A IRCI 2021 report found that there are still some Singaporeans that think Bitcoin is a scam. In this video, I’ll address the 10 common misconceptions of Bitcoin, so that you can understand Bitcoin a little better.
► Get your free stock from Moomoo:
► Get your free stock from Tiger Brokers:
► Keep Bitcoin in Hodlnaut for high interest rate
► Keep Bitcoin in BlockFI for high interest rate
► Sign up to Syfe and get 6 months FREE with referral code: KELVIN
► Binance.com to buy in USD
► Sign up to crypto.com with code “kelvinlearnsinvest”
► Interactive Brokers for best commission rates:
► Keep Bitcoin in Ledger securely
► Invest with StashAway:
► Get $20 off Endowus access fee:
► Discord chat:
0:00 – Intro
1:08 – Bitcoin has no intrinsic value
We can’t value Bitcoin the normal way we value stocks. Bitcoin has value because they are useful as a form of asset, we can use Bitcoin as store of value, to buy stuff and treat it as an investment.
2:16 – Governments will ban Bitcoin
Bitcoin is a decentralized currency, so the government cannot control it. Many countries like China, India are cracking down on Bitcoin. But there’s zero chance that countries like US and Singapore will ban Bitcoin. Because companies, large investors, financial institutions, El Salvador, and even Temasek own Bitcoin. Banning Bitcoin would be a direct attack on these institutions.
Another reason Bitcoin won’t be banned is because of game theory. If US bans Bitcoin, it will lose all the income tax from Bitcoin transactions. Other countries would be happy to accept these businesses instead.
3:26 – Bitcoin energy wastage
Bitcoin has the same energy consumption as Ukraine, a country with 44 million population. But Galaxy Digital found that the banking system uses 2 times more energy when compared to Bitcoin.
Bitcoin incentivizes clean energy and innovation. Many miners are looking to renewables and using wasted energy to mine Bitcoin.
4:33 – Bitcoin used for illegal activity
Bitcoin is a very bad currency for illegal activity, because it leaves a very clear paper trail, and can be tracked. The US was able to recover the Bitcoin ransom paid to the Colonial Pipeline hackers because of this. It was found that for every $1 spent in BTC on the Darknet, $800 is laundered in cash. A report co authored by former CIA director found that recently only 1% of BTC was used for illegal activity while 2-4% of cash were used for illegal activity.
5:37 – Bitcoin will be replaced by a new crypto
Bitcoin won’t be easily replaced by a new crypto because of network effect. It is the largest crypto and has the highest adoption rate.
6:39 – Bitcoin is a scam
You don’t have to blindly trust Bitcoin, because you can verify everything yourself through code and transactions. Bitcoin is decentralized, meaning there’s no 1 person controlling it. The developers also want the best for Bitcoin, they prevented Binance from reorganizing Bitcoin in 2019.
7:41 – Bitcoin is too volatile to be store of value
Bitcoin is still a very new currency and will take a while to be mature. ARK Invest found that Bitcoin volatility has been decreasing over the years. As more and more people hodl BTC, it will reduce the number of Bitcoin being traded on the market, leading to lower and lower volatility
8:34 – Bitcoin can’t be used as means of payment
An average Bitcoin transaction takes 10-20 minutes to complete. But Bitcoin isn’t actually designed to be used as means of payment. To solve this, you can add the Lightning Network to use Bitcoin as means of payment.
9:20 – Bitcoin is a bubble
Bitcoin price went up because more and more people are starting to adopt Bitcoin by hodling it in their balance sheet and portfolio. Similar to gold, even though the world has moved from the gold standard, gold still manage to hold its value and even went up over the years.
10:12 – Quantum computing will destroy Bitcoin
Experts know the quantum computing are coming and are already working to improve the cryptography to handle this. So, Bitcoin won’t be destroyed by quantum computing.