Topic: Common misconceptions about cryptocurrency (Bitcoin) (Read 382 times)

It is wrong to refer to Bitcoin as 'Crypto' or 'Cryptocurrencies'.
It is also wrong to refer to Bitcoin as 'not Crypto' or 'not Cryptocurrency' though.

Bitcoin is a Cryptocurrency.  If some body writes up an article about Bitcoin but never mentions its name, that is a writing mistake and misleading, yes.

In my opinion, calling bitcoin crypto can be misleading cause as a newbie learning all the quality features about bitcoin without knowing the difference can get mixed up when   writing. The name Cryptocurrencies is a general name so it's best to be specific when writing like what the op wrote. I'm more familiar with the name bitcoin but still if anyone is writing about cryptocurrency with the quality feature of bitcoin I will definitely know the person is referring to bitcoin.

Many users who are new to cryptocurrency start their journey with some common misconceptions. When they start their journey with common misconceptions, these misconceptions stay with them for a long time and they shy away from various things with these misconceptions. Many of us may think that the market is controlled by others or that there is a certain hand behind the names that appear in the market, but the truth behind this is that the market is controlled by ordinary investors. If there is an oversupply of a commodity in the market and people do not want to buy that commodity, the sellers are forced to sell that commodity at a lower price. If there is no product in the market, but the demand for that product is high, the seller will increase the price and the buyer will buy the product at a higher price. The kind of buying and selling at higher prices that I mentioned usually happens in the crypto market.

This tax issue is based on location and legalization in a particular country and sometimes it is based on exposure a country has in digital marketing. In my country, no tax is fixed in our crypto transactions yet although it is not open and legalized which is why I think it depends on your country’s regulatory system.

It actually does have use but most newbies come with the mindset of making money. Some of them don’t even know what is the use of the crypto currencies, meanwhile, we are using them for payment methods as alternative to fiat currencies to have financial freedom and have in traceable transactions because of privacy.

Well it is true that

Cryptocurrency ≠ Bitcoin

but

Bitcoin = Cryptocurrency

So  this statement


used cryptocurrency as a general term, and Bitcoin being under the umbrella of cryptocurrency, simply means Bitcoin can be described as cryptocurrency since Bitcoin is really a cryptocurrency.



In addition, knowing basic stuff is the best step for investors.  Knowing facts from myths can help new investors avoid scams and stay away from people who love exploiting beginners.  It can prevent unnecessary losses and can help investors establish their investment venture with less hassles.

In addition wiki has lots of Bitcoin myths if someone is interested you can just check here: https://en.bitcoin.it/wiki/Myths

More articles to read about Bitcoin/cryptocurrency Myths:

https://blog.trezor.io/bitcoins-biggest-myths-f46268f9a372
https://moneyminiblog.com/investing/bitcoin-myths/
https://www.investopedia.com/tech/top-bitcoin-myths/
https://support.bittime.com/hc/en-us/articles/8896770151311-15-Myths-and-Facts-About-Bitcoin-Check-the-Details

I am only going to talk about bitcoin here, not crypto in general.
Bitcoin does require some time to get used to it, particularly if you have been mindlessly swiping your card everywhere without thinking about anything else.

With bitcoin, you have to think about several things if you want to play the game as best and as safe as possible. There is no support center to call if you make a serious mistake, like you can with traditional banking. You have to generate your seed safely and store it properly. If you lose it, you have most probably lost your bitcoins. You have to learn how to use a bitcoin wallet, send and receive transactions, figure out how much to pay in fees. It's important to stay cautious of viruses, malware, and scams. Verifying and double checking your entries before paying isn't something we do when paying with a card. It's essential for bitcoin, though.

Preferably, you are going to have different wallets for different use cases. It's best to combine cold and hardware wallets  with hot online wallets when you are out and about, for example. If you want maximum privacy and security, you are going to have to run your own node and set up an airgapped system. Then you will need some time mastering working with PSBTs and public keys. All of these are new concepts the first time you try them out.

