Bitcoin Myths and Facts
10 Pages Posted: 16 Aug 2014 Last revised: 20 Nov 2017
Date Written: August 18, 2014
I will address eight common claims about bitcoin: 1. Physical bitcoins exist; 2. The founder of bitcoin is a person called Satoshi Nakamoto; 3. Bitcoin is mainly used for criminal activity; 4. A lack of security plagues bitcoin; 5. Mining is a waste of energy; 6. Bitcoin too small today to be an important economic force; 7. Bitcoin is currently too volatile to be viable; 8. Bitcoin is just another currency.
For additional details beyond "Bitcoin Myths and Facts," I have another paper/slidedeck called "Cryptofinance" that goes deeper into the mechanics of cryptocurrencies. It is available at http://ssrn.com/abstract=2438299.
Keywords: Cryptofinance, Bitcoin, Bubbles, Block chain, Blockchain, Cryptography, Mining, Wallet, BTC, Satoshi Nakamoto, Mt. Gox, Silk Road
JEL Classification: A10, C00, D00, E00, F00, G00, H00, I00, J00, K00, L00, M00, N00, O1, P00, Q00, R00, Z00
Suggested Citation: Suggested Citation