1. Bitcoin is insecure
Stories about exchanges, wallets, and marketplaces being hacked had caused the public to think that bitcoin itself is insecure. However, all the hacks that had occurred were on the infrastructure supporting Bitcoin. The cryptocurrency and its protocol has never ever been hacked before.
In addition, there are more and more secure ways of keeping your Bitcoin nowadays. For example, using a cold wallet to store your funds offline instead of a hot wallet.
Read more: Hot Wallet VS. Cold Wallet
2. Bitcoin is anonymous
The more accurate way to describe Bitcoin is that its addresses are pseudonymous. It means that there is a known address (or multiple addresses) for every user on the network, but nobody knows exactly who is behind each address. Anyone can create a bitcoin wallet and address anytime, anywhere.
Bear in mind that every transaction is recorded on a public ledger and will stay there forever. With the advancement in technology of a few blockchain analytics companies, it's possible to de-anonymise transactions recorded on the network.
3. Bitcoin is absolutely transparent
This is another popular myth that Bitcoin is absolutely transparent. As mentioned above, you won't find out who is behind each address and there are also other features such as Confidential Transactions and Zerocash that will be available in the market to help enhancing privacy.
4. Bitcoin isn't a currency
Many argued that Bitcoin isn't a currency due to its instability of value, no physical existence, and lack of governance by the central bank or government. However, with countries like Venezuela and Zimbabwe that are plagued by hyperinflation, it's understandable that people are getting nervous about the volatility of fiat currency.
A currency refers to money in any form when in actual use or circulation as a medium of exchange. Historically, humans have been using different things as a currency, such as shells, metals, gold, paper and now, cryptocurrencies. A new currency that is more innovate and efficient will replace the old ones, just like any other technology.
5. Bitcoin is used by terrorists and criminals
Whenever Bitcoin is brought up in the news or TV show, it's almost always being a currency used for criminal activities such as fraud, money laundering, and terrorism. However, a Europol investigation has found, "“Despite third-party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists to finance their activities, this has not been confirmed by law enforcement.”
Even thought Bitcoin is commonly used for transactions on the dark web, the fact is that protocol that shows all transactions on a public ledger makes it an undesirable choice for criminals. Cash is still the most preferred payment method as it doesn't leave any paper trail.