Myths: Difference between revisions
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== Anyone with enough computing power can take over the network == | == Anyone with enough computing power can take over the network == | ||
== Fractional reserve banking is not possible == | == Fractional reserve banking is not possible == | ||
Revision as of 20:50, 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
Bitcoin is a form of domestic terrorism because it only harms the economic stability of the USA and its currency
Bitcoins can be printed/minted by anyone and are therefore worthless
Bitcoins are worthless because it's based on unproven cryptography
Same cryptography as everything else.
Early adopters are unfairly rewarded
21 million coins isn't enough, doesn't scale
Lost coins can't be replaced and this is bad
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.