Bitcoin myths vs data

Myth"Quantum computers will crack Bitcoin and send it to zero."

DataGlassnode measured how much bitcoin actually sits behind a public key that is already visible on the blockchain, which is what a future quantum computer would need. The answer was about 6.04 million BTC. The other 69.8% of supply shows no public key at all.

Of that 6.04 million, about 4.12 million is exposed through address reuse and custody habits, and about 1.63 million of it sits on exchanges. Only about 1.92 million is exposed by old script types by design. The reuse part shrinks when people stop reusing addresses, and Bitcoin developers are already discussing upgrades for the rest.

What you can do: use a fresh receive address each time (good wallets do this for you) and hold your own keys. See why a new address matters.

Read next: How Bitcoin addresses work · Choosing a Bitcoin wallet

Source: Glassnode, as summarised in the SHATOSHI post at x.com/SHATOSHI_BTC/status/2113162476120326207

Myth"Hardware wallets got hacked."

DataNot quite. In the reported case the secure chip held. What failed was the setup. Tampered devices from one third party reseller showed a pre-made set of recovery words on screen, and hidden parts read those words and sent them out over a mobile data connection.

A genuine device, bought from the maker, creates its own fresh recovery words that never leave it. The attack only works if you use a device someone else has opened, or accept recovery words you did not generate.

What you can do: make sure the device came from the maker or an official reseller, check the seals, and never use recovery words that came printed or pre-filled. Use our setup checklist.

Read next: Hardware wallets compared · Seed phrases and backups

Source: Reported reseller tampering case, summarised in the SHATOSHI thread at x.com/SHATOSHI_BTC/status/2111847312293064999

Myth"Token burns make a coin scarce like Bitcoin."

DataBitTorrent burned 21.62 trillion of its own tokens, about 2.18% of supply, and called it the start of a deflation model. That one burn is roughly a million times every bitcoin that will ever exist, and about 968 trillion tokens were still left after it.

A burn only means something because a team picked the supply in the first place, and the same team decides the next one. Bitcoin has no team that can do that. Its limit of 21 million is checked by every node.

Read next: How many Bitcoin are there? · What happens when the last bitcoin is mined?

Source: BitTorrent burn announcement, summarised in the SHATOSHI post at x.com/SHATOSHI_BTC/status/2111552479426953614

Myth"The pound is safe and Bitcoin is risky."

DataBitcoin's price swings hard, and that is a real risk. But the pound has a quieter risk of its own: it loses buying power every year. On our Great British Basket index, a pound from 2015 bought only about 73% as much in 2023.

Neither is risk free. The point is that "safe" money still melts slowly, and it helps to know how fast.

Read next: The Great British Basket · Fiat melt

Source: SHATOSHI Great British Basket index, built from ONS price data

Myth"They can just change the 21 million limit."

DataThe limit is a rule in the software, and every node checks it. A block that creates extra bitcoin is rejected by every node that has not chosen to change its rules. Changing the cap would need almost every user to pick new software that makes their own coins worth less.

Read next: How many Bitcoin are there? · Why 21 million?

Source: Bitcoin consensus rules, see our guide