5 common misconceptions about Bitcoin and other cryptocurrencies:

1. You have to buy an entire coin to get into the market.

With the price of one Bitcoin hovering above $53K right now, having to buy an entire coin to get involved in the market would severely limit the pool of potential investors. Luckily, this is absolutely not true. In reality it’s very common to buy fractional shares of coins and it can be done on any crypto trading app, like Coinbase or even Venmo for some coins. .001 Bitcoin costs about $60, and you can buy fractions down to 546 Satoshis (a unit that represents one hundred millionth of a Bitcoin) which costs about 29 cents.

2. Bitcoin is illegal, or it’s only used for illegal purposes

In the U.S., the transaction, sale and purchase of Bitcoin and other cryptocurrencies is legal. And while people may be using it for illegal purposes (like paying for things that are illegal, laundering money, etc), that’s not its purpose, nor is that its primary use. Buying or holding cryptocurrency in no way affiliates you with that — just like people doing illegal things with traditional currencies doesn’t affiliate you with crimes.

3. Crypto is too volatile to be used as a currency

People often say that Bitcoin is too volatile to be used as a traditional currency, and I have to admit that this misconception is actually kind of true. The misleading part is that that’s the only purpose or use of Bitcoin. In reality, crypto is more closely related to gold than it is to the dollar, at least for now. You can buy things using Bitcoin and some other crypto, like a Tesla or tickets to see the Dallas Mavericks, but at this point, it might be a better idea to hold your Bitcoin and spend your dollars.

4. The system is unregulated and not secure

It’s true that there is no central governance of Bitcoin, and it's not regulated by our government, but that doesn’t make it insecure or unregulated. Bitcoin and many other cryptocurrencies are backed by blockchain technology which is incredibly secure (it’s part of the basis for the creation of Bitcoin).

As for the security of your finances on the blockchain, or when holding crypto, it’s in your hands. You’re responsible for your own wallet (where you hold your funds) and are the only person who should have access to it. While that makes it impossible to access your wallet if you lose access, it also makes it impossible for the government or any other central power source to shut you out or limit access to your funds.

5. Crypto and Bitcoin are too complicated for regular people

Since you’re reading this newsletter, you’re probably past this one, or at least open to getting past it. But it’s still a pretty common thing to think and you probably know a few people who are completely uninterested in learning about it because it’s too intimidating. As crypto becomes more mainstream, more people are learning about it and sharing it. You can help demystify crypto by sharing this newsletter with a friend!

Last but not least, the extra-bonus-busted-misconception: it’s too late to get involved in Bitcoin. As crypto-mega-investor and wronged Facebook twin, Cameron Winklevoss tweeted in February: “If you’re reading this, you are early to #Bitcoin. How do I know? Imagine thinking you were late to aviation 10 years after the Wright brother's first flight in Kitty Hawk. Large-scale commercial aviation is still decades away and ppl are still crossing the Atlantic on steamers.” While you might hear people talking about the ups and downs of the market, bubbles and dips and everything in between that affect your buy-in price, according to most people involved in the crypto space the limit is not here yet.

There’s a lot to know about Bitcoin and we’re all continuously learning. Let me know if you have any questions by sending me an email, or on Facebook or Instagram.