#81 | 13 things you might not know about Bitcoin

13 things you might not know about Bitcoin

1. The Mysterious Creator

In 2009, a person or a group of people known as Satoshi Nakamoto introduced Bitcoin to the world. He (or they) vanished off the Internet in late 2010, and he hasn’t been heard from since. Just as his identity is still a mystery, nobody really knows if he’s even alive or dead. The only communication people had with him was through emails and forums.

His Bitcoin wallet holds around 980,000 bitcoins, which makes him one of the richest people on the planet.

2. The Satoshi

As a sign of respect for Bitcoin’s creator, the smallest unit of a bitcoin is known as a satoshi. To make one bitcoin, you need approximately one hundred million satoshis.

3. Bitcoin transactions cost almost nothing

PayPal and banks require their customers to pay transaction and other types of service fees. The good news is that Bitcoin transactions can be carried out free of charge because there’s no middleman! True, some exchanges charge a small fee, but this is simply to pay those who ‘mine’ Bitcoin and release it into the system.

4. Processing Power

The process of making or creating Bitcoin is called Bitcoin mining, which is expensive; you pay a lot in money, time, and electricity. Mining bitcoins requires servers used for that specific purpose. The faster you process the data, the faster the block can be added to the blockchain, and the faster you’re rewarded with bitcoins.

The whole process of Bitcoin mining demands huge electricity. If we calculate the monthly power consumption of the entire Bitcoin network, it will be more than the electricity that is consumed by the Republic of Ireland. 

5. Limited Number of Bitcoins

There’s a limit to how many bitcoins can exist in the market: 21 million. As of this moment, 18.5 million bitcoins are already in circulation; until 2140, we will still have bitcoins to mine. This is because of how miners are rewarded. Miners are rewarded with 12.5 bitcoins for each block added to the blockchain, and every four years the reward is reduced by half. 

6. Losing Bitcoins

Losing your Bitcoin address, which is also known as your private key, not only means losing your unique identification; it also means losing all the bitcoins in your digital wallet, which is where you store your Bitcoins. Research shows that at least 60 percent of all Bitcoin addresses are ghosts, which means a huge chunk of the people using Bitcoins have lost their addresses and have no way to access their wallets.

7. Liberland

In April 2015, a micronation between Croatia and Serbia known as Liberland was born. It was founded by a guy who is a politician, publicist, activist and president of Liberland. The official currency of Liberland is bitcoin. The government believes that Bitcoin and its underlying concepts of blockchain provide a secure and transparent method for recording electronic, financial, and physical assets.

8. You can’t ban Bitcoin

No law states that holding or trading Bitcoin is illegal. Many governments have tried to do so and failed. 

Bolivia, Vietnam, Bangladesh and Thailand, among others, have attempted to prevent cryptocurrency trading, citing threats to their financial systems. However, because of the nature of the system, it’s virtually impossible to ban altogether. It must be regulated instead. 

So, while Bitcoin trading and mining are illegal in several countries, it still occurs almost everywhere in the world.

9. You can use Bitcoin to purchase stuff

Bitcoin and other cryptocurrencies are frequently used on the black market due to their anonymity. However, note that it’s not just used on the black market. Dell, Microsoft, Expedia, Overstock.com and more big companies accept Bitcoin as a legitimate payment. Several other high street chains now accept Bitcoin payment, including Subway and KFC (in Canada), while Bitcoin has become increasingly popular in third world countries among people who don’t have access to traditional banks.

In time, more and more places will likely allow the use of Bitcoin and will even offer payment in Bitcoins.

While many people have been attracted to cryptocurrency trading as a way to make a fast buck, it has started to receive mainstream recognition as a way to pay for products and services. 

10. Bitcoin pizza day

Did you know that May 22nd is celebrated as Bitcoin Pizza Day?

On May 22, 2010, a programmer from Florida successfully traded 10,000 bitcoins for two pizzas. That was the first purchase done ever by using Bitcoins.

At that particular time, 10,000 Bitcoins were worth approximately about $41. 

Now, these 10,000 Bitcoins are worth around US$ 480 million. 

11.The Most Valuable Hard Drive

The number of Bitcoins is limited to 21 million. Among these, many Bitcoins are lost with years. In the year 2013, a British man threw his hard drive accidentally.

That hard drive had more than 75,000 Bitcoins that were mined over a period of four years. If we calculate the overall value price of those Bitcoins, it will be about US$ 3.6 billion.

12.Bitcoin Is Made of Thirty-one Thousands of Codes

On the 3rd January 2009, Satoshi Nakamoto had launched Bitcoin. This 36-year-old anonymous software coder had claimed that it took more than a year to write 31 thousand lines of code to develop this digital currency software.

For your information, 19 million Coding lines has made the entire operating system of Windows 2000. In every ten minutes or so, the Bitcoin software distributes coins.

13. FBI Owns the Fattest Bitcoin

Who has the biggest Bitcoin wallet in the whole world? This all-time question has no definite answer. There was a time when the FBI was the owner of most of the Bitcoins.

It was September 2013. The FBI had seized over 144,000 Bitcoins by shutting down the silk road online marketplace of drugs. As the current value price of Bitcoin is almost $50,000, the total amount is around US$ 7.2 billion at today’s rate.


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