Published on November 2nd, 2018 | by Júlio Ventura0
Best 10 Bitcoin Facts
Hardly a week goes by without hearing a story about bitcoin. One day there are stories of celebrities who made millions from the cryptocurrency. The next, news networks are spelling doom on the digital currency. What is it? Why is the cryptocurrency so famous all of a sudden? Here are top facts about bitcoin every investor deserves to know. Also, you can learn all about it in this Bitcoin infographic.
#1: Digital currency
Bitcoin is a digital currency and a means of payment. In contrast to fiat money, bitcoin is based on a decentralized, peer to peer system. Records are digitally and permanently stored on a ledger known as the blockchain.
Founded in 2009 by Satoshi Nakamoto, the digital currency enables people to make settlements without the need of a bank. You can send bitcoins to anyone around the world without passing the payment through a bank.
The cryptocurrency was designed to change how the world makes payments for the better. Because settlements are made through banks and other financial networks, fees paid are high. The transactions also take longer. Bitcoin’s direct payments take minutes instead of days and attract relatively lower fees.
#2: Not Controlled by Governments
The biggest weakness in fiat currencies is that they are controlled by governments. If poorly managed, the currency loses value. Governments can also inflate the currency’s value at will. Bitcoin was introduced to change all the madness that happens with centralized currencies.
In simple terms, bitcoin is a currency owned by its users. The blockchain network that stores payment records is managed by bitcoin users around the world. The cryptocurrency is also mined in place of being printed. Avid bitcoin users do the mining using advanced devices.
The digital currency’s prices are determined by the law of supply and demand. When the crypto’s demand rises, its price skyrockets. If you’ve been following bitcoin’s news for a while, you may have already witnessed the law in action.
Bitcoin has been rising steadily since it was launched. In the beginning, the cryptocurrency was used by Satoshi and a few other people. By late 2017, millions of investors owned the digital currency, driving its price sky high. This year, the currency’s supply has reduced, lowering its price by more than 60% of its value compared to the same time December 2017.
#3: Price Multiplied 879,999 Times in 7 Years
If you are looking for a reason to buy bitcoin, its phenomenal growth rate is all you need. Since 2010, bitcoin has recorded annual growth rates of more than 100% six of eight years. In 2010, the cryptocurrency rose from $0.003 to $0.29, a nine-month growth rise of 9,567%. The cryptocurrency repeated the success in 2011, 2012 and 2013.
In 2014, the fall of Mt. Gox bitcoin exchange hit the cryptocurrency so hard that it recorded the first annual loss. Bitcoin moved from $800 in January 2014 to $302 by the end of the year, a -62% loss. Bitcoin failed to rise by 100% in 2015 but went on to hit $19,000 by December 2017.
Because of its high fluctuation rate, bitcoin has risen and fallen thousands of times. But in the long run, the currency has gained value more than 900,000 times as of 2018. Investors who remained loyal to the cryptocurrency reaped thousands or millions in profits.
#4: Bitcoin is a Finite Currency
You know governments can always print more money when they want? That can’t happen to bitcoin. The cryptocurrency’s founder programmed the network to be capped at 21 million bitcoin. So far, 80% of bitcoins have been mined totaling to 18 million. The last bitcoin will be mined in 2140, a time that may change the currency’s relevance to the world.
#5: Stored in Wallets, Sort of
Despite not being physical cash, bitcoins are stored in digital wallets. Interestingly, the real bitcoins don’t stay in the wallets also. Instead, the wallet stores two addresses that prove you own the crypto. Still confusing?
A bitcoin wallet is a software that stores the two addresses required to make transactions. The public address helps you receive payments while the private address helps you make withdrawals. If you lose the private address, you risk losing your coins to whoever gets hold of it.
#6: You can buy anything with Bitcoin
Contrary to all the negatively thrown toward the cryptocurrency, it is gaining popularity around the world. Microsoft made a bold move in 2014 when they started accepting crypto payments. Overstock became the first major retailer to do the same.
Today, you can buy luxury cars, pay for your groceries or tuition fees with the digital currency. Around the world, almost every modern business accepts crypto. It doesn’t matter what you intend to buy. A business somewhere is willing to accept your crypto for their services.
#7: You can Earn Free Bitcoins
Sure, bitcoin is worth thousands of dollars. But there are people willing to give you free coins for small jobs. The first bitcoin faucet gave people 5 bitcoins just for signing up on the website. At bitcoin’s peak price, those BTC were worth more than $100,000.
It is unlikely anyone could ever give you 5 bitcoins in 2018 for any reason. But you can earn fractions of bitcoins by doing simple tasks like watching ads. Within a few months, the coins could be worth a couple of a hundred dollars.
#8: Some Casinos Only Accept Bitcoin Payments
The first bitcoin casino was launched in 2013 and a man named Nakowa won $1.3 million worth of bitcoins. As of 2018, there are more than 50 online casinos known for accepting crypto. Like traditional gambling sites, you get lots of games and good services. But the only catch is that you make deposits using bitcoins.
#9: Bitcoin can’t be banned
Because no one controls the cryptocurrency, it can’t be banned. Governments can ban the trade of cryptocurrencies in the countries but they can’t erase bitcoin from the Internet. They may regulate its use and introduce taxes but they can’t do away with it. The cryptocurrency is such powerful that most governments have chosen to monitor its use and find ways to adopt its technology.
#10: Mysterious Founder is a Billionaire
While the mystery behind the name Satoshi Nakamoto may never be solved one thing remains constant. Bitcoin’s founder mined one million bitcoins before he went MIA. Those bitcoins are valued at more than $6 billion as of November 2018. No other bitcoin investor owns as many bitcoins.