While Bitcoin and cryptocurrencies have become mainstream since the increased rate of adoption and the announcement of JPMorgan’s JPM coin and Facebook’s Libra has made it increasingly popular. Most people are aware of cryptocurrencies, however we have compiled a list of interesting facts that you didn’t know about cryptocurrency.
The total number of Bitcoins that will ever be is 21 Million
The creators of Bitcoin ensured that there will ever be only 21 Million Bitcoin of which 16.8 Million have been mined already. Couple this with the fact that Bitcoin halving reduces the number of Bitcoins being circulated by 50% every 4 years. After 21 million have been mined, there will be no more Bitcoins available for mining and the demand for the limited supply will ensure that the price of Bitcoin stays relatively high.
Bitcoin is not safe from 51% attack and can be hacked
Earlier in June when Binance suffered a major security breach, $40 Million was stolen from the exchange and the CEO CZ considered a rollback on the Bitcoin blockchain as a viable solution to return the lost funds to investors. Though this didn’t go through, the fact that a rollback is possible proves to us that Bitcoin is not safe from 51% attack and can be hacked.
Cryptocurrencies may replace Fiat currencies
Of the 2308+ altcoins and tokens in the crypto market, there are several competing for mainstream adoption. From XRP, which is used to settle outward remittance to TRX that has the fastest transaction processing times, cryptocurrencies have most features of fiat currencies and more, they may replace fiat completely in the future.
You can store your wealth anonymously in crypto
Cryptocurrencies offer anonymity, especially XMR and DASH, coins that are focused and centered around anonymity and user privacy. This makes them an alternative store of wealth and the go-to option for private transactions and non-cash remittance.
Craig Wright is not the inventor of Bitcoin
Bitcoin’s inventor is a mystery to the world and goes by the name of Satoshi Nakamoto. While there has been speculation and investigation into the creator or anonymous creators of Bitcoin, Craig Wright, who claims to be him, could never rightfully establish his identity and the claim he made in 2016 was subsequently proven false.
Bitcoin worth $71 Million is locked away in wallets
James Howell threw out the hard disk containing the private key to his Bitcoin wallet and lost 7500 Bitcoins, worth $71 Million at press time. Losing access to the private key is equivalent to losing claim to the digital asset. It is an estimation that nearly 25% of Bitcoins have been lost in this manner.
Bitcoin cannot be banned in the USA
There are claims that a ban on using Bitcoin is a ban on civil liberties. Code is speech and is protected by the First Amendment in the USA. Despite the US President’s tweet about Bitcoin and the Congress’s thoughts on cryptocurrencies, popular opinion is that Bitcoin cannot be banned in the USA.
Cryptocurrencies are banking the unbanked
To get started with cryptocurrencies, all that a user needs is a wallet and access to the internet. Accessing an exchange enables users to convert fiat to cryptocurrency. The wallet is used to store, send, and receive cryptocurrency. Hardware wallets are used for storing private key to cryptocurrencies and software wallets run on an app or other device.
FBI has Bitcoin
The Federal Bureau of Investigation owns one of the largest Bitcoin wallets, acquiring their assets by seizing those involved with an illegal activity using crypto. The wallet is worth $120 Million. While the creators of Bitcoin still have more of it than others, the FBI still has a relatively high number of Bitcoins.
The First Bitcoin was used to buy Pizza
The first time Bitcoin was used, was to buy Pizza, in 2010. Laslo Hanyecz used it to purchase two Pizzas for 10000 BTC, the equivalent of $95.5 Million. That was really expensive pizza, not then, since Bitcoin has an ROI of over 7525% since its launch.
While cryptocurrencies continue to gain popularity, they remain in limited supply. While the risk of buying and holding cryptocurrencies is high, high risk is the equivalent of higher returns in the case of crypto. Blockchain technology continues to explode and the use of cryptocurrency will only increase in the coming years.
