Myths & facts: 12 claims about Bitcoin put to the test

Claims about Bitcoin run in both directions: sceptics make it look worse than it is, fans better. Here are twelve of them, six from each side, checked against sources.

The 12 myths at a glance

Guess first, then flip the card. The evidence follows below.

Six myths that make Bitcoin look worse than it is

1. ‘Bitcoin is mainly money for criminals.’

Verdict: Not true as stated. According to Chainalysis, illicit addresses received at least $154 billion in crypto assets in 2025. That was less than 1% of attributed volume, and 84% of it went through stablecoinsGlossaryStablecoinA crypto-asset whose value is meant to be pegged to a currency such as the US dollar or the euro. Unlike bitcoin, a stablecoin has an issuer – its value depends on the issuer keeping its reserves and remaining solvent.In the glossary →×.^[1]

But: the figures are lower bounds and are often revised upwards later.^[1] More in Criticism & risks.

2. ‘Bitcoin gets hacked all the time.’

Verdict: Misleading. According to Chainalysis, more than $3.4 billion in crypto assets was stolen between January and early December 2025, around $1.5 billion of it in February at the exchange Bybit alone.^[2] What was cracked were services and accounts, not the rules of the Bitcoin network.

But: private wallets are hit too: around 158,000 cases in 2025, with combined losses of $713 million.^[2] How to protect yourself: Spotting & avoiding scams.

3. ‘One Bitcoin transfer uses as much electricity as a household in a month.’

Verdict: Misleading. The Digiconomist index works with around 820 kWh per transaction, about 28 days of a US household’s consumption (as of September 2026). But that is total consumption divided by the number of transactions – the index derives the consumption itself from miners’ revenue.^[3] One more transfer barely increases it.

But: total consumption is high; see Energy & the environment.

4. ‘A state can simply switch Bitcoin off.’

Verdict: Not true. After China’s mining ban in June 2021, China’s measured share of computing power fell to practically zero. The network kept running, and by September 2021 China was back at around 22% – probably through covert mining.^[4]

But: states can ban exchangesTermExchange (crypto exchange)A trading platform where buyers and sellers trade bitcoin with each other via an order book.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary →AdLicensed providers with a paid linkProviders from our comparisonKrakenExchange · MiCA (Central Bank of Ireland)Visit Kraken* (paid link, opens in a new window)BitvavoExchange · MiCA (AFM, Netherlands)Visit Bitvavo* (paid link, opens in a new window)CoinbaseExchange · MiCA (CSSF, Luxembourg)Visit Coinbase* (paid link, opens in a new window)All 7 compared – including non-partners →*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.×, banks and payment routes, and so make access within their borders much harder.

5. ‘Quantum computers will soon make Bitcoin worthless.’

Verdict: Exaggerated. A quantum computer that can break Bitcoin’s signatures doesn’t exist yet. The authors of BIP-361 cite estimates that one could be possible between 2027 and 2030 at the earliest; such timelines are disputed. Their draft describes a migration to quantum-resistant schemes – nothing has been decided.^[5]

But: the risk is real: as of 1 March 2026, more than 34% of all bitcoin had their public key exposed on the blockchain.^[5] So use each receiving address only once and keep your wallet up to date. More in Criticism & risks.

6. ‘A bitcoin is far too expensive; I’m too late.’

Verdict: Faulty reasoning. One bitcoin consists of 100 million satoshisGlossarySatoshi (sats)The smallest unit of Bitcoin: 1 satoshi (‘sat’ for short) equals 0.00000001 BTC, so one bitcoin consists of 100 million sats. The unit is named after Bitcoin’s creator, Satoshi Nakamoto.On the learning path: Stage 1 · Step 4 – Sats & units →In the glossary →× (sats).^[6] At an example price of $80,000, $50 gets you exactly 62,500 sats; right now it’s 1,169 sats per dollar. The price of a whole bitcoin says nothing about whether you’re ‘too late’. You can convert amounts with the sats converter.

But: even $50 in bitcoin can lose more than half its value in a short time.

