Myth #1:
Bitcoin isn’t environmentally friendly and contributes to climate change
One of the big criticisms of Bitcoin is that it contributes to climate change and isn’t environmentally friendly. This is often a criticism of the process of mining itself which requires many computers to be powered. However, over half of the world’s mining takes place in Sichuan, China, where the majority of these farms are fueled by sustainable energy sources. By using sustainable energy sources as Mawson does, cryptocurrency can be surprisingly friendly to the environment and not negatively affect the climate.
Myth #2:
Bitcoin uses too much energy and isn’t worth the cost
There’s no arguing that Bitcoin does consume a lot of energy, but to say that it’s not worth the cost is rather uneducated. Bitcoin miners use a lot of renewable energy these days and the value it provides as a financial system is often immeasurable. If Bitcoin was so easy to mine, then companies would be more willing to use inefficient methods that would be even more harmful to the environment while providing little value to the world as a cryptocurrency.
Myth #3:
Bitcoin isn’t as efficient as traditional financial systems and is a waste of time
Many of the myths surrounding Bitcoin’s value in the financial world stem from a lack of understanding of how Bitcoin works. People make wild claims about Bitcoin, such as it needing so much energy that it could blow up the planet. These wild claims are simply not true and are often caused by a lack of understanding of how the system works. The energy cost of Bitcoin comes from mining blocks on the blockchain and not from transactions, meaning there is no effect on its efficiency as a financial system.
Myth #4:
Bitcoin and cryptocurrency mining are not sustainable
Contrary to popular belief, Bitcoin mining is about efficiency and sustainability. Major stakeholders in cryptocurrency are incentivizing sustainable sourcing of energy, and there are goals to reach 100% sustainable cryptocurrency mining by the year 2025. There are also initiatives that promote the use of clean energy when mining Bitcoin and miners are looking for more ways to turn their farms into much more efficient systems.
Myth #5:
Bitcoin itself is dying out and meme coins will take over
It’s common for people to speak about Bitcoin in a negative light and instead, focus on promoting other coins such as Ethereum and Cardano. However, many people have started to place their bets on “meme” coins such as Dogecoin due to their ability to surge in price when mentioned by influencers in the space. However, Bitcoin isn’t going anywhere. It still offers anonymity and serves its function well, making its value far higher than any other cryptocurrency in the world–and that’s unlikely to change anytime soon.
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Before beginning your investment journey, it’s important to make sure that you are in a suitable financial position. Investment always comes with risks, so it’s vital to assess your finances before deciding how to invest your money. First, ensure you have an emergency fund and sufficient savings to provide you with financial security. It’s important to have money that you don’t invest so that you are able to access it when you need it most.
In addition to ensuring you have savings, be sure to pay off any high-interest debt. Having debts doesn’t have to prevent you from investing, especially when you might have debts such as a mortgage that will benefit you in the long term. However, if you have debts with interest payments that are higher than what you could earn through investing, focus on paying your debts off first.
