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Revision as of 20:35, 23 March 2011 by EvanR (talk | contribs)
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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.

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

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