TOP 10 Bitcoin Facts That Everyone Should Know

3 years ago

The Creator of Bitcoin is Unidentified

Satoshi Nakamoto is an unknown genius who has created the first cryptocurrency. After the launch of Bitcoin, he assembled a team of developers with whom he communicated strictly online. And in December 2010, he voluntarily handed over all project materials to the team, never appearing online afterwards.

There are many theories surrounding the identity of Satoshi. The most recent one is an idea that Satoshi is Charlie Lee, the creator of Litecoin cryptocurrency. The theory goes that Bitcoin was allegedly a trial version of its advanced successor - Litecoin.

In other directions, some consider Elon Musk to be the mastermind behind Satoshi. He knows well the coding language of C++, which was used to write Bitcoin. He also likes to solve non-standard global issues. It would also explain how Satoshi doesn’t spend his Bitcoins - because he already has a lot of money.

Meanwhile, back in twenty sixteen, Craig Steven Wright, a businessman and a scientist, publicly identified himself as Satoshi Nakamoto. Initially, many believed his statement, but when the skepticists demanded a solid proof, Mr. Craig couldn’t deliver it, despite not abandoning his claim.

And the most incredible theory is that Satoshi Nakamoto is an artificial intelligence made by aliens. Not many details here.

Bitcoins are Obtained by Mining

Unlike the normal money that is emissioned by governments, Bitcoins are not printed, but are rather mined. Computers around the whole world conduct complicated calculations to process transactions in the Bitcoin network. In doing so, these computers are rewarded with new coins. At the dawn of cryptocurrencies, Bitcoins could have been mined with a home computer, but today it’s a huge industry with dedicated hardware and giant mining farms that can fit the size of a factory.

Bitcoin Price is Growing

During the last three years, the Bitcoin Price has increased fiftyfold - it went from $200 to $10 000. The current world record for the highest price was set on December 17, 2017, for it was $20 000 - and this is far from the limits.

More and More Electricity is Required to Mine Bitcoins

At this point, Bitcoin mining consumes more electricity than a country of Ireland. Meanwhile, the mining requirements steadily grow, and according to the preliminary estimations, mining Bitcoin will require electricity consumption equal to the consumption of the United States.

The Value of Bitcoin is Measured by its Limited Quantity

According to the plan of Bitcoin founder, the total sum of all Bitcoins will be limited to 21M coins. As of now, there are 17M Bitcoins available for mining, around more than 80%. However, this process constantly slows down. That’s why 99% of all bitcoins will be mined approximately in the year of 2040. And to end the emission, it would take 100 years more. Thus, the last coin will be mined no sooner than 2140.

Losses and Unnecessary Spending of Bitcoin

In the history of the first cryptocurrency there are many instances when its owners pointlessly spent or lost their Bitcoins without realizing their value. Take the story of an Englishman for example, James Howells became famous for his decision to throw away a hard drive filled with Bitcoins equal to $75M by today's price rate. He tried to find the drive on a city junkyard several times, but to no avail.

And what about Laszlo Hanyecz who bought 2 pizzas over the Internet in 2010 with his 10 000 Bitcoins that could have costed $100M today. As Lazlo puts it, he doesn't regret his decision as he went down in history as the first person who has completed the purchase with a cryptocurrency. Since then, the May 22nd is widely celebrated by the cryptocommunity as the Pizza Day.

Unlucky Transactions

It is impossible to cancel a transaction in the Bitcoin network, and quite many users have lost their money by indicating the wrong receiver. Just like that, one of the Reddit users accidently gifted $800 Bitcoins to the already bankrupted crypto stock exchange called Mount Gox, simply by specifying wrong receiver from his contact list.

Another story involves a user who on December 17th, 2013 mixed up the input field of the transaction amount with a commision field, paying all his 80 Bitcoins as a commission for processing the transaction.

Gold Vs Bitcoin

On March 3rd, 2017, the price of Bitcoin exceeded $1277, hence overshadowing the price of gold ounce. Since then, the price of gold has increased only by fifty dollars, whereas Bitcoin price rose by more than ten thousand dollars. Now, the first cryptocurrency is called a digital gold. Even more so, many companies include Bitcoin in their investment portfolios.

What Can be Purchased with Bitcoins

Today, one can afford practically everything with cryptocurrency from Lamborghini to a private strip dance in a Las Vegas bar. And in some countries such as United Kingdom, United States, and United Arab Emirates, real estate can be sold with Bitcoins. Also, pretty soon you will be able to pay with Bitcoins to fly into space with a help of Virgin Group company, it’s only a matter of time before they finish developing the necessary rocket.

Bitcoin and Governments

Nowadays, each country is looking for their approach to cryptocurrencies, and it’s worth noting Japan and China specifically. Japan has adopted the assimilation program and it was the first country to acknowledge Bitcoin as a legitimate paying unit. The country set more than 10 000 functioning selling points that accept the cryptocurrency.

On the opposite side, in two thousand seventeen, China restricted any Bitcoin trade, declaring internal and external crypto markets to be outlawed.