Interesting Facts You Need to Know About Cryptocurrency
Bitcoin is the rave now. From every indication, it appears that it would mature into the norm as time progresses. Governments in some countries are even working to institutionalize the cryptocurrency trade.
Irrespective of its popularity, cryptocurrency is still shrouded in a lot of mystery. That comes as no surprise, especially since the prefix “crypto” indicates something hidden. Added to that, cryptocurrency terminologies are complex to comprehend.
People with average financial literacy instantly recoil at phrases like “decentralized system of blockchain”, for instance. So, for the common man, cryptocurrency is as good as rocket science. You can access reviews about cryptocurrency trading platforms to aid your understanding.
In this article, we would look at some interesting facts about cryptocurrency.
1. Nobody Knows the Inventor of Bitcoin
As large as it is, this cryptocurrency industry has no known owner. Some have come forward to claim what seems to be a vacant position at the top of the chain, but they weren’t considered credible.
However, a rumor on the internet has it that an owner is a man named Satoshi Nakamoto, but that is still clouded in mystery.
2. Cryptocurrency Can’t be Banned
Although some countries have opened their arms to cryptocurrency, others have expressed concerns over its volatility. They also fear that it would weaken their control on commerce, or that it may be used to fund terrorism.
Countries have made moves to ban it, but this is physically impossible as anybody can access a crypto wallet.
3. Cryptocurrency Doesn’t Recognize International Borders
Since cryptocurrency doesn’t operate under a centralized economy, transactions can be made without the usual hassles of foreign exchange.
4. Cryptocurrency is Volatile
This is its biggest downside. Like the sharp rise and fall of stocks, cryptocurrency can be quite unpredictable. The risks are high. A dramatic shift in value can cause you to lose a lot. For this reason, risk-averse people want nothing to do with it.
5. The Private Keys
Private keys are your means of accessing your crypto wallet. However, unlike regular credit cards, it is impossible to regain your funds if you lose the key.
Humans ask the existential question: where do we go when we die? When you lose your key though, your funds vanish into a void where nobody can ever access them.
6. The 21-million Limit
A lot like oil, Bitcoin is exhaustible. Bitcoin supply will never exceed 21 million BTC. As of the time of writing, over 18 million bitcoins have already been mined. The mined bitcoins are currently being used in crypto transactions, but not forever. By the year, 2140, all Bitcoin would have been mined.
7. China is the Biggest Miner
The world’s most populous nation controls 75% of this venture. Mining, to be clear, has little to do with digging with an ax. Bitcoin mining is with high-end supercomputers. By mining, it means injecting new bitcoins into circulation. Mining is also important in developing the blockchain ledger.
8. The First Bitcoin Purchase was for Two Boxes of Pizza
Pizza for 10,000BTC! Although Bitcoins are now grand, they were once ridiculously cheap. As of the 22nd of May in 2010 when this purchase was made, 10,000BTC was worth a paltry $41. Today, that’s worth half a billion dollars.
We hope you now know some of the interesting facts surrounding this relatively new digitalized mode of financial exchange.