Since its inception Bitcoin has been surrounded by negativity, or Fear, Uncertainty, and Doubt (FUD). It has been called a speculative bubble, a scam, a scheme, and countless other connotations. Some of it is not undeserving; but in reality, most of it is plain misunderstanding. Bitcoin is a real project with real technology behind it. Millions of dollars pour daily into blockchain R&D and project start-ups. These are some quick comparisons between FUD and facts:
FUD: Most ICO promoters are scams.
FACT: That’s a 50/50; yes, there are a lot of fraud created through ponzi schemes, but there are also start ups founded by highly experienced people.
FUD: Blockchains are inefficient
FACT: First and Second generations are so, but newer blockchains are the complete opposite and the sky is the limit for the future versions. Scalability is expanding through innovations like sharding, block lattices, artificial intelligence, and quantum computing.
FUD: Investors must be prepared to lose all their money.
FACT: The crypto market is extremely volatile and speculative. Success is dependent on personal financial expertise, timing, and research. And all three are summarized in one basic principle: buy low and sell high. There’s also the danger of hacking and phishing to contend with. But this has a counter too; DYOR (Do Your Own Research). Experience investors do extensive research into a project before investing in it. The premise of total loss comes from inexperience and the lack of knowledge.
FUD: Crypto currencies are only useful for illegal activities.
FACT: Crypto currencies are versatile and their distinctive functionalities make them suitable for a variety of transactions. In fact, Bitcoin was once used as means of secret communication.
There are camps arguing both sides of the coin and they seldom agree. Reality is somewhere in the middle. Crypto currencies make for a quick way to lose money but they are also a good opportunity to make incredible gains. At the end of the day, it’s a very individualistic process and performance is dictated by greed, discipline, and knowledge. It’s like a game. It has rules and it’s full of adversaries. But putting the time to learn how to play can turn the FUD into gains. Failure to do so will send you home broke.