Bitcoin myths persist in boardrooms, often based on headlines from years ago. Some were never accurate; others were once fair but are now out of date. Clearing them away does not make the case for holding Bitcoin. It simply lets a finance team focus on the risks that actually matter. Here are seven we hear most often, with the facts.
For a broader introduction, start with what is Bitcoin? A CFO's guide.
Bitcoin myths about supply and security
Myth 1: "Someone can just create more Bitcoin"
The fact: Bitcoin's issuance is fixed in the rules that every full node enforces. The supply is capped at 21 million, and new issuance halves every 210,000 blocks. A miner who tried to award itself extra bitcoin would have its block rejected by the thousands of independent nodes that check every block.
Changing the cap would require the economic majority of holders, exchanges, custodians and node operators to adopt new software voluntarily, against their own interest. In practice, that makes the cap one of the most stable features of the system.
Myth 2: "Bitcoin has been hacked many times"
The fact: Exchanges, custodians and individual wallets have been hacked. The Bitcoin protocol has not been broken in a way that let anyone take coins from addresses they did not control. Losses come from weak key storage, poor processes and failed intermediaries.
This matters because it points to the right controls: custody design, verification and counterparty selection. See can Bitcoin be hacked?.
Myths about audit and accounting
Myth 3: "Bitcoin can't be audited"
The fact: Bitcoin is in some ways easier to verify than many assets. Every transaction is on a public ledger that anyone can inspect. Auditors can confirm movements, test control of addresses through signed messages, and obtain custodian confirmations and service organisation reports.
Large listed companies have held Bitcoin on audited balance sheets for several years. The work is specific, but well understood, and audit firms have built dedicated procedures for it.
Myth 4: "The accounting makes it impossible"
The fact: This was partly fair before 2025 under US GAAP, when Bitcoin was treated as an indefinite-lived intangible: written down on falls, never written back up on recoveries. FASB's ASU 2023-08 changed that. In-scope holdings are now measured at fair value through net income, for fiscal years beginning after 15 December 2024, with early adoption permitted.
Under IFRS, holdings are generally intangible assets under IAS 38 or, for some holders, inventory under IAS 2. The result is workable, though gains on revaluation go to other comprehensive income. See ASU 2023-08 explained. Companies should take their own accounting advice.
Myths about use and access
Myth 5: "It's mainly used for crime"
The fact: Illicit use exists, as it does with cash and bank transfers. But the public ledger makes Bitcoin a poor choice for anyone who wants to stay hidden: every transfer is permanently traceable, and blockchain analytics firms work routinely with law enforcement.
For a company, the practical response is screening, not avoidance. Regulated providers apply KYC, sanctions screening and the FATF Travel Rule. See AML, KYC and the Travel Rule.
Myth 6: "You need to buy a whole bitcoin"
The fact: Bitcoin is divisible to eight decimal places. The smallest unit, a satoshi, is one hundred-millionth of a bitcoin. A company can hold any amount its policy allows, recorded to eight decimal places in its systems.
This myth matters less for corporates than individuals, but it still surfaces when boards think about sizing in "coins" rather than as a percentage of reserves.
Myth 7: "Serious institutions don't touch it"
The fact: This has not been true for some time. Key milestones include:
| Date | Event |
|---|---|
| August 2020 | MicroStrategy (renamed Strategy in 2025) begins its Bitcoin treasury |
| February 2021 | Tesla discloses a US$1.5bn Bitcoin purchase |
| December 2022 | Basel Committee publishes its prudential standard for banks' digital asset exposures |
| January 2024 | SEC approves US spot Bitcoin ETFs |
That does not mean every company should hold Bitcoin. It means the question is now a normal treasury question, with established infrastructure: regulated custodians, OTC desks, audit procedures and accounting standards.
The shift also changes the board's reference points. Directors can now look at how other listed companies have disclosed holdings, framed their policies and explained the accounting to investors. That does not make any particular decision right, but it does mean a finance team is no longer working without precedent.
A last observation: myths tend to cluster at the extremes. Some directors hear that Bitcoin is a scam; others hear it can only go up. Both views skip the analysis. The productive middle ground is to treat Bitcoin as an asset with specific properties and specific risks, and to judge it against the company's own objectives.
The risks that are not myths
A fair discussion states the real risks as plainly as it corrects the myths:
- Volatility. Bitcoin's price has fallen by more than half several times in its history. Any holding must be sized to survive that.
- Custody risk. Keys can be lost or stolen, and errors cannot be reversed.
- Counterparty risk. Providers can fail.
- Earnings volatility. Under fair value accounting, price moves flow through the income statement.
- Reputational and regulatory risk. Stakeholder views and rules vary by market.
The main risks of a corporate Bitcoin treasury sets out controls for each.
Before a board discussion, circulate a one-page "myths and risks" sheet: the myths you expect to hear, corrected briefly, and the real risks alongside the controls you propose. It moves the debate to the right questions.
How The Bitcoin World helps
We help CFOs prepare balanced, factual board materials that separate myths from real risks, and design the controls that address those risks. Execution, custody and settlement are carried out by licensed third-party institutions. See our board advisory work.