When I said the above I knew what it meant for someone to share valuable informations in the forum, even if one want to grab merits it's better done in a way that its worth meriting not just teaching without clue of what you're really teaching or maybe you read some article and decided to reframe and post forgetting that the forum has lasted over decades and almost all the articles where inspired from good/quality informations in the forum.

So I just decided to let the OP know about this in order to up his game before he would post again but i mean harm or I wasn't tryna criticize him but some people like the below took it as an attack.


I decide to over look such response because I was confident of what I was saying. This kind of people are the people who go to meta to scream that other high ranked members attacks them or bully them, I once discussed such thing with pmalek and he made so many corrections yet this members don't really get the information.

I think one big force that drives this kind of response is the fact that I'm also a newbie in the crypto space like him, well to teamsherry I'm not in position to argue with you because I believe I'm one of the youngest people in this forum with age, so you might be far older than I am, so I can't argue with an elder.

Maybe because they also want to get fast merit for their thread created? Usually they do this just because they think that there are so many people will give a merit to a thread created. But they forget to know that they should be more informative and also the words they posted is accurate so that people will not get confused on what they are trying to write here. Its good that there are people correct him regarding on misconceptions in mind and for sure he learn something from the thread he created.

Newbie should learn first before they try to teach other so that they can share more valuable information and not those misleading one.

I don't completely agree with this. Regulatory shifts and market sentiments that are related to traditional markets barely affect the cryptocurrency market unless they are directed at the cryptocurrency market. Those who think that regulatory shifts and market sentiments of other markets don't affect cryptocurrencies are right because you don't see Bitcoin going up because of positive sentiments in the stock market unless there is something positive happening for Bitcoin itself.

Bitcoin and cryptocurrencies are affected only when there is some news or event about the cryptocurrencies and market sentiments affect the prices of cryptocurrencies when those sentiments either make investors buy or sell certain cryptocurrencies.

I'm with you on this. I also disagree with them or this particular sentiment. Whether the cryptocurrency market is clean or dirty isn't the point. I guess we just have to bear with it. But Bitcoin will remain to be a cryptocurrency. We can't just pull Bitcoin out of that category simply because the market has already gone muddy with all the shitcoins and scams and centralizations.

It's ironic that a lot on social media who proclaim Bitcoin, not crypto or Bitcoin isn't crypto are themselves using and even promoting centralized platforms.

Reading your thread - I remembered a thread I made in the past, it still had to do with some myths and facts.

Myth vs Facts and My Assumptions about Bitcoin

---

Bitcoin is a cryptocurrency despite its decentralized nature. I agree with that opinion even though it seems like there are some of us who don't agree with it. Bitcoin was the first decentralized cryptocurrency - while its derivatives are called altcoin regardless of whether they are centralized or decentralized like bitcoin.

But bitcoin Wiki defines it like this: https://en.bitcoin.it/wiki/Help:FAQ#What_is_Bitcoin.3F

It is hod we understand that cryptocurrency is not a get rich scheme so we need to avoid it if we are so interested about making fast profits without waiting for the bull market to commence before we start taking profits.
There are plenty of things we need to learn about the crypto market and we don't need to rush things. Everything should be gradually so that we can keep doing the right things that would give us profits.

Because they believe the only time they can get merit is when they are teaching, they think if they are learning, then they won’t be receiving merit when they are learning. But the most surprising part is, how will you be teaching something you don’t really know much about? Most of them will just go and read pdf, and they will decide to rewrite the post and drop it here. Some of them won’t even rewrite, they will just copy and paste it here.

Some new accounts are not really new, most of them are alt accounts. And some people have the wrong orientation about the forum, most of them are just joining the forum for the sake of making money, they think they can just come and rank up their account easily without making any serious contribution to the forum. Even if you join the forum for the sake of signature, then you should be prepared to learn, because if you are not ready to learn as a newbie, then you won’t be able to rank up.

Some of those so called common misconceptions are relevant while other are wrong I think. So it would have been better to rank them by their relevance and their dangerousness. For example the 'get-rich-quick' scheme should be at the first place. Because it's definitely the most common and most deceiving one of the forum and the cryptoverse IMO, and not only from beginners. People really think assets can take several dozens percents increase without any risks of falling down few days or weeks later. It's just because of a high volatility most of the times, actually.

