Bitcoin Myths and Facts

10 Pages Posted: 16 Aug 2014 Last revised: 20 Nov 2017

See all articles by Campbell R. Harvey

Campbell R. Harvey

Duke University - Fuqua School of Business; National Bureau of Economic Research (NBER)

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

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

Harvey, Campbell R., Bitcoin Myths and Facts (August 18, 2014). Available at SSRN: or

Campbell R. Harvey (Contact Author)

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7768 (Phone)


National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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