There are many Bitcoin facts that you should know. Ever since it’s origin people have been a bit paranoid about this digital currency. However with time slowly people have accepted this advanced form of currency and have started investing in it.
- Top Bitcoin Facts you Should Know
- Conclusion on Bitcoin Facts
If you have followed Bitcoin closely, you must have known that the world has got quite a few Bitcoin Billionaires now. What makes Bitcoin a centre of attraction is the fact that it is a volatile currency. It is unpredictable and it makes people earn a huge profit. Nevertheless, there are many other Bitcoin facts you should take into consideration.
However, no matter how much-renowned Bitcoin has become but there is a lot of mystery surrounding it and I am sure that most of the people are unaware of it. So, I thought that why not for you guys, I should make a list of crazy Bitcoin facts.
So, let’s began with our list of Bitcoin facts!
Top Bitcoin Facts you Should Know
Here are some of the most interesting Bitcoin facts that one should know if dealing with cryptocurrency markets:
Bitcoin has no fixed or inherent value
Just like we believe that US Dollar or a Euro is worth a certain amount say 1 USD or 1 Euro because it is written on a piece of paper that we consider as a dollar or Euro. In the very same way, Bitcoin has a value just because we say that it does and we are trading and investing in it so much. Bitcoin is just some digital code that we are giving value by trading it for goods and services.
The popularity of Bitcoin is directly related to its popularity. The more the popularity of Bitcoin increases, the more its value can increase.
Remember that one of the most important Bitcoin facts is that there are only 21 million BTC. No more Bitcoin will be issued. Yet, that’s not a problem for Bitcoin millionaires to gain wealth. Thus, the price is going to be fluctuating according to supply and demand. While demand gets higher over time due to various Bitcoin price factors, the new issuance of Bitcoin falls every 4 years. This could create a situation where the price of Bitcoin could grow massively.
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What Do we know about Transparency?
Transparency of Bitcoin keeps it tick. Bitcoin is very open to its users about transactions and amounts, not personal data. Anyone can easily access the public ledger of Bitcoin which is called the Bitcoin blockchain. The Bitcoin blockchain keeps the record of every transaction and anyone can see it on the internet. This feature creates a sense of security and trust among Bitcoin users.
Many times, people wish to make payments anonymously. But this can’t be possible with the Bitcoin currency. Every transaction made with the Bitcoin currency gets publicly stored and stays over the network forever. In simple words, one must know that anyone can easily look for someone’s Bitcoin balance and even learn about the transactions too. Though, a Bitcoin user’s identity is not revealed under the address. The ones who wish to make
anonymous transactions must be clear about this fact before entering into the Bitcoin market. As a Bitcoin user, one needs to take effective steps in protecting privacy and maintaining the security.
If you want to make anonymous transactions, the best thing to do is to use other virtual currencies. Monero (XMR) is one of the largest and most private virtual currencies in the world.
You can mine Bitcoins
Yes, you heard it right. You can mine Bitcoin. This was a process that could be done in the past by only sitting in front of a computer. However, things became somehow more complicated now. There are many Bitcoin facts, but knowing you can mine this virtual currency may be one of the most interesting ones.
Many traders around the world use computer software programs to solve various mathematical problems to verify various Bitcoin transactions around the world. In return, they get a certain amount of Bitcoin as a reward.
Nowadays, mining takes place in large Bitcoin mining farms. As you can see in the image below, to mine Bitcoin profitably you need a lot of computing power. Thus, mining Bitcoin at home is somehow more complicated today than it was in the past.
This is because a larger number of companies are now mining Bitcoin. As more miners enter the market, more difficult it becomes to get BTC. Remember there are only 21 million BTC.
You can buy Bitcoins
If you want to obtain Bitcoins, then you must know about the most trusted and reliable places. For buying or selling Bitcoins using other currencies, it is best to rely upon the cryptocurrency or Bitcoin exchanges. One who is dealing in Bitcoins for a long time must be aware of the cryptocurrency wallet. It is just an easily usable wallet available for BTC users. For obtaining Bitcoins, it is best to rely upon the well-known and reputable exchanges.
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When talking about BTC security, it is not anything distinct from the banking institution which uses your details or password. Also, the BTC wallet can be secured using a private key. With the notable exchanges available for cryptocurrency, one can obtain reliable dealings. Bitcoin has also never been hacked. This should be considered one of the most valuable Bitcoin facts.
One must be careful while using some of the platforms available for BTC exchanges because hackers keep a close eye over your transactions. With a single mistake, you can fail to access the Bitcoins. For example, there are many popular social media Bitcoin scams that are only looking for ways to drain your coins out of your wallet.
Cheaper and rapid process
Sending money across the border is never easy with fiat currency. Banks charge a huge amount of fees. Not just that, the bank process is quite slow and it takes 4 to 5 working days before the money is transferred. Whereas the transaction process of the borders is much cheaper and quicker with Bitcoin. It takes just a matter of a few minutes for the transaction and the fee is very little to nothing.
If you are processing an international transfer, Bitcoin would allow you to do so in minutes. Moreover, fees are going to be quite small, as we mentioned before. This is great for large transfers and also for sending and receiving small amounts of money.
Interestingly, the whole process does not depend on a centralized authority approving the transfer. You can send your funds in a decentralized manner using Bitcoin. This is among the most important Bitcoin facts. You can be sure your transfer will be processed faster and for fewer fees.
