Bitcoin Safety Myths Debunked

July 9, 2019, by Maayan
Table of Contents Safety Myth #1: Only Criminals Use Bitcoin – BUSTEDSafety Myth #2: Governments Can Ban Bitcoin – BUSTEDSafety Myth #3: Bitcoin Is Anonymous – BUSTEDSafety Myth #4: Bitcoin Can Easily Be Stolen – BUSTEDSafety Myth #5: Bitcoin Consumes
A man holding a Bitcoin into his hand.

If you’re using Bitcoin, you’ve probably been exposed to scare tactics: critics may have warned you that Bitcoin is illegal, dangerous, or simply risky in a number of ways. None of these things are true: Bitcoin is just as safe as any other monetary system. Here are some of the biggest myths about Bitcoin safety, and why you shouldn’t worry about them.

Safety Myth #1: Only Criminals Use Bitcoin – BUSTED

In the early days of crypto, Bitcoin was largely used for criminal activity. However, now that Bitcoin has been adopted in mainstream commerce, Bitcoin’s association with crime is fading fast. Last year, a report from a member of the U.S. Drug Enforcement Administration found that just 10% of all Bitcoin transactions are involved in illegal activity―a complete reversal from 2013, when 90% of transactions were related to crime.

Safety Myth #2: Governments Can Ban Bitcoin – BUSTED

Often, the media reports that governments around the world are banning Bitcoin. These reports are extremely misleading: typically, those countries are restricting financial institutions and businesses from trading Bitcoin. Government bans have no capacity to shut down Bitcoin itself, as Bitcoin runs on a decentralized network. This means that individuals will always be able to circulate Bitcoin freely.

Safety Myth #3: Bitcoin Is Anonymous – BUSTED

If BTC were completely anonymous, it would be heaven for illicit activities. But no, Bitcoin isn’t entirely anonymous: if you are using a Bitcoin exchange like Jubiter, you will typically need to identify yourself due to KYC regulations that keep you safe. However, all trustworthy exchanges will keep your personal data private. You can rest assured that your personal data will not be shared with other users: most exchanges will never provide your personal data unless a government authority demands it.

Safety Myth #4: Bitcoin Can Easily Be Stolen – BUSTED

Bitcoin can be stolen, and accounts can be hacked, but this is true of any type of money and online account. Fortunately, there are plenty of ways to make it very difficult for hackers to steal your Bitcoin. By using an exchange like Jubiter, you’ll benefit from security features such as cold storage and two-factor authentication (or 2FA)―both of which make it very unlikely that you will ever fall victim to theft.

Safety Myth #5: Bitcoin Consumes a Lot of Power – TRUE BUT MISUNDERSTOOD

You may have heard stories about Bitcoin users who were surprised by extremely high electricity bills after they began to mine Bitcoin. However, these stories only concern miners, who are using power-hungry devices to generate new Bitcoin. If you are simply buying, selling, or spending Bitcoin, your computer or phone will not use any extra electricityand you won’t notice a difference in your electricity bill or battery life.

The Takeaway

Bitcoin can be extremely secure. As long as you take the precautions that you would normally take online, it is unlikely that anything will go wrong. Bitcoin has fully discredited the myths that have been circulating about it for the past several years, and it is now recognized as a safe cryptocurrency that everyone can use―there is no need to be afraid of it.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.