Topic: Crypto for beginners: Don't believe these four myths when learning about crypto (Read 219 times)

first of all if you believe in bitcoin and cryptocurrency you should not hesitate although you still need #DYOR when your start investing and second of all is the article like that always coming up.

the famous guy like Jeff Bezos don't believe in crypto thing, but the other said it that bitcoin is revolutionary and blockchain technology is a good thing.

and third people above me is right in my opinion.

Crypto has many uses. Different cryptocurrencies are designed for different purposes. So let's just use Bitcoin instead. Bitcoin isn't there to replace fiat. It is there to serve as an alternative.


Again, Bitcoin instead of crypto. If we talk of crypto, then this might not be a myth at all as there are many altcoins out there which are apparently just for speculation. For Bitcoin, it isn't. It is there to serve as a peer-to-peer electronic currency.


Crypto could be a scam. There are thousands of altcoins that are scam. Bitcoin obviously isn't. You cannot consider Bitcoin a Ponzi scheme primarily because it has its radical features, because of which people buy and use it. They're not buying and using Bitcoin for the sake of Bitcoin.


Bitcoin is mathematics. It uses computational powers. It uses energy to create massive amount of computations. How can we say it doesn't have intrinsic value? It's energy stored.

Bitcoin has an intrinsic value, but it doesn't have coverage, and that is a common reason why many investors fear investing on it. When people talk about that I think they are more concerned about the fact bitcoin is too expensive on the market when compared to its intrinsic value, so it discourages these people to invest on the cryptocurrency, because there are serious risks they can lose their money this way.

Ok let's clarify:

1 ​​Bitcoin is already among us and will surely replace the Fiat, when?  I don't know exactly but some world economies have already adopted this financial stop as legal currency, so it won't be long before others will do the same.

2 Speculation is only a part of Bitcoin, someone in the past years has used this to raise the price of some shitcoins but as you can see they didn't go well.  Bitcoin is the only alternative and is not an asset to speculate.

3 Ponzi schemes are characteristics of shitcoins so don't worry about that.  Choose Bitcoins.

4 The intrinsic value is given by the proof of work.  To create a new Bitcoin issue, miners have energy costs that translate into new currency, this is the value at the basis of the exchange.  Fiat money, on the other hand, is printed too easily and creates inflation on the contrary.

Basing on real life situation and experience where i had encountered these type of people which you would really be saying that they are trying out to force themselves to believe with those nonsense.
Later on on the time that they had gained up that sufficient knowledge and awareness then this is where they do try to approach to me once again and trying out to ask out for more details
on what are the things that ive been doing or dealing with which i do able to make huge profits or making my lifestyle more better compared than before as they could see.
This is the time i do ignore and reject and just tell them about learning all the basics.

I’ll briefly chip in on your first and third myth.
Your first myth is about bitcoin trying to replacing fiat: I heard this also when I ventured into cryptocurrencies but I didn’t for a second believe it. I’m my opinion, bitcoin cannot totally replace the fiat system. I think of bitcoin as an alternative means of payment and not intended to take fiat’s place.

Crypto is one big scam and Ponzi scheme: I think everyone on here must have heard about this one. This is an old and presently an ongoing propaganda being told to all who would care to listen. Mostly being propagated by naysayers, ignorant folks who know nothing and are not willing to learn a thing about bitcoin.
It’s up to us to continue to debunk these false and misleading claims about bitcoin no matter how fruitless sometimes it may seem.