BTC works with a digital wallet
You store your Bitcoins in a secure cryptocurrency wallet. This wallet works like a physical wallet but the difference is that it is online. It works in a similar way to a bank account. With a Bitcoin wallet, you can hold, send and receive BTC. Take into consideration that Bitcoin wallets must follow higher security standards.
In real life, you always keep your wallet secured as much as possible. With the Bitcoin, one can easily transfer the currency from anywhere to any address in a convenient way. Also, one can control the transfer of Bitcoin money to some extent.
But one must be cautious about securing a Bitcoin wallet, or else the hackers are waiting for you to make a single mistake. One must be aware that the Bitcoin wallet’s security is in the owner’s hand. So, one must take all the precautions to secure a Bitcoin wallet from any security threat.
Finally, once a Bitcoin wallet is lost, it is very hard to revive the wallet or get your Immediate Bitcoin back. This is why you should always keep your seed phrase in a safe place. This is one of the most important Bitcoin facts: you are your own bank.
You can pay in Bitcoins
Bitcoin may just sound like fancy trading equipment and of no real use. Y0u will be shocked to know that there are many stores and outlets that accept Bitcoin as a mode of payment. Famous brands like Rolex, Microsoft, Newegg, Dell, Reeds Jewelers and some even local pizza places in the United States accept Bitcoin as a mode of payment.
Other countries have also a large number of shops accepting Bitcoin payments. You can see the map of places accepting Bitcoin all over the world. You can also check which countries are the largest Bitcoin hodlers. Take into consideration that other shops online are also accepting Bitcoin and other cryptocurrencies.
Volatility in bitcoin pricing
Volatility is one of the important Bitcoin facts an investor must know. In a short period, one can’t decide whether the Bitcoin price will rise or go down in the market. The changes in bitcoin price depend upon the economy and some other factors. In the unpredictable Bitcoin market conditions, the price remains volatile.
If you’re planning to make your savings transformed into Bitcoin, you can approach the option to get a Bitcoin savings account. Yet you must analyze your decision. It is because your only savings can be decreased with a decrease in Bitcoin prices. Bitcoin is just like an asset that is associated with a high risk. If you can’t afford to lose your savings, then you must not make them transformed into Bitcoins. Even if the price remains the same for a longer period, it is not certain that it would be the same in the future too.
The Bitcoin price was able to reach $20,000 in December 2017. In early 2017, Bitcoin was traded just below $1k. This shows the massive bull run experienced by this virtual currency. Other Bitcoin facts include that the digital currency fell to $3,200 a year later. This shows the volatility in Bitcoin pricing and how this cryptocurrency fluctuates.
Another crazy Bitcoin facts include Bitcoin transactions being non-reversible. If the person who receives the payment refunds it, then only one can get the refunded currency. Otherwise, there is no way to get back the transacted currency while using Bitcoin. It means that one needs to pay close attention while making payments to the businesses. Don’t indulge in business with the people who can’t be trusted or have a poor record.
Using the Bitcoin currency can be safe as it finds out the typos and restrict them from sending any currency amount to an address that is not existing or invalid. This is also considered as a beneficial thing associated with Bitcoin. Though one can’t make any transaction reversed, so it is important to be alert at the very moment while making transactions.
Technology linked with Bitcoin currency
Do you want to know the technology which is linked with Bitcoin? Are you curious to find out the technology on which Bitcoin currency operates? If so, then you can get your answer here, in this Bitcoin facts section.
Bitcoin is generally linked with the blockchain technology. Many people might have heard about the blockchain technology before. But the ones who aren’t aware of it can learn now. Blockchain is described as “public transaction storage which gets shared over a global consensus with the maintenance among the Bitcoin users.”
Many times, people are confused about the purpose or usage of such a technology in the Bitcoin network. With the blockchain technology, the main purpose is to secure all the network transactions from any double bitcoin spending and prove undisputable.
Among different sectors and industries, blockchain technology can be used in several ways. For instance, it can be used in the real estate market to ensure fractional ownership and the industry operating for energy can use it to trade for P2P (peer-to-peer) energy. Did you know these blockchain and Bitcoin facts.
Is it beneficial to use Bitcoin for investment purposes?
Everyone knows about the volatile nature of Bitcoin. Seeing such a nature, one can define Bitcoin’s price as a speculative one. Also, the market for Bitcoin stands too unregulated. Yet, that wasn’t a big problem for a number of Bitcoin celebrities to get invested in the biggest cryptocurrency in the world.
Anyone who is stepping into the Bitcoin market for investment purposes must know that the risk is always present. Even with the record, one can’t define the future status of Bitcoin’s price or value. Every user must be able to invest in Bitcoins at their own risk. No one can be held liable for any loss in the Bitcoin investments.
The most eye-catching benefit linked with Bitcoins in transactions is that it is easily transferable from anywhere all over the globe. Also, one can easily withdraw Bitcoins using any exchange irrespective of the location. With this list of Bitcoin facts, you should analyse whether Bitcoin could be used for investment purposes. We are not financial advisors and these Bitcoin facts should be considered for educational purposes only.
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Conclusion on Bitcoin Facts
The bitcoin market is unpredictable, and one can’t step into it without obtaining proper knowledge. However, in this guide of Bitcoin facts, we shared with you very important things. Bitcoin is a transparent, fast, cheap, reliable and volatile cryptocurrency. Although these were not all the Bitcoin facts, we are sure this list has helped you to understand the digital currency.
Feel free to tell us more Bitcoin facts you’d like to know or things we should add to this list. We aim at sharing with you the most valuable information about Bitcoin as possible.