I agree to this. Not all newbies are less knowledgeable, they may be new in the market but some have indeed deep understanding about crypto and the whole crypto space. So if they act as educating the other members in the forum, I guess there’s no wrong with if what they are teaching are relevant to other forum members.

Some higher rank members may underestimate the position of newbie. But to be honest, some newbies are highly knowledgeable than some legendary members, and it can be seen on their informative and highly relevant posts in the forum.

Newbies teaching instead of learning is a very big concern that the forum has started hissing about recently. I actually do not have problems about newbies teaching, if only they can teach well. It is not all newbies in this forum are absolute newbies in the cryptocurrency industry. Many of them have known about bitcoin and cryptocurrency at large, it is just that they located this forum lately.

The problem only arises when the said newbies start teaching the wrong things or confirming gross misconceptions to be the truth which will be obviously misleading.

Quote by Satoshi himself. The "Bitcoin is not a cryptocurrency" narrative is just produced by bitcoin laser-eyed maxis who have no idea what bitcoin is but they learn to repeat some expressions that they hear because they sound fancy.

We are bitcoiners too, but we have to keep our eyes open and distinguish the truth from the lies.

I disagree.  They can be categorized together generally as Cryptocurrencies even if other than Bitcoin most others are Shit Coins.

Why do we call a local very small scammy business a 'business' if Amazon exists?  They are both businesses, even though one of them is a disgrace.  I understand the hatred, but we can not lie to ourselves.  They are Cryptocurrencies whether we like it or not.

Bitcoin is unique and Bitcoin # Cryptocurrencies # Altcoins.

Many developers created their altcoins and said their altcoins are Bitcoin killers but after one or some years, there "Bitcoin killers" cryptocurrencies are dead.

Cryptocurrencies Historical Snapshots with many top altcoins in the past now are dead.

A warning that Bitcoin forks are not Bitcoin. They are altcoins but want to borrow Bitcoin as part of their names to attract investors.

How many Bitcoin forks are there?

And rightly so, because Bitcoin is the first cryptocurrency, the most appreciated and trusted; the one that is most widely adopted and accepted by individuals, businesses, institutions, and even countries; the one that is truly decentralized.

I guess some Bitcoin supporters started to dissociate Bitcoin from cryptocurrency during the time when the crypto market has grown big and wide and already includes all kinds of centralized shitcoins that are actually a disgrace to the technology. They probably don't want to call Bitcoin crypto because Boobcoin and Beibercoin are also crypto. Surely, they can't be categorized together. That would be an insult to Bitcoin.

But Bitcoin is the genuine and original crypto. The rest should be the ones to be called with a different name.

And still they wonder why newbies are “criticized” or “attacked” by older members. Acts like these only creates suspicion as to whether the person is actually a newbie or an alt. I’d argue that this user is not new to the forum, some may hide under the umbrella of “new to bitcointalk but not new to bitcoin” but we all know these topics are created for merits.

Bitcoin is a virtual currency secured by cryptography and follows a peer to peer transaction that makes it highly different from a fiat, hence bitcoin is a cryptocurrency. So when others prefer to say cryptocurrency rather than bitcoin, or vice versa, I think that is reasonable enough most especially that bitcoin is the king of cryptocurrency. Altcoins are considered cryptocurrencies, as well as bitcoin and shitcoins in the market that never have a long term value in the market.

Some newbies to the forum do not consider themselves as total newbies, there is sometimes the believe that the knowledge they have before joining this forum is enough to introduce something new to members of the forum. Then also, some newbies are not really newbies, they know about bitcoins but are just new to the forum. What irritates members of the forum is when a clear newbie is trying to act very crypto educated.

Whenever and wherever cryptocurrencies are mentioned and talked about, the first thing that comes to mind is Bitcoin.

Many people have this misconception that Bitcoin I not connected to the global economy and this is not the case. Economic policies in mainly the US such as interest rates and regulatory policies affect the performance of Bitcoin and other cryptos. We also saw how the war in Ukraine affected the global economy which also had a ripple effect on the Bitcoin market. Bitcoin can also defy global economic predictions or situations like we saw during the COVID-19 pandemic when the currency rose even when the global economy was in shambles.


