Swallowing a piece of gum will make your insides stick together—this is probably one of the many ridiculous lies adults have told us when we were kids. The saddest part? We actually believed it. Unfortunately, our belief in these silly myths doesn’t just go away when we grow older, especially when we hear these tales in more complicated contexts like the expanding and intriguing markets of cryptocurrencies in India.
But here’s the good news: you can easily cut through the lies and get to the truth! If you’re planning to kick off your crypto journey and buy Bitcoin in India, here are eight common Bitcoin myths in the country that you need to know and debunk.
Myth #1: Bitcoin can be easily hacked
Contrary to popular belief, Bitcoin is nearly hack-proof. It uses a technology called the blockchain, which is so complex and powerful that every transaction that enters and gets confirmed on the network becomes nearly impossible to hack or reverse.
For a person to hack the network, they’d have to control more than half of Bitcoin’s network or 51% of BTC’s hash rate. And with Bitcoin’s very complicated and secure network, that’s extremely unlikely to happen.
Myth #2: Bitcoin is only used for illegal activities
This is probably one of the most common Bitcoin myths in and out of the crypto space. BTC has lots of unique features that you won’t find in any government-issued money. One of these features is BTC’s decentralization – it doesn’t need any government assistance to run its operations, unlike the Rupee which is operated and distributed by the Central Bank of India. This is why folks from different places and backgrounds – including cyber criminals – became very interested in it.
But that story was from a decade ago. If you still don’t know the story behind Bitcoin’s growing adoption in India in the past couple of years, you have a lot to catch up on. BTC’s notable features are being used in different industries for various purposes, such as remittances, everyday purchases, donations, payments, and a lot more—you might want to try them yourself!
Myth #3: Bitcoin isn’t legal in India
Different countries have varying views about Bitcoin. However, no law in India currently directly prohibits buying, selling, or mining this digital currency after the Reserve Bank of India (RBI) lifted the ban against crypto trading in 2020. So if you’re planning to trade crypto in the country, be sure to keep yourself updated and check the government’s stance on it.
Myth #4: You need to own a bank account to hold Bitcoin
If this myth was correct, then it would defeat Bitcoin’s purpose of reaching the unbanked. Thankfully, it’s just one of the top Bitcoin myths in India and different corners of the world. The truth about holding fractions of BTC is that you won’t need to go through the tedious process of submitting stacks of papers and documents required by financial institutions like banks.
All you have to do is get a reliable Bitcoin wallet online and enter the personal information needed to sign up. Most Bitcoin wallets can also be installed on smartphones, making them more accessible and convenient to use! Easy, right?
Myth #5: BTC transactions are anonymous and untraceable
Blockchain technology allows for more transparency by making every transaction viewable by users on the network. Simply put, users on the blockchain can see when someone sends BTC to another person. This traceability feature is the reason why major charitable organizations worldwide use it for donations.
While everyone knows when fractions of BTC are being sent from one user to another, no one can easily know the real identity of both parties since they use pseudonymous public keys. On the flip side, Bitcoin’s white paper reads:
Some linking is still unavoidable with multi-input transactions, which necessarily reveal that their inputs were owned by the same owner. The risk is that if the owner of a key is revealed, linking could reveal other transactions that belonged to the same owner.
So, is Bitcoin anonymous and untraceable? The answer would be a strong no.
Myth #6: You need thousands of rupees to buy BTC
While Bitcoin’s price is over 36,000 USD at the time of writing, you don’t need 26 lakh rupees to acquire amounts of it. Most importantly, you don’t need to buy 1 BTC to get started on your crypto adventure. You can buy fractions of BTC for as cheap as 10 USD – which is more or less 222 IND – on Bitcoin marketplaces like Paxful. Yup, getting started isn’t as expensive and hard as you think.
Myth #7: You can never safely buy and sell Bitcoin online
This myth can be a hard fact if you pick a Bitcoin marketplace that isn’t safe and secure. However, if you’re on a reputable platform, you can easily trade and sleep at night without worrying about getting your account hacked or compromised.
Peer-to-peer marketplaces like Paxful offer robust security features to protect your personal information, crypto funds, and peace of mind. It uses an escrow system, requires mandatory account verification, and supports two-factor authentication (2FA) for a safe and secure trading experience.
Myth #8: BTC is worthless
Some people argue that Bitcoin is worthless because no valuable commodity backs it. But a significant percentage of the world’s population was shaken when Bitcoin’s value skyrocketed to over 42,000 USD in the first week of the year, from its year-end price of more than 28,000 USD. The erratic rate of demand and supply greatly affects its value and volatility.
So, is BTC worthless? We’ll let you answer that!
Cut through dangerous myths and stick to the facts
Many people are still skeptical about BTC and the wonders it can do, so we can’t blame you if you happen to believe some—hopefully not all—of these lies, too! But in case you haven’t read about what Bitcoin is and how it works and other Bitcoin myths, do so now.
If you know someone who still hasn’t discovered these facts, be their myth-buster and don’t let these misconceptions rob the great opportunities that await them in the crypto world!