Bitcoin has revolutionized the cryptocurrency market with an emergent rise. The ‘money of internet’ has gained popularity since the past decade, and is still an international sensation that has been a major factor for the evolution of technology. People are actively investing in Bitcoin and are using it for daily transactions, as well.
As we are living in the digital era, we are gradually appreciating and promoting the concept behind Bitcoin, as it empowers us with control over our money. The evolution of Bitcoin is taking place, and as we are moving ahead in time, we can witness that people are showing interest in cryptography.
What is Bitcoin?
Bitcoin is a cryptocurrency, which works as a decentralized digital currency. A central bank or an administrator does not manage the currency; in fact, it can be transferred by the user to the user on the bitcoin network. Bitcoin was initially introduced in 2008 by an unknown source or a group of people, under the name of Satoshi Nakamoto.
Is Bitcoin Legal?
Different countries vary with the legal status of Bitcoin. The majority of the countries have not declared Bitcoin as a legal currency, while some of the states are using Bitcoin for trading, investment, and daily purchasing.
Advantages of Bitcoin
- Bitcoin can be transferred from peer-to-peer without any involvement of the third party. You can send and receive bitcoins at any time. You can have complete control over your money.
- Bitcoin transactions don’t require any of your personal data, which makes the process secure and reliable.
- Bitcoin doesn’t charge you any fee. Your Bitcoin wallet allows you to control and manage the fee to pay when it comes to spending.
- Bitcoin is cryptographically secure, and thus, no individual or organization has the right to control or manipulate the protocol of Bitcoin.
Disadvantages of Bitcoin
- You might face a degree of acceptance because many people aren’t still aware of the concept of Bitcoin.
- Unpredictability is one of the significant disadvantages that you might face while dealing with Bitcoins. Even the smallest trades or activities can affect the price because the total value of bitcoins is in continuous circulation.
- The process of Bitcoin acceptance is still on-going. Most of the businesses that deal with Bitcoin are still not mature; and, thus, don’t offer any insurance.
Check out the massive collection of cyberpunk 2077 jacket on Michael Jackson Costume, and gear up yourself in an attire that you have desired for since long. Whether you have been dealing with Bitcoin, or are new to this cryptocurrency – there are specific facts that you must know about Bitcoin. The top five facts are listed below that you don’t know about Bitcoin, have a look:
1. The originator of Bitcoin is still unknown
On 31st of October 2008, a 9-page white paper was sent to a cryptographic mailing list by Satoshi Nakamoto. The paper consisted of a pseudonym of Bitcoin and was published as an open-source code, which made it open for all (people could read it, use it and even fork it). The people whom the white paper was sent to, believed in the concept of bitcoin and decentralization; thus, it came into being.
The matter of fact which attracted people towards the idea was the electronic cash transfer from peer-to-peer. In 2010, Satoshi Nakamoto dropped out of the project and vanished. His identity isn’t known to people. We don’t even know whether he has been an individual behind this idea or is there a group of people. People are investing in a currency who isn’t owned by an authority. It has been more than ten years, and still, the true identity of the originator of Bitcoin is unknown, which surely makes this cryptocurrency hideous.
2. Bitcoins are finite
Bitcoin cannot be used forever. Yes, you heard it right. Bitcoin has a limited supply of 21 million, only. As bitcoin mining is a digital process to create Bitcoin, the mining would end with a total of 21 million. Real money, the paper money, comes into being when the Government decides to print it. Unlike real money, Bitcoin doesn’t have a centralized government. Thus, bitcoin mining is the process that creates this cryptocurrency.
The mining process takes place when miners use special software to solve mathematical problems digitally and, thus, are provided with a certain number of bitcoins in exchange. Once you solve a problem, the rewards come with a block of coins, where each block consists of about 12.5 bitcoins. Currently, about 17.3 million bitcoins are in circulation, and the last bitcoin is expected to be mined by 2140.
3. Bitcoins first-ever purchase was of a Pizza
The 22nd of May was the day when the first real-world bitcoin transaction took place! A programmer from Florida, named Laszlo Hanyecz, made a purchase of 10,000 bitcoins for two pizzas from Papa John’s Pizza. This was the first recorded purchase of trading bitcoin for actual goods.
Back then, 10,000 bitcoins were about $41. Thus, the crypto-enthusiasts celebrate Bitcoin Pizza Day on the 22nd of May.
4. Bitcoin is consuming way more electricity than you can imagine
Even if you are a miner yourself, this is a fact that you might not even know. Bitcoin mining is the process where the miners solve mathematical problems, and in reward for solving each problem, the miner is given a block of coins. The process of mining requires lots and lots of energy. In fact, it wouldn’t be wrong to say that Bitcoin mining is killing the environment and is consuming more electricity than 159 countries!
To mine a single Bitcoin, the transaction takes enough energy that could power up to three houses. You might even not be aware of how much energy consumption is required to generate a block of coins in a go. If you are about to use your computer to mine Bitcoins, then get ready to receive a quite massive electricity bill. You might even want to rethink because, at times, you can’t cover the cost of electricity with the number of bitcoins you mine. Therefore, think wisely before getting into the process of mining.
5. Lose your private key, and all your Bitcoins are gone
As Bitcoin is a digital currency and is not managed by a centralized government or a traditional bank, you can lose all your bitcoins if you lose your private key. Bitcoins are stored in the Bitcoin wallet which is digitally accessible. The wallet is highly secure. The Bitcoin transactions are made by using a public key and a private key. As it is a cryptocurrency, if you lose your private key, which is eventually the link that enables you to get hold onto the Bitcoin wallet securely, you will lose your entire.
None other can use your Bitcoin wallet until and unless you give it to them. Back in 2013, an IT worker James Howells lost his private key, which led him to lose 7,500 Bitcoins, which was worth $48 million! Thus, you might want to keep your private key safe.
The market of cryptocurrency is young and is in continuous evolution. Thus the facts mentioned above are essential to be known. People are showing their interest in investing and trading Bitcoins, and acquire the knowledge of how it works and what are the limitations along with the drawbacks. We are sure that even if you have been dealing with Bitcoins, you wouldn’t have known the above-listed facts.