Some common beliefs about bitcoin do not match the primary sources. Here are eight, each answered calmly with the evidence. None of this says whether a company should hold bitcoin.
"Bitcoin is anonymous."
Every transaction is recorded on a public ledger that anyone can inspect. Addresses are not names, but the history of each coin is visible to everyone.
Source: Satoshi Nakamoto: Bitcoin: A Peer-to-Peer Electronic Cash System (white paper, 31 October 2008, PDF).
"Bitcoin on an exchange is protected like a bank deposit."
In the UK, the FSCS says it cannot protect you if a platform that holds or exchanges most cryptoassets fails. In the US, the FDIC says deposit insurance does not cover crypto assets or the failure of a non-bank crypto firm.
Source: FSCS: Cryptoassets: are they covered, and what is the risk?, FDIC: Fact sheet: what the public needs to know about FDIC deposit insurance and crypto companies.
"If one keyholder loses their key, the money is gone."
In a 2 of 3 multisig, any two keys can sign, so losing one key does not lose access. The remaining keys can move funds to a new wallet.
Source: Bitcoin BIPs: BIP 11: M of N standard transactions (multisig).
"More bitcoin can always be created."
The software caps issuance at 21 million BTC. The subsidy halves every 210,000 blocks, so issuance ends just under that figure.
Source: Bitcoin Core: src/consensus/amount.h: COIN (100,000,000 satoshis) and MAX_MONEY (21 million BTC), Bitcoin Core: src/validation.cpp: GetBlockSubsidy, 50 BTC halved every 210,000 blocks.
"A company has to buy a whole bitcoin."
One bitcoin is 100,000,000 satoshis, and amounts are recorded in satoshis. A company can hold any amount its policy allows.
Source: Bitcoin Core: src/consensus/amount.h: COIN (100,000,000 satoshis) and MAX_MONEY (21 million BTC), Bitcoin developer documentation: Glossary: one bitcoin equals 100,000,000 satoshis.
"Holding a bitcoin ETF is the same as holding bitcoin."
The holder of an exchange-traded product owns a share or note, not bitcoin. It cannot withdraw bitcoin or send it on chain, and the product's custodian holds the bitcoin.
"A bank can reverse a mistaken bitcoin payment."
Control follows the keys. There is no bank to reverse a confirmed payment, which is why checking the address on each signing device matters.
Source: Bitcoin developer documentation: Transactions guide: public keys, private keys and signatures.
"Under US GAAP, bitcoin must be held at cost less impairment."
ASU 2023-08 measures in-scope crypto assets at fair value, with changes in net income, for fiscal years beginning after 15 December 2024. UK and IFRS treatment differs.
Source: FASB: ASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60).
Sources
Primary sources only. Each link was checked on 29 October 2026. Rules change, so confirm the current version with your adviser.
- Satoshi NakamotoBitcoin: A Peer-to-Peer Electronic Cash System (white paper, 31 October 2008, PDF)
- FSCSCryptoassets: are they covered, and what is the risk?
- FDICFact sheet: what the public needs to know about FDIC deposit insurance and crypto companies
- Bitcoin BIPsBIP 11: M of N standard transactions (multisig)
- Bitcoin Coresrc/consensus/amount.h: COIN (100,000,000 satoshis) and MAX_MONEY (21 million BTC)
- Bitcoin Coresrc/validation.cpp: GetBlockSubsidy, 50 BTC halved every 210,000 blocks
- Bitcoin developer documentationGlossary: one bitcoin equals 100,000,000 satoshis
- SECInvestor Bulletin: exchange-traded products providing exposure to bitcoin and ether (September 2024)
- Bitcoin developer documentationTransactions guide: public keys, private keys and signatures
- FASBASU 2023-08, Intangibles: Goodwill and Other, Crypto Assets (Subtopic 350-60)
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This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.
Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.
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