Six myths that make Bitcoin look better than it is

7. ‘Bitcoin is anonymous.’

Verdict: Not true. Bitcoin is pseudonymous. The whitepaper itself says so: all transactions are public; only the link to individuals is missing.^[7]

What this means for you: if you buy on an exchange with identity verificationGlossaryKYC (Know Your Customer)The obligation of regulated providers to identify you before the business relationship starts and to ask, for example, about its purpose and, where necessary, the source of your money. In Germany, the legal basis is the Money Laundering Act (GwG).On the learning path: Stage 4 · Step 3 – Buying Bitcoin →In the glossary →×, your addresses are linked to your name. More in Privacy with Bitcoin.

8. ‘Bitcoin reliably protects against inflation.’

Verdict: Disproved in the short term. In October 2022, euro-area inflation reached 10.6%.^[8] In the same year, the bitcoin price fell from around $46,200 to around $16,500, a drop of about 64% (year-end closing prices).^[9]

But: supporters argue with the limited supply over the long term. That is a thesis, not a certainty. More in Money, inflation & trust.

9. ‘The price rises after every halving – the four-year cycle is a sure thing.’

Verdict: So far, yes; reliably, no. All four halvingsGlossaryHalvingEvery 210,000 blocks – roughly every four years – the number of new bitcoin per block is cut in half. The fourth halving, on 20 April 2024, reduced it from 6.25 to 3.125 BTC.On the learning path: Stage 2 · Step 2 – Halving & 21 million →In the glossary →× were followed by a new high, but the rise shrank: after the last three, the high reached around 17, 3.5 and most recently 1.8 times the previous one (daily closing prices in US dollars, own calculation).^[9] Four cases don’t make a rule.

But: each of these highs was followed by a fall of more than half, most recently of around 53% by the end of June 2026.^[9] More on cycle theories in Holding for the long term.

10. ‘Bitcoin mining is clean now.’

Verdict: Disputed. In a Cambridge survey, mining companies representing around 48% of the network’s computing power reported getting 52.4% of their electricity from renewables and nuclear – self-reported.^[10] A study of the 34 largest US mines, by contrast, found 85% fossil-fuel power (mid-2022 to mid-2023). It examined which power plants responded to the mines’ additional demand.^[11]

11. ‘Owning bitcoin automatically makes you free and independent.’

Verdict: Only with self-custody. Bitcoin was designed as a payment system without a trusted intermediary.^[7] If you leave your bitcoin on an exchange, you depend on such an intermediary again. The collapses of Mt. GoxGlossaryMt. GoxA Japanese Bitcoin exchange that collapsed in February 2014. Around 850,000 BTC were missing; just under 200,000 turned up again. Since July 2024, the trustee has also been repaying creditors in bitcoin; the current deadline is 31 October 2026.On the learning path: Stage 5 · Step 1 – Understanding custody →In the glossary →× and FTXGlossaryFTXA large crypto exchange that collapsed in November 2022. Around $8 billion in customer funds was missing, and founder Sam Bankman-Fried was sentenced to 25 years in prison. Customers got dollars back instead of their bitcoin.On the learning path: Stage 5 · Step 1 – Understanding custody →In the glossary →× show what can happen then.

What this means for you: independence begins with self-custodyGlossarySelf-custodyYou hold the private keys to your bitcoin yourself – in your own wallet rather than with a provider. Nobody can freeze your bitcoin. But nobody can help you if you lose your seed phrase and keys.On the learning path: Stage 5 · Step 1 – Understanding custody →In the glossary →× – and so does responsibility for your keys. More in Understanding custody.

12. ‘If you hold for long enough, you can’t lose.’

Verdict: False. Holding for longer has historically reduced the risk of loss a lot, but never eliminated it. If you bought on 16 December 2017 for around $19,200, you were still about 13% down five years later (daily closing prices, own calculation).^[9]

What this means for you: plan so that you can get through a long decline without having to sell. Figures for every holding period: Holding for the long term.

How to spot a myth

Almost every myth has a kernel of truth that gets blown up into an absolute statement.

What’s next?