There are many misconceptions about Bitcoin among the general public, which have led to a negative image of Bitcoin and triggered harmful outcomes for the crypto community and ecosystem. Moreover, some countries with low financial literacy often associate Bitcoin with negative things. So, how should we "properly view" Bitcoin?
#1 Bitcoin is a Digital Asset.
This is a key understanding that must be emphasized repeatedly: Bitcoin is a digital asset with no physical form. Many people out there try to sell "physical" Bitcoin and end up scamming many, especially beginners who don’t yet understand what Bitcoin really is. Bitcoin is a digital currency that is "mined" using computing power through a system called "Proof of Work" (PoW).
#2 Bitcoin is Not a “Get Rich Quick” Tool.
Many people still believe that Bitcoin is a way to get rich quickly. Some even think it’s a marketing tool or has a structure like a multi-level marketing scheme. In reality, Bitcoin is a scarce instrument that can be used as a hedge against inflation. It’s not that Bitcoin is always going up — rather, the value of fiat currency is continuously weakening, making prices seem relatively higher.
#3 Bitcoin Moves in Cycles.
Many people, especially beginners, believe that Bitcoin’s price will keep rising indefinitely without ever falling. This belief is inaccurate, as Bitcoin moves in cycles. There are cycles where prices continue to rise (bull markets), and there are cycles where prices decline (bear markets).
#4 Holding Bitcoin Requires a Long-Term Mindset.
Therefore, as a "holder" — someone who invests in Bitcoin — a long-term mindset is essential. Don’t just "jump in" with all your money at once. Start slowly, buy gradually, and take the time to learn more in-depth, because Bitcoin is essentially a form of currency. Holding Bitcoin is like holding any other currency.