There are no restrictions placed on newbies from creating threads or contributing to the forum. You don't also expect others to follow your path of keeping silent. Some newbies might be new in Bitcointalk but they have more experience in the crypto space than most of us. You might not find the thread helpful but it might be beneficial to someone else. Newbies should be corrected and not criticized because they need support and assistance.

For me, Bitcoin is currently the most well-known cryptocurrency, given its growing ecosystem. With the rise of crypto, especially its increasing popularity, it is no longer isolated from traditional market influences, especially regulatory shifts.

Correct, they should stop using Bitcoin as a "get rich quick" scheme because they also need to be aware of the risks involved. Managing expectations and understanding that crypto investments entail uncertainties can prevent disappointment in the long run.

As for tech wizards, no matter how user-friendly or accessible the interfaces of these platforms are, if they lack knowledge of the basic concepts of blockchain and cryptocurrency and fail to understand the processes, it won't make a difference.

In my understanding, in some other countries, taxes are imposed on crypto assets, but if that happens in our country, I won't declare mine. The tax contributions I make to traditional transactions are sufficient.

My opinion is that Bitcoin is cryptocurrency. It is a cryptocurrency. It uses cryptography and it is a currency. This is probably the reason why Satoshi didn't find anything wrong with calling Bitcoin cryptocurrency. As a matter of fact, Satoshi encourages the use of the term cryptocurrency to refer to Bitcoin.

However, while Bitcoin is cryptocurrency, cryptocurrency is definitely not Bitcoin. It's like a bird and a crow. A crow is a bird but a bird isn't necessarily a crow.

Bitcoin is itself both an open-source P2P money and a digital currency.

   There are a lot of common misconceptions about Bitcoin,those criticizing says Bitcoin is used in illegal activities, do not work as a currency, it's votality and consumes more energy.

   People say's all cryptocurrencies are the same with high returns, blockchain is safe and secure and that all stable coins are supported by US dollars also that Bitcoin has no intrinsic value , Bitcoin can't be hacked by physical asset like Gold.
   Blockchain cryptocurrency and digital asset are the same ,gains or investment are tax free,and buying Bitcoin is based on guess investment looking for big gains.  Bitcoin is made to make payments without base on traditional ways

I understand but I also do not.

I realize there is a difference between Bitcoin and Doge.  But I also think they are similar enough to be considered both part of the same category of digital Currencies, known as Crypto Currencies.

At that point we can also start saying Monero and Bitcoin are not Cryptocurrencies which I really believe is not true.  Metals do have differentiating properties.  Some of them are more useless than others for specific use cases.  It does not make two distinct metals non metals though just because one of them provides better transfer speed of electricity.

Altcoins have started from Bitcoin.  Doge lets me transfer from one Wallet to another with no need for an Exchange account.  Monero provides me more Privacy than Bitcoin.  Is Monero then more Bitcoin than Bitcoin because it is Open Source and offers even more Privacy?

In this attempt of aggressively separating Bitcoin and the rest of the Cryptocurrencies I think a huge unhealthy confusion is created.  It is weird to read the way you classify Bitcoin versus Crypto.  Bitcoin is Open Source money and Crypto is digital Currency?  Money is Currency.  Bitcoin is digital.  So Bitcoin is Open Source digital Currency and Crypto is Digital Currency but they are different?  It makes no sense.

Makes more sense to separate them by saying Bitcoin is Decentralized while other Cryptocurrencies are not.  Bitcoin is Open Source while others are not.  But there are Coins which are Decentralized and Open Source too.  Like Monero.  What category do Bitcoin and Monero fall in?

Bitcoin = Open source P2P money
Crypto = digital currency

Crypto is not Bitcoin. You seem to include Bitcoin in Crypto, maybe because it's listed with many of the other shitcoin on various exchanges but that doesn't change the fact that Bitcoin is not Crypto. Bitcoin is (as said by the community) Open Source P2P money. You do not need exchange accounts to transfer Bitcoin from One account to another. The privacy you get is not provided by all the Cryptocurrencies.

