins is very difficult today. Gone are the days when individual users do - miners. Now it is happening on a huge costly mining-farms.

For cost of mining bitcoins need to invest millions of rubles equipment.

One bitcoin, as of September 6, worth more than 4.5 thousand dollars. Compensation for each extracted block (recordable in the web file that contains information on past transactions) is 12.5 bitcoin.

In 2020, the unit price drops by half. Reward is halved after every 210 tysyach extracted blocks.

Most other cryptocurrency produce simpler and less expensive, but their price is much lower.

Myth 3. bitcoins management of the network can be easily intercepted

The more nodes that generate bitcoins, the harder it is for one person or group to establish control over the network. To commit such an attack will require equipment costing hundreds of millions of dollars. Plus energy costs comparable to the consumption of a large enterprise.

Economic sense to monitor the network simply does not. Attackers can not use Bitcoin, being in other people's purses.

Lose bitcoins is possible, but only with the loss of access to your wallet. Each owner has their private keys. And if they lose, there will be no access to stored or produced cryptocurrency.

Myth 4. Bitcoins are illegal, their use can be a problem

Cryptocurrency officially recognized in many countries. In Japan, bitcoin is considered legal tender. He also recognized the estimated monetary unit in Germany, China (for individuals), Switzerland.

In Russia there is no legislation governing the handling cryptocurrency. However, that is not forbidden is allowed.

The intention to move to the calculations in the sale of SUVs cryptocurrency stated at the Ulyanovsk Automobile Plant. Sberbank's representatives publicly voiced the opinion that "nothing prevents a small business to use bitcoin today." Own cryptocurrency (vopperkoin) decided to enter the Russian division Burger King network.

In Russia, founded the Association cryptocurrency and blokcheyna. Its purpose - to combine market participants blokcheyn technologies, cryptocurrency owners, miners, investors who make investments in ICO projects.

While turnover cryptocurrency in Russia remains officially legalized. A few days ago the Central Bank of the Russian Federation issued a warning an increased risk of using and investing in cryptocurrency. The statement said that because of "the anonymous nature of the production of cryptocurrency" people may be involved in illegal activities, including money laundering and terrorist financing.

However, the central bank has also issued a state accreditation Far East trading platform "Sunrise" to work with cryptocurrency. It is possible that a surplus of energy in the Far East and Siberia will be used for mining. About it quite seriously, officials say.

In any case, the State Duma will consider a bill to regulate cryptocurrency where bans on their use are not provided.

Myth 5. Bitcoins and other cryptocurrency like a pyramid scheme

Ponzi scheme can be created in any currency. And therefore bitcoins may well be used as a means of payment when making financial fraud. But no one accuses the ruble that famous "MMM" has been created.

Ponzi scheme works on a different scheme. Income members of this structure is provided by a constant attraction of new funds. The first investors get funds due to the contribution of those who came later. Stop the flow of money - the pyramid collapses.

In the case of Bitcoin is also a risk: its rate can fall sharply. As well as an equally sharp rise.

It is difficult to clearly predict whether or not to invest in cryptocurrency. It is unlikely that bitcoin will bring fabulous income: those days are over.

Myth 6. Mining bitcoins harms ecology

This myth is based on the fact that for generating cryptocurrency, maintaining computing power requires a large amount of power. In fact, energy consumption bitcoins network is similar to a city where 100,000 people live.

But not everyone believes that the damage from mining cryptocurrency exaggerated. In Russia, proposed a ban on farm installation for mining in residential apartments and houses.

Farm for mining several times increased power consumption and contribute to a marked increase in the temperature in the premises. This can be dangerous for other tenants, especially if the house is old.

Opponents of the ban believe that the rise in temperature at the farms can be used for good, for example, for space heating. In addition, it is unclear how it is possible to control such a ban. After equipment of mining - it is often a personal computer, even if it improved.

At the same time in the development of the Internet Institute (IRI) has already stated that one of the Russian regions (not yet known which one) will provide farm owners for mining concessions for electricity. This decision is explained by the desire to bring Russia into the lead mining cryptocurrency.