10 Facts About Cryptocurrency That You Might Not Know
A cryptocurrency is an asset that was created to work as a medium of exchange using cryptography. Cryptocurrencies are usually decentralized, and these currencies operate on an online database known as “blockchain.”
There has been more talk about cryptocurrencies as a result of global recognition and countries wishing to gain an advantage in cryptocurrencies. Over time, more and more investors are showing interest in cryptocurrencies, and now it is impossible to ignore the fact that they are trying to make money by investing in digital currencies.
After all, perhaps one day this currency will completely replace fiat money.
In this article, we present 10 interesting things you should know about cryptocurrency.
The best crypto wallets are here.
10 facts about cryptocurrencies
#1 The creator of bitcoin is unknown
No one knows who created bitcoin – the real developer of this revolutionary technology has not revealed himself. Bitcoin has appeared in the world in 2009 and is still very popular among people around the world.
If you’ve heard of Satoshi Nakamoto, you should know that this is just a pseudonym created to address the anonymous person behind bitcoin.
Some people in the crypto space believe that there is not one person behind the creation of Bitcoin, but a group of founders.
Moreover, since such an outstanding technology cannot be created without expensive machines and computers, it is said that Satoshi Nakamoto must be a very rich man who has billions of bitcoins.
#2 Cryptocurrency mining = high power consumption
As you may know, a lot of electricity is spent on obtaining crypto coins. According to the latest data, one bitcoin transaction requires 2.3 megawatt-hours. For comparison, 100,000 transactions on the Visa network consumes just 149 kilowatt-hours. One MW equals 1,000 kW. It turns out that 100,000 transactions in the Visa system are equal to 0.149 megawatts, and this is 15.44 times less than one bitcoin transaction.
The numbers are impressive, and if you count one transaction at a time, then not everyone has enough mathematical ability to add it up. However, there are coins that are more economical in consumption than BTC.
By the way, the total bitcoin network consumes more energy than, for example, the Netherlands or Argentina. And these are not the smallest and most underdeveloped countries.
How to buy bitcoin anonymously. Learn more here.
#3 You can track someone’s wallet with cryptocurrency
As you know, cryptocurrencies are tracked and every transaction becomes publicly available. This means that you can check someone’s transaction, track its details, and much more. You just need a wallet address, a transaction ID, or a person’s name, and then search the blockchain.
At the same time, all previous and recent wallet transactions are displayed. Who sent bitcoins to whom, how many were sent, how many commissions were paid – everything is public.
This is the reason that there are very few chances of fraud, and if you are interested in making dark purchases with cryptocurrency, you should think twice about it.
The best crypto coin that hides the name of its owner – Crypton. Read more here.
#4 The cost of bitcoins has increased by 838,000,000% in 10 years
Who would have thought that a virtual currency, which was once created to combat the inefficiency of the traditional financial order, could become a hedging tool in the world and a popular economic commodity?
Since we got acquainted with bitcoins in 2009, the world’s main cryptocurrency has gone on a wonderful journey. If you look at the price of bitcoin 10 years ago, for just $5 you could get about 5,000 BTC, as recorded in the first transaction.
Saifedean Ammous, the author of The Bitcoin Standard, noted that the price of bitcoin has actually increased by 838,078,685% as of today.
#5 There are more than 6,000 cryptocurrencies
If you are new to the crypto space, you may only know about some of them, such as Bitcoin, Ethereum, etc. However, at the moment there are more than 6,000 cryptocurrencies registered on CoinMarketCap. This does not mean that you can invest in all of them, because at the moment it is worth investing in only a few hundred.
If you ever think about investing in cryptocurrency, invest your money only in the top 200 assets. Moreover, you should not put all your money in one basket (asset), but rather invest in several at once. Who knows which one will rise in price and which one will collapse?
A survey that was conducted on cryptocurrencies in the United States showed that many people are still in the dark. A large percentage of them did not know whether cryptocurrencies were legal or not and a smaller percentage believed that this was the case. In addition, many people only claimed to know the most popular cryptocurrency, Bitcoin, but did not know about other coins, such as Altcoin or Ethereum.
The best coins to mine in 2022 are here.
#6 Not all bitcoins are involved in the turnover
Only a third of the existing coins actively participate in the turnover. The remaining ones are inactive.
Experts believe that most of the non-working bitcoins are simply lost, and may be forgotten by their owners. Consultants note that the system is designed in such a way that if you lose the password from the bitcoin wallet, recreating it is not feasible.
#7 Cryptocurrencies are extremely unstable
Numerous external factors significantly affect the price of cryptocurrencies, as in the traditional stock market. Prices are very volatile, you need to rely a lot on your analysis and trading intuition.
Prices can fluctuate greatly, which sometimes works for you, and sometimes against you. People often avoid cryptocurrencies because of this high risk.
#8 A man once bought two pizzas for 10,000 BTC
This is the funniest story and the most amazing fact about cryptocurrency that you will probably ever hear.
Laszlo Hanyecz, a Hungarian developer, sold 10,000 BTC for two pizzas in August 2010. At that time, the cost of bitcoin was about $0.06, but if we calculate the cost of 10,000 BTC now … Wow!
By now he would be a millionaire. But, if you watch Laszlo Hanyecz’s interview about this pizza deal, you’ll find that he has no regrets at all. He did it intentionally and is proud to be a part of bitcoin history.
This was the first time that someone used digital money to buy real goods, and it could be one of the reasons why digital currencies can really be used for online and offline purchases.
#9 You can buy less than 0.00000001 BTC
If you think that bitcoin is unavailable, then you are mistaken. Who said you need to buy the whole thing when you can buy just 0.00000001 BTC?
The unit of 0.00000001 BTC is known as one satoshi. This means that one bitcoin is equal to 100,000,000 satoshis. So, buy as many satoshis as possible and use them for long-term investments or day trading to make a profit.
#10 China is the epicenter of crypto mining
In cryptocurrency, mining is the process of verifying cryptocurrency transactions before they are included in the blockchain. At one time, more than 75% of the mining network was located in China. This was due to cheap sources of electricity in China, which had the largest number of crypto-mining farms in the world.
But as we know, the latter is no longer a fact, after China began to impose restrictions and prohibitions, squeezing some miners out of the country, and forcing others to get rid of equipment and stop mining.
Read more about China’s restrictions here.
Please note that cryptocurrencies are a very speculative sphere. It may seem that becoming a bitcoin millionaire overnight is appealing, but the opposite may happen. Several investors have invested millions of dollars in this sector and have completely lost their money.
In this article, we have reviewed the 10 most important things that you should know if you are new to cryptocurrency and are not sure whether it is worth investing in cryptocurrency.
Investing in this sector involves risk. Never forget, when making investments, always invest only as much money as you can lose. This is the golden rule, especially for investing in cryptocurrency.