Top Bitcoin myths in the United States

A lot of misconceptions have accompanied the blast of Bitcoin interest over the years. Folks are wondering, is cryptocurrency real money?

Finder conducted an online survey of 2,040 American adults in October 2021 to determine what Bitcoin myths Americans did and didn’t believe. The most common myths include the belief that Bitcoin has been around for more than 15 years (23%), that Dogecoin is a type of Bitcoin (17%) and that you can’t buy things with Bitcoin (14%).

Although none of these misconceptions are not as damaging as not believing that Bitcoin is taxable, they’re still worthy of the truth.

• Respondents by gender
• Respondents by generation

Myth: Elon Musk invented Bitcoin

Although it seems like Elon Musk has a fair amount of influence on Bitcoin’s value, he is not the creator of Bitcoin itself. In 2008, a group of cryptographers received a 9-page paper from an unknown source named Satoshi Nakamoto. The paper outlines a new form of electronic cash that would soon become Bitcoin. Musk has continuously denied accusations of working under the pseudonym of Satoshi Nakamoto. In January 2022, he announced that he might have cracked the mystery of who the real Satoshi is. Still, 13.6% of millennials believe Musk invented Bitcoin, followed by gen X (11%), gen Z (11%), baby boomers (9%) and the silent gen (6%).

More men (13%) than women (9%) believe the myth that Musk created Bitcoin.

Whether it’s hype or not, our main question is, “Will the real Satoshi please stand up?”

Myth: Bitcoin has been around for more than 15 years

Formally launched in 2009, Bitcoin celebrated its 13th birthday this year (2022). This digital currency followed the Great Recession as a global financial crisis ensued, along with a growing distrust of banks’ roles in our financial system and the US housing bubble bursting.

At the time of the Great Recession, millennials were entering a workforce on rocky ground, buried in debt, hesitant to become homeowners and struggling to find fair-paying work at the expense of an economic downturn. Millennials take the lead again with 29% believing Bitcoin is over 15 years old. Following millennials is gen Z (23%) and baby boomers (22%), with the silent generation not far behind (16%).

Myth: There are less than 100 different cryptocurrencies

It’s said that there are now more than 10,000 altcoins floating around the Internet ether. When investing in cryptocurrency, always do your research into different altcoins and fresh, new coins on the market. Different coins provide different functionalities. More men (23%) than women (12%) believe there are less than 100 different crypto coins. Generational data shows 18% of millennials fall victim to the myth, with 14% of gen X, 12% of baby boomers, 11% of gen Z and 9% of the silent gen.

Myth: You can’t use Bitcoin to buy things

16% of millennials, 15% of baby boomers, 14% of gen X and gen Z followed by 11% of the silent gen don’t believe you can make payments with Bitcoin. 15% of women doubted Bitcoin’s purchasing capability followed closely behind by 14% of men. With the worldwide adoption of Bitcoin, more businesses will begin to accept BTC and other coins as payment moving forward.

A recent Finder analysis discovered that some states are ahead of the game, with New Hampshire, Nevada, Kansas, New Mexico and Florida ranking in the top 5 states with the best crypto infrastructure.

Myth: Bitcoin is a physical currency

A common reason why cryptocurrencies are as bewildering to some people as they are is that you can’t hold a Bitcoin in your hand like paper money. You can utilize crypto ATMs and exchange your BTC for USD, but you still won’t be holding BTC physically. Virtual, digital currencies are considered similar to your traditional credit card – when you swipe, you’re technically using a digital currency.

A recent Finder survey found that 5% of Americans already carry a crypto credit card and an additional 13% are interested in the option. However, currency has been digital since the first credit card was introduced in the 1950s.

Myth: Bitcoin is used mostly by criminals

Almost 6% of women believe BTC is used mostly by criminals, followed by just under 8% of men. There might be an increased interest by criminals because Bitcoin and cryptocurrency are generally more protected and private. With any form of currency comes criminal activity, but to say Bitcoin is primarily utilized by ill-intentioned individuals wouldn’t be accurate. In fact, Bitcoin transactions are fully traceable within the network. With the right know-how, your illegal transactions can sometimes be traced right back to the culprit.

Myth: Dogecoin is a type of Bitcoin

With potentially over 10,000 altcoins created, it’s understandable for crypto newcomers to hit a wall of confusion about each coin and its function. Almost 17% of adult Americans believe Dogecoin (DOGE) is a type of Bitcoin.

Dogecoin is a coin in itself, with a Shiba Inu dog representing the coin’s face. DOGE was originally a sarcasm coin and has now become one of the most well-known coins. A peer-to-peer cryptocurrency exists on its own blockchain with technology derived from Litecoin. Unlike Bitcoin, there’s an unlimited supply of Dogecoin.

Myth: There is an infinite supply of Bitcoin

Believing that digital currency can be infinitely produced is a fallacy. Still, 9% of the silent gen and gen Z believe there is an infinite supply of Bitcoin, followed by 8% of millennials and baby boomers and 7% of gen X. The number of Bitcoin there is as of January 2022 is around 19 million, with that number changing every minute. As for the total number of Bitcoin, there will only ever be 21 million Bitcoin in existence.

So what happens when all the Bitcoin is mined? You can continue trading Bitcoin and even buy a fraction of a coin. The smallest fraction available is named “satoshi” after the anonymous creator of Bitcoin. It represents a ratio of 100 million satoshi to 1 Bitcoin.

Frequently asked questions

• What did Warren Buffett say about Bitcoin?

  Warren Buffett has been one of Bitcoin's most vocal critics. At the 2018 Berkshire Hathaway shareholder meeting, he called Bitcoin "probably rat poison squared," and told CNBC that cryptocurrencies would "come to a bad ending."

  He has since described Bitcoin as "a gambling token" with no intrinsic value, comparing it to a roulette wheel, and at the 2022 shareholder meeting said he wouldn't accept all the Bitcoin in the world for $25, because it "doesn't produce anything."

• What does Bill Gates think of Bitcoin?

  Bill Gates has been broadly skeptical of Bitcoin. He has called crypto and NFTs "100% based on greater fool theory" — the idea that overvalued assets only go up when there are enough investors willing to pay more for them — and said he prefers investments like farms or companies that produce actual output. He has also warned average investors about Bitcoin's volatility, saying "if you have less money than Elon, you should probably watch out."

  That said, Gates has distinguished Bitcoin from digital currency more broadly, supporting regulated digital money as a tool for financial inclusion — particularly in poorer countries.