10 Interesting Facts about Bitcoin
June 21, 2021 - How-To Articles
Bitcoin is one of the defining inventions of the past two decades.
Mind you, this is amid the most technologically advanced era humanity has ever experienced.
There are tons of details about cryptocurrencies. Naturally, some are more salient than others. Your knowledge could range anywhere from that of a casual enthusiast to a skilled developer. There is always something to learn and something going on in this fascinating space.
Here are some of the more fascinating facts about Bitcoin:
- The Mystery Founder
Bitcoin founder Satoshi Nakamoto is an elusive figure.
Twelve years down the line, little is known about this mysterious entity. Satoshi was active for approximately two years after launching Bitcoin before disappearing into the wind.
Interestingly, the mystery founder still owns than 1 million Bitcoins. At current prices, this would make Satoshi, a billionaire.
Nonetheless, it may be for a greater good that Nakamoto removed himself from active participation in running the Bitcoin blockchain.
This move allowed the network to have a genuinely decentralized aesthetic because having such an influential face to the project would put Nakamoto in a position of considerable power.
- Bitcoin Is Not Under the Control of Any State
Several countries are still pondering what to do with the cryptocurrency industry.
The reason for this puzzle is one- they don’t have control over this asset. Besides, it doubles up as a currency that is a direct challenge to fiat currencies.
It is impossible to ban Bitcoin unilaterally. Indeed, a country can heavily regulate Bitcoin. However, one government cannot ban Bitcoin worldwide because it operates in a decentralized virtual space.
This quality makes Bitcoin popular. It is not part of traditional finance and has organic growth, which has happened without government support.
There is no government printing the life out of Bitcoins. Instead, new Bitcoins enter into circulation through a process called mining.
Advanced Mining resells equipment for Bitcoin mining, which are specialized computers with high processing power.
These computers operate as a network of nodes that preserve the integrity of transaction history by achieving consensus.
- Limited Number of Coins
This quality separates Bitcoin from pretty much every other crypto.
Satoshi Nakamoto limited the Bitcoin supply to 21 million.
Most of this supply is already in circulation.
Regardless, the remaining Bitcoin will gradually ease into circulation for close to two decades as difficulty increases.
At the moment, miners earn 6.25 Bitcoins as block rewards in successfully mining a block of Bitcoin transactions.
The scarcity has turned out to be a blessing in disguise.
Bitcoin has a definite presence as a store-of-value asset.
Many investors now consider it an alternative to equity investments. It may be more volatile than gold, but one Bitcoin is exponentially more valuable than an ounce of gold.
- May 22nd is Bitcoin Pizza day
America has the Fourth of July; Bitcoin has May 22nd.
This date attained this status in 2010 when Lazlo Hanyecz purchased two pizzas with 10,000 Bitcoin.
It marked the first-ever Bitcoin transaction because it was the first time someone recognized the value of Bitcoin as a currency for payment.
Well, 2 pizzas for 10,000 BTC sounds like an epic “had I known” story.
However, Lazlo is a software developer who isn’t too bummed out about his unwitting historic moment.
He might just have earned himself a footnote in history, which is much more than most people can.
- Bitcoin Is Divisible
The beauty of Bitcoin is that it is digital. Accordingly, a single Bitcoin is divisible into smaller decimal units that add up to one Bitcoin.
What better name to give these smaller units? Name it after the mysterious legend, of course!
That is how the smallest units of Bitcoin got the name Satoshi.
They are what cents are to regular currencies. Given that only 21 million Bitcoins exist, the units will continue to be necessary, especially if Bitcoins become significantly more valuable.
- The Tale of Lost Coins
The fact that no centralized entity controls Bitcoin is a double-edged sword.
It is up to individuals to control the private keys and passwords to their Bitcoin.
Unfortunately, some haven’t had luck on their side.
Estimates place the amount of “lost Bitcoins” at 3.79 million.
These are primarily people who mined Bitcoin early on without realizing its future potential.
The most unfortunate example is James Howell, who accidentally threw away his hard drive containing private keys to hundreds of millions of dollars worth of Bitcoin by today’s prices. That drive may be lost forever.
- The FBI Holds a Considerable Stash
So much for the government having nothing to do with Bitcoin.
In fact, The FBI has a sizable Bitcoin stash. In 2013, the agency seized over 144,000 Bitcoins from the Silk Road marketplace.
This marketplace reportedly facilitated illicit activity like counterfeit sales and drug trafficking.
Nonetheless, it doesn’t change the fact that these coins went into the FBI’s hands.
The agency has made several other lower-profile seizures and could be one of the largest Bitcoin hodlers today.
- You Can Use Bitcoin for Purchases
To most people, Bitcoin is relevant for its speculative value.
That said, Bitcoin also serves its currency aspect pretty well. Many like it because it operates outside mainstream finance channels.
A person can use Bitcoin to make purchases in various retail entities. It is not the preserve of the black market as some would want to paint it.
Increasingly, corporations accept Bitcoin. Notable ones include Dell, Microsoft, Expedia, Subway, and Overstock.com. Bitcoin can also facilitate remittances to developing countries.
Bitcoin’s store of value aspect is probably the most appealing. Regardless, it is achieving more mainstream recognition as a way to pay for products and services every day.
- Bitcoin Is Pseudonymous, Not Fully Anonymous
This fact is another one that gets mixed up.
The Bitcoin blockchain is public and transparent.
Anyone can look up your Bitcoin address and know how much Bitcoin an address holds.
The best you can do is use a different name.
However, you can’t transact in a truly anonymous fashion on the Bitcoin blockchain. There are rival blockchains like Monero that emphasize complete anonymity.
- You Have To Account For Bitcoin on Your Taxes
Bitcoin operates as an alternative financial system.
That doesn’t mean that Uncle Sam is uninvolved. The U.S. considers Bitcoin as property for purposes of taxation.
This fact means that Bitcoin users have to account for profits and pay capital gains taxes. The good news is, Bitcoin mining can be used to legally reduce tax obligations, relieving tax payers.
Legislation differs in countries, but most are beginning to regulate Bitcoin in one form or another.
Advanced Mining Is a Notable Stakeholder in Bitcoin Mining
These facts reveal more about a dynamic and exciting invention.
At Advanced Mining, we share this belief in this asset class.
Accordingly, we decided to get involved in a vital aspect of the Bitcoin ecosystem: mining.
We have a direct line to the best Bitcoin mining equipment manufacturer in the world; Bitmain. Advanced Mining resells state-of-the-art mining equipment to prospective miners seeking to enter the industry.
Additionally, we are experienced enough to know the logistics of Bitcoin mining. Mining solo at home is just about impractical.
The Bitcoin mining rigs consume electricity at a considerable rate and require constant cooling.
We have set up elaborate data centers in cool areas of North America to make use of natural cooling and cheap renewable power. These variables make a noticeable difference in the viability of any Bitcoin mining operation.