Many people does not differentiate bitcoin with money because that does not know the value of bitcoin so from my own understanding I believe that the Bitcoin is like money and since money can buy anything bitcoin can buy anything also so therefore I value bitcoin the way I value the money aside the world because both of them are same thing

Everything that you have said OP is usually what people had to think about Bitcoin. Their first impressions are truly negative until the moment they have tried it and found out that they are wrong.
 - a scam, no value, worthless

I ask one of my friends about Bitcoin and he is telling me to stay away from this because it was blahhh, blaahhh...totally negative.
I understand that my friend needs some education and so a lot of people needed this otherwise, they keep thinking negative.

op @franky1 really said it all.
But before believing in any news have you find time to study more details about bitcoin, i understand if you deeply devote time to read the real concept of bitcoin i don't think you could likely have a listening ear to any kind of news or even being bothered about anyone speculating about price. Yes i understand most of the news are sponsored news in other to scare away investors and benefits whales. however have it in mind that bitcoin is alternative form of money which can be used as a means of transactions, to buy, sell and do whatever just as fiat is but will not replace fiat definitely you need both. Bitcoin is not a ponzi scheme or a quick get rich scheme.

Myth 1: Crypto is trying to replace fiat money

Crypto or Bitcoin for that matter, is not trying to replace fiat. Rather than replacing it, Bitcoin is an amazing alternative to the current fiat financial system. It knows no boundaries and no flags, so it's an alternative system that is just a different option for those who do not want to use fiat


Myth 2: Crypto is just for speculation

Fiat is also made of speculation. Any asset that has a lot of offer and demand can be used for speculation, so in that sense Fiat and cryptos are much alike


Myth 3: Crypto is one big scam and ponzi scheme

Fiat is the biggest fraud and the biggest Ponzi ever created but everyone trusts it... so why do we are constantly pledged by inflation??


Myth #4: Crypto has no intrinsic value

Of course Bitcoin has intrinsic value. Saying that it doesn't it is the biggest fallacy you can hear. As long as it can be used as a means of exchange it has an intrinsic value. Anything that has utility also has intrinsic value

I don't believe in such a time, fiat money will always be needed and used, do not think that BTC was created to replace fiat currencies, BTC is an alternative currency to fiat and not its replacement. Most transactions in real life are now done through cashless transfer of fiat currencies, all means the same thing, the currency used in the transfer is still fiat.
It is simple, what the article meant is that BTC isn't used by too many people as a currency that it is, but for speculation with the price in order to make return on investment. BTC is volatile, and even though it is useful as a currency, many people do not want to spend it that way, they want to hold it so its price can increase and they then convert it to fiat and make more money.
Most cryptocurrencies are scam and ponzi scheme, or pump and dump cryptos, that is correct, there are so many cryptocurrencies and how many of them do you think have any value or utility. BTC is different from all these other cryptocurrencies because of its usefulness and security, it is neither a scam or ponzi, but the most of the other lot that make up the many cryptos in the network are mostly scams.

This is an interesting approach to some criticisms regarding bitcoin's intrinsic value and purpose. Most outsiders see bitcoin as a long-running massive pyramid scheme where no one sits at the top sadly. The fact of the matter is that it cannot be any farther from the truth as bitcoin's mostly pegged to the dollar and other strong currencies in spirits. The statement regarding the dichotomy between bitcoin and fiat supposing that the former is of no intrinsic value is just stupid to say the least. It has stood the tests of time, more over have made a lot of people even beginning traders profit greatly. If bitcoin doesn't have any value, then so will the fiat currencies that it supports. All in all apart from a couple of creative stretches you've made to make the list sound, I would agree with it.

I think the quotation is right because even investments with fiat are equally liable to "risk" as that of the crypto counterpart. If an investor invests in real estate having used the Fiat currency for such investment, he has a projected gain to make in years to come but this projection is no more than an assumption because there are external and internal factors which can affect his investment; reducing or increasing the projected gains. The analogy therefore is same with cryptocurrency (Bitcoin) investment. Andrew Bailey has been skeptical about Bitcoin.


