Myths: Difference between revisions
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== After 21 million coins are mined, no one will run network nodes == | == After 21 million coins are mined, no one will run network nodes == | ||
Actually all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes. | Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes. | ||
== Bitcoin has no built-in chargeback mechanism, and this is bad == | == Bitcoin has no built-in chargeback mechanism, and this is bad == | ||
== Bitcoin is just like all the other virtual currencies, nothing new == | == Bitcoin is just like all the other virtual currencies, nothing new == | ||
Revision as of 21:00, 23 March 2011
Lets clear up common Bitcoin misconceptions.
Bitcoins don't solve any problems that fiat and/or gold doesn't solve
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.
Bitcoin community are anarchist/conspiracy theorist/gold standard weenies
Anyone with enough computing power can take over the network
Bitcoin violates some sort of government regulations
Fractional reserve banking is not possible
Point of sale with bitcoins isn't possible because of the 10 minute wait for confirmation
After 21 million coins are mined, no one will run network nodes
Actually, all 21 million coins will never be fully mined. Before the 21 million mark is reached, an infinite amount of fractions from the final BTC will be generated for nodes. Transaction fees will also incentivise the running of network nodes.