I have seen a lot of myths and misconceptions that are being repeated again and again on the forum, so I decided to start this topic to debunk and change some of the most entrenched myths and beliefs regarding Bitcoin which have nothing to do with reality
1. Bitcoin is not recognized in the world, its use is illegal in most countries
In fact, Bitcoin is legal and accepted in some form in all countries where it might matter for its future adoption and prosperity. In the US Bitcoin had been classified as a convertible decentralized virtual currency as back as in 2013, and as a commodity for regulating Bitcoin derivative markets. In the EU Bitcoin is officially considered to be a means of payment, i.e. money. In China, bitcoin is fully legal for personal use and possession even though banks and financial institutions are prohibited from using it. The legal status of Bitcoin in Russia is not yet fully defined, but the local authorities now tend to consider Bitcoin as a foreign currency, despite their former threats of criminalizing its use and possession
2. Bitcoin cannot exist without fiat, especially the US dollar
Bitcoin was conceived as a currency, and as such it could facilitate the exchange of goods and consumption of services directly, without any other currency. Money doesn't need other money to function. Saying that Bitcoin couldn't exist without fiat is equal to saying that weight wouldn't exist without scales, which basically comes down to claiming that Bitcoin is not real money (see below). Regarding the US dollar specifically, the total majority of trades involve exchange of Bitcoin and the Chinese Yuan, therefore even if Bitcoin somehow depended on fiat, that most certainly wouldn't be the American dollar
3. Bitcoin is not money altogether since it is not used as a means of exchange
This myth is based on the claim that people don't get paid in bitcoins and don't pay bitcoins to others. The existence of signature campaigns on this very forum outright refutes that. Campaign participants are paid in bitcoins for posting here while campaign owners pay bitcoins for advertising they receive. As simple as it gets. On the other hand, the majority of currencies existing across the world can't be considered as money either if this claim is followed to its logical conclusion. Because any smaller currency can be exchanged directly only for a short list of goods produced domestically while imported goods are paid either in the currency of the country of origin or in dollars, and the national currency thus gets pegged to that currency
4. Bitcoin is hard to regulate and taxing it will be next to impossible
The primary cause for this myth is an implicit assumption that tax agencies and services will be going after every bitcoiner, thereby making it prohibitively expensive to tax Bitcoin. While it is certainly true that it wouldn't be an easy task, it is not how the tax system generally works. It is assumed that every law-abiding citizen should calculate and pay taxes all by himself. If Bitcoin is made taxable, it will be your obligation to pay the tax. Deliberately avoiding such a tax would basically make you into a criminal since tax evasion is considered a criminal offense in many jurisdictions, and you will have to live with that
5. Bitcoin is totally useless in everyday life
This myth might have had some substance a few years ago, but with the massive expansion of Bitcoin payment cards over the last two years (at the very least), it is no longer true. Many web wallets such as Coinbase or Xapo and exchanges like CoinsBank started to issue Bitcoin payment cards which you can use as a typical credit or debit card. Such a card is linked to a user's Bitcoin account, and when he pays with it, the wallet makes all necessary conversions which are totally transparent to the user. These cards allow virtually everything that you would expect from a bank card, for example, paying for goods and services, withdrawing fiat, etc. So owning Bitcoin doesn't any longer mean that you can’t shop conveniently
Will add more myths later, and I don't mind if this topic gets stickied eventually
