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.
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.
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Chelsea Gregori is the PR Specialist at Finder, where she enjoys the ebb and flow of data storytelling, relationship building and link building. Chelsea is passionate about creating content that provides valuable resources to empower the people around her to make the most informed personal finance decisions. Prior to Finder, Chelsea managed the musical duo Well Worn Soles, booking venues and festivals across the Southeast. She also managed her personal homesteading blog, Grow Where You Sow, creating content to guide individuals looking for a slower, more financially savvy lifestyle. When she isn’t diving into the world of digital and traditional PR, she’s hang drying laundry, milking goats, growing gardens, humanely raising happy livestock, making mayonnaise and contributing to a 50-acre subsistence agricultural farm and community.
Every 3 months, Finder empanels a range of industry specialists to get a pulse on what the future holds for crypto. This is a summary of those findings.
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