5 Bitcoin Misconceptions Exposed – Don’t Fall for These Lies
“Boomer Dad vs. TikTok Teen”
If I had a dollar for every time someone’s Dad said, “Bitcoin’s fake money, mate,” while their 15-year-old kid smirks and says, “Bro, you just don’t get it,” I’d have enough cash to shout the entire pub a round.
And there’s the problem, isn’t it?
People are either terrified of Bitcoin or they’re so obsessed they’ve started calling their pets “Satoshi.”
Misinformation is driving a wedge between generations, mates at the pub, and even within families.
But don’t worry—I’m here to play referee and clear up the confusion.
Whether you’re 18 or 80, you’ll leave understanding what’s fact, what’s myth, and how to have the upper hand next time Bitcoin comes up at dinner.
No waffle, no tech speak—just a clear, cheeky breakdown of the biggest Bitcoin misconceptions. Let’s go, legends.
Picture this: you’re at your mate’s backyard barbie (BBQ), snagging a perfectly charred sausage when someone (let’s call him Barry) starts spouting Bitcoin rubbish.
“It’s fake money, mate. Criminals use it. Didn’t it already crash like ten times?”
Cue nods from half the group and that smug look from Barry—the bloke still using cheques.
Now, I get it.
Bitcoin’s been around since 2009, yet it still feels like some secret society for tech nerds and Elon Musk fanboys.
But the truth?
There are more myths about Bitcoin than there are blokes claiming they could’ve gone pro at footy.
Whether you’re a curious newbie, a boomer wondering what your grandkids keep harping on about, or someone convinced Bitcoin’s a Ponzi scheme run by lizard people—I’ve got you covered.
Let’s bust some Bitcoin myths and help you make sense of this digital revolution, no tech degree required.
1. Myth: Bitcoin is Just Used for Dodgy Stuff
Alright, let’s address the elephant in the room.
Is Bitcoin used for criminal activity? Sure—just like cash, cars, and burner phones.
Back in Bitcoin’s early days, it was popular on dodgy websites like the infamous Silk Road, where you could buy anything from fake IDs to… well, let’s not go there.
But here’s the kicker: according to blockchain data firm Chainalysis, illegal transactions make up less than 1% of all Bitcoin activity today.
Compare that to cash.
You don’t see people avoiding the $20 note just because Barry used one to dodge a parking fine, do you?
Example: Transparency is Key
Bitcoin runs on blockchain technology—a public ledger where every single transaction is recorded, anyone can view the ledger and all transactions online.
It’s like having a bank statement you can never erase. Criminals have cottoned onto this and realised Bitcoin isn’t great for flying under the radar.
Takeaway: Bitcoin isn’t the dodgy underworld tool Barry claims it is. It’s a legitimate, transparent system that’s safer than most people think.
2. Myth: Bitcoin is Too Volatile to Be Taken Seriously
Ah, the rollercoaster myth.
You’ve seen headlines screaming about Bitcoin losing 20% of its value overnight and thought, “No way am I putting my money into that circus.”
Fair enough—Bitcoin’s price is about as steady as your mate Kev after a night on the schooners.
But let’s put this into perspective:
- Bitcoin has grown from less than $1 in 2009 to over $167,300 AUD at its peak (as of 18th of December 2024). That’s not just growth—that’s a rocket ship. *However past growth doesn’t indicate future returns.
- Volatility is normal for a new asset. Stocks were volatile back in the day too. People said the same about Amazon shares in the early 2000s. Guess who’s laughing now?
Example: Gold vs Bitcoin
Here’s a cheeky comparison: gold. You know, the shiny stuff your Nan hoards.
Gold’s price has had its fair share of swings too.
In the 1970s, gold rose 400% in a few years, then crashed hard. Sound familiar? Yet gold is now considered the ultimate store of value.
Bitcoin, often called digital gold, is following a similar trajectory.
Takeaway: Volatility is part of the journey. If you zoom out, Bitcoin’s upward trend tells a story worth paying attention to.
3. Myth: Bitcoin Has No Real Value
Barry strikes again: “It’s just numbers on a screen, mate. No one even knows what it is!”
Here’s the thing: value isn’t about physicality.
Your Netflix subscription isn’t tangible, but you still pay for it, right? Value comes from trust and utility. Bitcoin ticks both boxes:
- Trust: Bitcoin’s supply is limited to 21 million coins—ever. It’s decentralised, meaning no government or Barry can print more. Compare that to the Aussie dollar, where inflation erodes its value year after year, because our government can print it whenever they like, does that mean supply is infinite?
- Utility: Bitcoin is fast, borderless, and cheaper to send across the world than traditional bank transfers.
Example: Sending Money Overseas
Say your mate in London needs $1,000 AUD. If you use a bank, it’ll cost you fees, take a few days, and probably make you tear your hair out. With Bitcoin? A few minutes and a fraction of the cost.
Takeaway: Bitcoin’s value lies in its utility as a global currency and a hedge against inflation. It’s like digital property—rare, valuable, and here to stay.
4. Myth: Bitcoin is Too Complicated for Beginners
I hear this all the time: “Mate, I’m not a tech genius. Bitcoin’s way too hard to understand.”
