Bitcoin is hard to understand because it challenges just about every belief you have about money.

Here are the most common misconceptions about the Bitcoin network:

1) Bitcoin  has no physical presence so it's worthless

Money is simply a belief system used to transfer value. It doesn't NEED to be physical.

If market participants accept that BTC has value, IT HAS VALUE. Countries like El Salvador have adopted a Bitcoin standard already!

2) Bitcoin isn't backed by anything

BTC has all the characteristics of money: scarcity, durability, divisibility, portability, fungibility, and acceptability.

As long as these characteristics are maintained, demand (and price) will continue to go up.

3) Bitcoin is not scalable

Financial systems are built in layers.

Debit and credit cards are used to support more transactions in the USD system.

Similarly, lightning exists for small transactions on the Bitcoin network, and can support 1 million transactions per second.

4) Bitcoin can and will get hacked

Bitcoin was introduced to the world 13 years ago. IT HAS NEVER BEEN HACKED.

In that same period, Yahoo, Alibaba, LinkedIn, Facebook, Marriott, and Adobe were ALL hacked. Private information from billions of accounts was compromised.

5) Regulations will kill Bitcoin

Custodial services need to be regulated before institutional investors buy Bitcoin.

In reality, regulation will lead to new inflows of capital, and will HELP Bitcoin adoption.