Happy birthday bitcoin

Bitcoin Myths Busted: Setting the Record Straight

Bitcoin. the (in)famous topic of passionate debates and wild rumors ever since its inception. You’ve probably heard things like “Bitcoin is too volatile” or “It’s just a haven for criminals.” But these common criticisms are often based on outdated myths and misconceptions. Today, the day of the bitcoin birthday, we’ll dive deep into some of the most obnoxious myths concerning this technology.

Myth #1: “Bitcoin Consumes Too Much Energy”

Yes, Bitcoin’s energy usage has sparked controversy, but here’s the thing: its energy consumption isn’t “waste”—it’s a feature.(lol) Unlike traditional financial systems with endless branches, data centers, third-party infrastructures, people -those waste the most resources-, Bitcoin’s proof-of-work mechanism is what keeps the network decentralized and secure.

Consider this: the energy wasted in the traditional banking system doesn’t even guarantee basic security against tampering, corruption, or human error. Meanwhile, Bitcoin’s decentralized p2p network provides virtually unbreakable security, with features like censorship resistance that have been battle-tested in real-world scenarios—such as when WikiLeaks was debanked and turned to Bitcoin for donations.

The ABSOLUTE MATHEMATICAL CERTAINTY of legitimate, tamper-proof data that no third party controls is incredibly valuable in today’s financial landscape, where companies spend billions on data security to prevent breaches. In this context, Bitcoin’s energy consumption is a bargain, offering a level of security and trust that traditional systems fail to deliver and will never be able to deliver unless they embrace this technology.

According to Galaxy Digital, Bitcoin’s annual energy consumption is around 114 TWh, while the banking system uses about 263 TWh annually. Bitcoin is far more efficient when considering its role as a global, secure settlement layer. Additionally, up to 39% of Bitcoin mining is powered by renewable energy, which incentivizes miners to seek out low-cost, sustainable energy sources. In fact, the financial incentives for Bitcoin miners pushes the technological advancement of renewable energy solutions even further.

Myth #2: “Bitcoin Is Used Primarily for Illegal Activity”

Bitcoin’s pseudonymity, which means that you are anonymous unless one of your informations (such as a wallet address tied to you) gets leaked, makes it appear suspicious, reality is that its transparent, public ledger makes it less useful for criminals than cash. In fact, over 90% of illegal money laundering still relies on traditional banking systems and cash, primarily in USD and EUR. Bitcoin’s share of illegal transactions? Just 0.15% of all blockchain transactions in 2021, according to a report by Chainalysis. You hardly see any complaints about the banking system nor anyone calling for oversight/ban.

The transparency of Bitcoin’s blockchain actually makes it easier to track illicit transactions. With the blockchain, every transaction is logged publicly, and agencies like the FBI have become skilled at tracing Bitcoin used in illegal activities. So, Bitcoin isn’t the “criminal currency” it’s often made out to be—cash is king and will always be.

Myth #3: “Bitcoin Is Too Volatile”

Volatility is often cited as a flaw of Bitcoin, but consider this: 1 Bitcoin will always equal 1 Bitcoin. The concept of “1 BTC = 1 BTC” shifts the conversation from price to purchasing power. Volatility exists largely because we’re measuring Bitcoin in dollars, euros, or other fiat currencies that inherently lose value over time. You must have read on X or watched somethingv on tiktok about inflation right? :)

To give some perspective, the dollar has lost around 86% of its value over the last century due to inflation, while the purchasing power of a single Bitcoin has increased dramatically. For example, Bitcoin has surged in value from roughly $100 in 2013 to thousands of dollars now. While fiat currencies decline in purchasing power, Bitcoin’s limited supply (only 21 million BTC will ever exist) provides a natural scarcity that protects against devaluation. Yes, Bitcoin’s value in fiat fluctuates due to market speculation and growth pains, but the long-term trend remains positive as adoption grows. as of today, 99.99% of ALL WALLETS THAT EVER BOUGHT BTC ARE IN PROFIT.

Myth #4: “Bitcoin Is Used for Scams”

It’s true that some scams involve Bitcoin, but every major technological shift has been used for scams early on—from email to the internet itself. And yet, we don’t think of email as inherently “scammy” today. Bitcoin is being adopted at a faster rate than both the internet and television were at similar stages, showing that it’s not going away anytime soon.

The vast majority of Bitcoin users and transactions are legitimate, with people using it as a hedge against inflation, a remittance tool, or a store of value. Like any technology, education and improved security practices will reduce the number of scams over time, but Bitcoin itself isn’t inherently risky—just misunderstood.

Bitcoin Isn’t the Problem; It’s the Solution

The future of money(cringe) is moving toward a decentralized, secure model, and Bitcoin is leading the way. From its energy efficiency to its transparency and scarcity, Bitcoin is solving issues that fiat currencies and traditional finance are designed to never solve, rather they leverage those flaws.

Today, the day of its birth, do yourself a favor and read the BTC paper.