Bitcoin has dominated the headlines in recent years, but the market is rife with myths and misinformation. If you’re interested in entering the market and accepting bitcoin transactions in your organization, it is important to separate myth from fact.
Myth: The Bitcoin Market Is Too Expensive
At the time of this writing, 1 Bitcoin is priced at $6,745.58. At first blush, this makes it seem like bitcoin is out of reach for the average Joe or Jane. However, it is possible to buy fractions of a bitcoin. A single bitcoin is made up of 100 million satoshis. People looking to enter the bitcoin market can do so with far less money than the hype would suggest.
Myth: Bitcoin Is Too Volatile to Be Worthwhile
It is true that bitcoin is in fact, a speculative investment which means volatility comes with the market. However, it is important to remember bitcoin is a new currency that is not backed by or propped up by central banks. If the market were stable, it would actually be more concerning. The bitcoin market is expected to even out over time as it becomes more comparable to gold and fiat currencies. However, as with any investment, you never want to put all your eggs into one basket.
Myth: 40 Percent of All Bitcoins Are Controlled by 1,000 People
The truth is, we don’t actually know how many people own bitcoin around the world. The only thing that is known is that there are currently 24 million bitcoin wallets in use today. One person could own one wallet, or own hundreds of wallets. Due to the fact most wallets create a new address for every transaction, there is no way to tell for sure who owns how much bitcoin.
Myth: Bitcoin Transactions Are Slow and Costly
Traditional payment systems are instantaneous, and bitcoin transactions are a bit slower, maxing out at about 1.7 million per day. However, bitcoin transactions are designed to be more secure thanks to blockchain, and therefore those transactions experience a slightly longer delay. However, technology is improving nearly every day, and the Lightning Network is poised to speed up the process of bitcoin transactions.
There are fees associated with bitcoin transactions, but those fees are designed to prevent fraud and spam. Without fees, attackers could send millions of minuscule transactions into the network, jamming up the system. Paying to transact bitcoin disincentivizes such attacks.
Are You Ready for Bitcoin?
The only way for businesses to take effective advantage of bitcoin and its associated technologies is to have the right team in place. Navigating the world of cryptocurrencies and blockchain requires skills and an in-depth knowledge of the market. If you are looking for top tech talent who can help drive your organization into the future, contact the tech recruiting experts at Talon today.