Myths

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Revision as of 06:48, 15 January 2011 by Sgornick (talk | contribs) (→‎Deflationary spiral: Add link to article.)
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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.

Early adopters are unfairly rewarded

It's a giant ponzi scheme

Deflationary spiral

As deflationary forces occur, economic factors such as hoarding are offset by human factors that may lessen the chances that a {[Deflationary spiral]] will occur.