But here’s the truth: Bitcoin for beginners isn’t as scary as it looks.
- You don’t need to understand blockchain to use Bitcoin—just like you don’t need to know how Wi-Fi works to binge Netflix.
- Apps like Swyftx, CoinSpot (the exchange I use since 2017), or Binance make buying Bitcoin as easy as ordering a meat pie on Uber Eats.
Example: Owning Bitcoin in Minutes
My mate Dave (a sparky with zero tech experience) decided to give Bitcoin a go. He setup an account with Coinspot, transferred $50, and boom—he owned Bitcoin in under 10 minutes.
Dave doesn’t care how blockchain works. He just knows his $50 could grow over time and hedge against the rising cost of smoko.
Takeaway: Bitcoin for beginners is simple. Start small, learn as you go, and watch your confidence grow.
5. Myth: Bitcoin is a Bubble That’s Going to Pop
Remember when people said the internet was a bubble? Or smartphones were just a fad? Yeah, they’re probably kicking themselves now.
Bitcoin has been declared dead over 400 times by sceptics, yet here it is, alive and kicking.
Why? Because it solves real-world problems: it’s global, decentralised, and immune to political manipulation.
Real-Life Example: Inflation Hedge in Action
Countries like Argentina and Turkey have seen their currencies crumble due to inflation. Savvy people in these countries are turning to Bitcoin to protect their savings. It’s not just for investors—it’s a lifeline.
Takeaway: Bitcoin isn’t a bubble. It’s a technological shift. The more people use and trust it, the stronger it becomes.
Don’t Let Barry Win
Next time Barry tries to roast Bitcoin at a BBQ, hit him with the facts. Bitcoin’s not dodgy, not worthless, and not just for nerds. It’s an asset, a currency, and a global tool that anyone—even you—can use.
Start small. Do your research. And most importantly, don’t let myths hold you back from learning about the future of money.
Resource Recap - Bitcoin for Beginners
· Read blogs, watch YouTube videos, or even grab a book like The Bitcoin Standard. Educating yourself helps you make better decisions and not fall for scams.
· Cold Wallets: Offline wallets (like USB drives or cards) that keep your Bitcoin safe from hackers, such as the one I use – Tangem.
· In terms of exchanges, some good options for beginners include Binance, Coinbase, or CoinSpot (a local Aussie favourite – this is also the one I use and have been using since 2017).
· IBIT: Blackrock’s Bitcoin ETF – ishares Bitcoin Trust (Australia/US) this is listed on the NASDAQ (IBIT) and I’m invested in this ETF, along with holding a small amount of bitcoin via the exchange Coinspot (been on here since 2017) and majority of my bitcoin via cold storage wallet – Tangem wallet (use my link an get 10% OFF automatically).
Here are some straightforward metrics that beginners can use to assess Bitcoin (see below).
CoinMarketCap illustrates many of the below metrics on one page - https://coinmarketcap.com/currencies/bitcoin/
- Price: The current market value of Bitcoin, indicating how much one Bitcoin is worth in fiat currency (e.g., USD).
- Market Capitalisation: Calculated by multiplying the current price by the total number of Bitcoins in circulation, this metric reflects the total market value of Bitcoin.
- Trading Volume: The total amount of Bitcoin traded within a specific period, showing the level of market activity and liquidity.
- Hashrate: Measures the total computational power used to mine and process transactions on the Bitcoin network. A higher hashrate suggests a more secure and robust network.
- Mining Difficulty: Indicates how challenging it is to mine a new block. The network adjusts this periodically to ensure blocks are added at a consistent rate.
- Transaction Volume: The total number of transactions processed over a certain period, reflecting the network's usage and adoption.
- Number of Active Addresses: Represents the count of unique addresses participating in transactions, serving as a proxy for user activity.
- Fees per Transaction: The average fee users pay to have their transactions processed, which can indicate network congestion and demand.
- Mempool Size: The aggregate size of unconfirmed transactions waiting to be added to the blockchain. A larger mempool can signal higher network congestion.
- Supply Metrics: Includes the total supply of Bitcoin, the number of Bitcoins mined, and the remaining supply to be mined, highlighting Bitcoin's scarcity.
For beginners, focusing on these metrics can provide a foundational understanding of Bitcoin's market dynamics and network health.
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Meta Description: Think Bitcoin is a scam or a bubble ready to pop? Let’s bust the biggest Bitcoin myths with facts, laughs, and why it matters to you. Bitcoin for beginners explained.
This is Part V of your Bitcoin for Beginners: The Quickest Way to Learn About Bitcoin series
Cheers,
Stevo – Armchair Banker MAppFin, AdvDipFP, ADA
‘Meet Stevo, the financial wizard behind Armchair Banker. With 15 years of experience in investment banking, corporate finance, and markets, Stevo’s résumé is so impressive it could intimidate a spreadsheet.’
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The reader should always (we’re serious about this):
1. Conduct their own research
2. Never invest more than they are willing to lose
3. Obtain independent legal, financial, taxation and/or other professional advice in respect of any decision made in connection with this video.
Full Disclosure: Stevo holds Bitcoin at the time of publishing. Using my provided links/affiliate links could result in a payment or fee discount for Stevo, helps keep the lights on mate.
