Early this year, cryptocurrencies were valued at 1.3 trillion dollars, making them the assets with the best performance. The use of cryptocurrency has risen in the past decade and ranks among the top five most circulated currencies.
Its decentralized nature and independence from any government have had many doubting the profitability and even the currency’s legitimacy. The only difference between these people and those reaping profits from it is knowledge on the subject. Read about the latest Bitcoin News here!
Now, you have probably wondered how does Bitcoin work. The following interesting facts about Bitcoin will better inform your investment decision today.
1. Ghost Creator
Satoshi Nakamoto developed Bitcoin back in 2009. Nobody knows whether this was a pseudonym for one person or a group of people. In 2011, the creator disappeared from the internet, leaving behind only a few clues to his true identity.
Many people have claimed that they are the creator only to fail to back up their statement.
2. Bitcoin and the Federal Bureau of Investigation
Bitcoin is still recovering backlash for Silk Road, which was a black market for the cryptocurrency. You have probably heard politicians claiming that Bitcoin is only suitable for illegal activities, making many skeptical of it.
Despite its anonymity, the FBI managed to track it down and put an end to it. FBI seized all the Bitcoins in circulation from Silk Road, which totaled 1.5% of the Bitcoin supply.
3. Irreversible Transactions Is One of the Unique Facts About Bitcoin
Conventional methods of payment are easily tracked and reversed when necessary. Yet, the bitcoin currency is unique since once you have begun a transaction, it’s impossible to reverse it.
This feature may seem a bit harsh to the user, but it has eliminated the use of banks. Users cross-reference the number of funds and the addresses receiving the funds more than twice.
4. Lose Your Key, Lose Your Money
A private key is a digital wallet that holds your Bitcoin. Think of it as an account in which you can check for balance and perform other transactions.
However, losing your key and passwords cuts off your access to your bitcoin wallet. 20% of the Bitcoin chain is ‘lost’ due to misplaced keys and discarded computers.
5. No Banning of Bitcoin
Some governments like Vietnam, Thailand, Bolivia, and many others have tried to ban Bitcoin investments with no success. Legal bodies may threaten financial systems, but it’s almost impossible to ban Bitcoin due to its decentralized nature.
6. High Volatility
The bitcoin market experiences sudden changes in pricing. This provides better returns to investors when the value increases.
However, before investing in Bitcoin, check out https://www.bytefederal.com/the-smartest-short-term-investments-you-can-make-in-2021/ to understand better the factors affecting the market.
7. Bitcoin Is Taxable
Even though Bitcoin investments are independent of any government, most are finding it necessary to regulate its trading. The US considers cryptocurrency a financial asset, just like stocks and bonds. Accounting for bitcoins will help you evade tax problems.
Interesting Facts About Bitcoin
Investing in Bitcoin may be complex, but it is not complicated. Learning about the mechanisms of the currency and financial laws is essential for high returns.
The above facts about Bitcoin will make your investment journey easier. It’s only a matter of time before cryptocurrency becomes the only currency we use.
Learn more about this and similar topics on this website.