"Bitcoin Is Only Used by Criminals", "Bitcoin Transactions Are Completely Anonymous", "Bitcoin Is Too Volatile to Be Useful", "Bitcoin Is Only for Tech Nerds", "Bitcoin Is Too Slow for Everyday Payments", "It’s Too Late to Get In", "Bitcoin Can Be Hacked", "Bitcoin Has No Real-World Use"

As of 2025, an estimated 106 million people globally hold Bitcoin, as per Coinweb. The U.S. accounts for 67 million crypto holders, with 22% of American adults owning Bitcoin.

Bitcoin is the internet’s favorite digital rebel. The financial world describes Bitcoin as a scam, a bubble, magic internet money, and the future of finance. Bitcoin generates more rumors than what follows a celebrity breakup.

The constant stream of information from Twitter threads, Reddit rants, and your uncle’s Facebook posts makes it difficult to distinguish reality from blockchain babble. So let’s set the record straight! We’re busting 16 of the most common Bitcoin myths.

"Bitcoin Is Only Used by Criminals"

Let’s start with the favorite fear-mongering line. Sure, Bitcoin has been used for shady stuff—but so has cash, and we don’t see anyone banning Benjamins. In 2022, Chainalysis reported that illicit transactions made up just 0.62% of all crypto transaction volume.

Based on estimates from the United Nations Office on Drugs and Crime, between 2% and 5% of the traditional financial system’s global GDP is lost to money laundering practices. Bad actors exist within the Bitcoin ecosystem, but they represent only a small fraction of its users. Bitcoin itself remains innocent of their actions.

"Bitcoin Transactions Are Completely Anonymous"

Sorry, Bond fans—Bitcoin isn’t your cloak-and-dagger crypto. It’s pseudonymous, not anonymous. Anyone with internet access can view all transactions because they are documented on the public blockchain.

Blockchain forensic specialists Chainalysis and Elliptic focus on tracing cryptocurrency wallets. Bitcoin isn’t ideal for those who want to conduct illicit activities. Privacy enthusiasts can choose cryptocurrencies like Monero, prioritizing security and anonymity above Bitcoin’s pseudonymous model.

"Bitcoin Is Too Volatile to Be Useful"

Volatile? Absolutely. Useless? Not so fast. Bitcoin’s price fluctuations resemble a rollercoaster ride, but its volatility reduces as more people adopt it. In contrast to their unstable local currencies, Bitcoin offers a more stable currency option for hyperinflation-ridden countries like Argentina or Nigeria.

Despite Bitcoin’s dollar price fluctuations, it remains more stable than the unstable economies of emerging markets.

"Bitcoin Is Only for Tech Nerds"

Sure, Bitcoin started in cypherpunk circles. But now? People across multiple generations, including grandparents and hedge fund managers, participate in Bitcoin activities.

User-friendly platforms such as Cash App, Coinbase, and Strike have made purchasing and using Bitcoin as straightforward as ordering a pizza online. Understanding how it works isn’t necessary for using it. In the same way, one doesn’t need TCP/IP knowledge to send an email.

"Bitcoin Is Too Slow for Everyday Payments"

True: Bitcoin alone doesn’t work well when buying your morning coffee. However, with layer 2 technologies, such as the Lightning Network, you get instant payments that cost nothing. El Salvador uses Lightning Network to enable Bitcoin transactions for everyday purchases such as groceries and utility payments.

As CEO of Lightning Labs, Elizabeth Stark actively promotes Bitcoin’s Lightning Network, which improves scalability for real-world payment solutions. Bitcoin enables you to purchase your morning coffee and process payments more quickly than traditional banking apps.

"It’s Too Late to Get In"

Heard this in 2017? 2020? 2023? You’ll hear it again next year. Bitcoin is at the initial stage of adoption among users. Analysts estimate that less than 5% of the global population owns Bitcoin.

Bitcoin investment opportunities resemble the Internet stock boom during the 1990s. Entering at the $1 mark might not be possible, but you haven’t missed your chance to join the party. Long-term market participation always performs better than attempting to time market movements.

"Bitcoin Can Be Hacked"

The myth about Bitcoin’s hackability stems from a misunderstanding between the Bitcoin network and digital exchanges or personal wallets. To be clear, Bitcoin itself has never been hacked. What has been compromised are centralized exchanges (like Mt. Gox in 2014) or poorly secured user wallets.

Advanced cryptography and decentralized consensus provide security for the Bitcoin blockchain. The computing security of Bitcoin’s network stands as arguably the highest standard ever achieved. When you properly protect your Bitcoin with hardware wallets, you achieve better security than most online banks provide.

"Bitcoin Has No Real-World Use"

Tell that to the people in Ukraine, Cuba, or Lebanon who’ve used it to bypass frozen bank accounts and failing currencies. Microsoft, PayPal, and AT&T are examples of businesses that accept Bitcoin as payment.

In 2022, Bitcoin donations to Ukraine exceeded $1 billion in the war’s initial phase. Through the adoption of Bitcoin, transferring value internationally has become significantly faster. Bitcoin is being used right now.

Disclaimer – The Finance Key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. Including links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.