Myths: Difference between revisions
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== Bitcoins can be printed/minted by anyone and is therefore worthless == | == Bitcoins can be printed/minted by anyone and is therefore worthless == | ||
== Bitcoins are worthless because it's based on unproven cryptography == | |||
Same cryptography as everything else. | |||
== Early adopters are unfairly rewarded == | == Early adopters are unfairly rewarded == | ||
Revision as of 20:30, 23 March 2011
Lets clear up common Bitcoin misconceptions.
The bitcoin is backed by CPU cycles
Bitcoin is not backed by anything. It is a commodity in its own right. Is gold backed by anything? No! It's just gold. Same thing with bitcoin.
The Bitcoin currency is protected when adequate computing power exists.
Bitcoins have no intrinsic value (unlike some other things)
Bitcoins are illegal because it's not legal tender
Bitcoins can be printed/minted by anyone and is therefore worthless
Bitcoins are worthless because it's based on unproven cryptography
Same cryptography as everything else.
Early adopters are unfairly rewarded
It's a giant ponzi scheme
Not to be confused with the Bitcoin Randomizer which really is a Ponzi scheme.
Deflationary spiral
As deflationary forces may apply, economic factors such as hoarding are offset by human factors that may lessen the chances that a Deflationary spiral will occur.