Mate quite saying shit, just because you've got a full member account doesn't mean you know shit even tho it's a sign you've been here long enough, I hate seeing post like this, instead of saying this rubbish actually contribute if you claim to know than been a critic, he is a newbie doesn't mean he doesn't know anything, if there is something wrong with the post show seniority by correcting.


Next time I think it's better you use the word bitcoin and not cryptocurrency cause that is kind of general, unless you were referring to all the cryptocurrencies, to many of us old folks cryptocurrency is not bitcoin but bitcoin is cryptocurrency. If that makes any sense to you.

While some people may think that I'm saying Bitcoin= cryptocurrency, I'm actually talking about cryptocurrency but Bitcoin as the context. If that makes any sense.

The answer to this question, however, depends on where the investor lives - because in some countries, income tax does not have to be paid if certain conditions are met. In some EU countries, you do not have to pay tax in the case of selling cryptocurrencies if more than 1 or 2 years have passed since their purchase.

Also, if someone buys and sells cryptocurrencies in a way that leaves no paper trail, why would they pay taxes on something that their country doesn't even know exists? Don't get me wrong, I will pay taxes on what I can't avoid, but if someone lives in a country of high corruption and crime, I don't see why they would additionally finance corrupt politicians instead of enabling themselves a better life.

Welcome to the forum OP, I like your enthusiasm towards contributing to the forum. I would suggest you do proper research on a topic before posting so you don’t give wrong information. Also practice how to use the forum search engine so you don’t create topics that have been discussed before:
Bitcoin Myths

Sorry to say this, I don't really understand why newbies like to teach when they should be learning this is one big mistake I never did. instead of saying things and then it will turn out that I was very wrong I will rather remain silent and learn the basics before trying to contribute.

I suggest you should also consider that.
From your perception your absolutely correct with your led down misconception about Bitcoin and the cryptocurrencies (including shitcoins) at large but believe me as time goes on you will then to find out that you where wrong in some point. Although you're making good points too but for me I think it's not time to teach rather you should spend more of you time visiting the learnmeabitcoin.com website https://learnmeabitcoin.com/ to have background knowledge of Bitcoin including the technical related knowledge of Bitcoin.

In fact, according to Satoshi himself, the word cryptocurrency was good. You can see this email from Satoshi to Marti Malmi (Sirius) for further info. I haven't read all the conversation, so I apologize if they concluded that the word wasn't appropriate, but according to the email above, Satoshi said:

Look, you've done a misconceptions too.

Cryptocurrency ≠ Bitcoin

As a beginner , in the digital finance space, it's vital to navigate through the endless sea of information, in this context, telling myth from truth.
There are actually numerous myths when it comes to the Bitcoin space and how it works. Here, I'll try to debunk the most common ones.

• Crypto is not affected by Traditional market: while this misconception may be a popular opinion among beginners, truth is, regulatory shifts and market sentiments can greatly influence the crypto market.

•Crypto (Bitcoin) is a 'get-rich-quick' scheme: Beginners are usually found in this school of thought. Most people think this to be true because of the results displayed by the professionals in the Bitcoin space. The increase in crypto asset prices have contributed to this fictional belief. Take note, there are risks involved, like any market.

• Crypto is for Tech wizards: As many beginners are likely to think this, it is not true. With platforms releasing better user friendly interfaces, it's become more accessible and even beginners like you can navigate the world of digital finance with ease.

• Crypto Gains are not Taxed: This is one misconception that if not addressed early can lead to disappointments later on. Fact is, they are subject to taxation in most jurisdictions. They are just like stock gains .

•Crypto doesn't have any reald world uses: Actually, they do. Other than existing as digital assets, their real world applications include payment of goods and services, like traditional currencies, and enhancement of supply chain transparency.
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Conclusion.
Personally, I think telling truth from myth, fact from fiction is a great way to enter the digital asset space. You can make the best of your efforts. It may seem like I'm saying pretty basic stuff, but I think that's the point of relating to the beginners.
I'll post more myths later on.
Good luck!