I don't agree with you on this one, as there are some cryptocurrency projects that can be classified as Ponzi. Therefore I don't see that assumption laughable. It could've been a lot better if you were more precised and particular with mention of "Bitcoin".

this is not some science whitepaper forum where papers are being handed in to a professor/reviewer where they earn some real world degree over..
... its an informal its a discussion forum.
so relax a bit

many dont care about plagiarism because many are not giving any real credit to people that write messages(as if they are the true creator of anything of monetary value) ..
they are sometimes awarded valueless merit for raising an interesting topic that made other people think/learn something

after all. when you learned the A,B,Cs at kid school do you now cite your teacher as your source of your words. or do you just talk using those words

its just a discussion not something that needs to be fought in courts over..

yea it would be nice to have them include a reference so that the context of their topics makes sense. but apart from that screaming out plagiarism as if its criminal on this forum to discuss. is a stretch.
free speech does not mean you need to include citations

try to call out on posts where the topic blindly copies and pastes extracts, but where the post maker categorically says its their own work, trying to claim credit as if its their own mind that came to the post content.

apart from that chill out a bit, enjoy the discussion more. try to use your time on scammers and liars

The user did multiple plagiarisms and were reported. He will be banned soon.

Maybe he don't care about what we replied in his topics too.

https://bitcointalksearch.org/topic/m.61395295
https://bitcointalksearch.org/topic/m.61346206

1. bitcoin is not to replace fiat but give an open second choice to hedge against fiat

2. bitcoin has a underlying amount thats sits below the non-zero bottom of the market which is where the VALUE amount is
the speculative markets sits ontop of this VALUE and shows the speculative PREMIUM

value was 2017 under $900 (market premium swings 900-20k)
value is 2022 under $16k (market premium swings 16-70k)

3. ponzis lock people in and only pay out a dividend/interest rate where new investors fund the interest/dividend but users cannot escape with ful value investment..
bitcoin allows people to trade openly and in full. there is no dividend/interest. just trading between users in multiple decentralised and centralised ways where there is no single "sucker" locked receptical

4. bitcoin is not TANGEABLE(physical able to hold in hand) but it does have intrinsic value.
as hinted in point 2:
the lowest price anyone on the planet can acquire bitcoin for where every seller refuses to sell for less and every efficient miner refuses to sell for becomes the underlying value amount.
this value number is actually based on physical cost of the most efficient miners(lowest on planet acquisition cost discovery).. meaning real hardware and real electric costs supporting the underlying value number it also has function and utility which ads to the values(sentiments) which drive demand above the value in of itself which is real, as just described

I saw this article on a different site, the guy did drop some really interesting points some were a little hard for me to understand though so I decided to bring it to this forum. A link to the article will be provided at the end of this thread.

Myth 1: Crypto is trying to replace fiat money:

Personally I don't see this as a myth, crypto isn't trying to replace fiat money  there's a high chance it will. For those that don't know, fiat money are national currencies that are controlled by the government and backed up by a commodity like gold. In other words, fiat money are just physical currencies. I feel there will come a time where fiat money won't be needed it's just 2022 and the need for fiat money have already began to reduce, most transactions are now done through cashless transfers.

Myth 2: Crypto is just for speculation:

I didn't really understand this point. Is he talking about crypto being based on speculative investments? I'm hoping someone here would explain this better.

Myth 3: Crypto is one big scam and ponzi scheme:

Honestly I found this funny, do people still think crypto is scam? If it we were still in 2010 then no problem you're right to be skeptical about it. I don't think crypto can even be classified as a Ponzi scheme because, unlike most Ponzi schemes it doesn't depend on the number of new investors to maintain its Value. Yes they are alot of crypto related scams like; fake links especially on Facebook, fake crypto exchanges etc. The guy also mentioned some others in the article.

Myth #4: Crypto has no intrinsic value:

I'm actually very interested in this particular point. Is this a myth?, Does crypto actually have an intrinsic value. First of all Intrinsic value is the measure of an investment based on its cash flows. For crypto to have an intrinsic value doesn't it have to be backed by a commodity? ( E.g: Gold) like how most fiat currencies are.
I'll be quoting his last line here. "if you really think crypto doesn’t have any intrinsic value, then you’ll have to believe that fiat currencies don’t either.".

Like I said earlier, I'd love to here your opinion on this especially the last line.

https://mikewchan.medium.com/crypto-for-beginners-dont-believe-these-four-myths-when-learning-about-crypto-1a9e1aa0e936

That's the link to the article above.