10 INTERESTING FACTS ABOUT CRYPTOCURRENCY
Written by Eva Ciga from https://www.aretosystems.com
The cryptocurrency market is still at its juvenile stage yet it has offered one of the most amazing ecosystems in the financial revolution. It’s barely a decade since the digital cash hit the financial markets but everyone is already talking about it. The intrigues are mesmerizing to study with many exciting aspects that will blow your mind.
Cryptocurrency? This is a simple term known to many, but after that, only a few grasp the intricacy of this currency regarded as the money of the future. The vast majority of professionals remain clueless about the minutiae of the cryptomarkets and so is the general audience. You have probably heard about Bitcoin (BTC), Etherium, Litecoin, and many more, we’ll not delve into differences or similarities of these varieties. They are all cryptocurrencies that feature the same functional processes.
The crypto world presents lots of fun and here are the 10 most interesting facts to know about cryptocurrency.
- The founder is anonymous
Although the idea of digital currencies was realized decades ago, cryptocurrencies were conceptualized about three decades ago. However, the real code for cryptocurrencies was developed and actualized in 2009. The most surprising fact about cryptocurrency is that no one has come out to claim its creation. The mysterious professional or group of people behind the pseudonym Satoshi Nakamoto remain anonymous, despite being held responsible for the creation of this enthralling digital cash.
The funniest part is that Nakamoto never intended to invent Cryptocurrency. His original idea was to come up with a decentralized cash system. Thus, the emergence of the digital cash traces no real roots as even Nakamoto doesn’t claim the proprietorship of the code. However, Satoshi Nakamoto is claimed to own more than one billion BTC units. The ecosystem is open for people to ‘mine’ and enjoys the commissions and rewards.
- There are over 1500 cryptocurrencies
Did you know there are over 1500 cryptocurrencies? Actually, the number of cryptocurrencies as of 10/04/2018 was over 1565 and the number is still growing. Many people confine the cryptocurrency market to the most popular varieties including Bitcoin, Etherium, Ripple, and Lietcoin. However, the market is significantly more complex and more industries have adopted the cryptocurrency idea to create industry-specific cryptocurrencies.
Bitcoin (BTC) owns the largest blockchain technology and currently, it commands 54% of the total projected market value. Besides, there are over 12 other cryptocurrencies that enjoy over $1 Billion market capitalization. This is helped by the fact that creating a new cryptocurrency is easy and as the market continues to attract more stakeholders we can only expect the number to grow exponentially.
- FBI holds the largest BTC wallet
The Federal Bureau of Investigation popularly known as the FBI owns one of the largest Bitcoin wallets. A Bitcoin wallet is an innovative software program used to store Bitcoins to ensure technical accuracy. It a security that offers a private key or secret number for all the bitcoin address stored. The wallet facilitates Bitcoin transactions (sending and receiving Bitcoins). There are different types of Bitcoin wallet which include mobile, web-based, and on-premise systems. The aforementioned American intelligence department owns an estimated value of $120 of Bitcoin
- 10,000BTC for two pizzas?
When it comes to Cryptocurrency, there are many tales of success and woe out there. One of the most unbelievable stories regarding cryptocurrency and more specifically Bitcoin happened on May 22, 2010. On this fateful day, a Hungarian developer; Laszlo Hanyecz paid 10,000 Bitcoins for two large pizzas.
10000 for two pizzas? Let’s explore this unique transaction! Back then August 23rd, 2010 the value of one Bitcoin was estimated at $0.06, therefore Hanyecz paid approximately $300 for each pizza and was totally unfazed by the transaction. Fast forward, May 28th, 2018, the value of one Bitcoin is estimated at $7105. Now let’s all spare a moment and think about the magnitude of Hanyecz transaction in the present day scenario. To put into simple terms Hanyecz would have spent over 35million dollars to purchase one pizza.
Hanyecz even documented the message he posted on Bitcoin Talk forum to mark the first real-world cryptocurrency transaction. The transaction shows the growing interest in Bitcoin and cryptocurrency in general. It clearly exhibits the volatility of cryptocurrencies over the years and above all it shows that cryptocurrencies are going rocket as more and more investors adopt the idea.
- Bitcoin is limited
Initially, it was thought that Bitcoin is inexhaustible. Contrary to this belief, Bitcoin is limited and the fact that it’s digitally mined doesn’t make it inestimable. The final figure of Bitcoin; after all the coins are mined is 21 million units. The last unit is estimated to be mined in 2140, and after that, no new coins will be available for mining. In addition, Bitcoin has a predetermined scheduled for its mining. More than 80% of the 21 million bitcoin units is already mined and only less than 4.5 Million units are left. This, coupled with the energy-intensive mining process means it’s getting harder to mine Bitcoins with each passing hour.
- Bitcoin transactions are irreversible and difficult to trace
The blockchain technology has made it easy to store and transact using cryptocurrencies. All cryptocurrency/Bitcoin transactions that happen can be viewed in Blockchain without any hassle. This makes them transparent and allows individuals to view every detail of the process.
However, Bitcoin transactions are difficult to trace. For this reason, this cryptocurrency is famed for the dark web transactions. Many illegal transactions involving items such as narcotics, weapons, and contrabands are made in cryptocurrencies. The transactions leave no evidence and the involved parties remain anonymous to each other.
Another interesting fact about cryptocurrencies is that the transactions are irreversible. For this reason, it’s always wise to spend carefully when using these digital currencies on your blockchain account. Ensure the value of Bitcoin you want to send to the merchant is correctly decimated before clicking the send button.
- The thing about Satoshi
Did you know that a cryptocurrency can be broken into small units? For instance, Bitcoin can be divided into fractions to make it easy for buyers to transact. These alternative bitcoin units are known as millibitcoin or Satoshi. Satoshi is the tiniest bitcoin value which is equal to a hundredth million of one unit or 0.00000001 bitcoin.
- There are over 6 million wallets
The growing reputation of cryptocurrency has prompted the increase in the number of wallets. It’s estimated the online hyperspace has over 6 million wallets each created with unique features. The wallets allow cryptocurrency user to link them to major credit cards to streamline and simplify transactions. Some of the wallets allow users to send cryptocurrencies via email or text messages. Better still, most of the cryptocurrency allow the holder to store multiple cryptocurrencies in one wallet.
- Decentralization is attractive
One question still lingers, why do we need another form of currency yet digital transactions techniques already exist? However, the world is changing with every passing day, and the decentralized nature of cryptocurrency is too interesting to resist. Decentralization means cryptocurrencies are not regulated by any government.
Better still, decentralization means there is no central location where data is stored. The lack of a centralized data center provides an assurance that cryptocurrency cannot be a target of cybercriminals. This top-grade security makes cryptocurrencies more interesting to investors and provides the reliability required to transact in the complex business world.
- The first cryptocurrency transaction
January 12th, 2009 will remain inscribed in years to come as the day when the first nonmined bitcoin transaction took place. On this day, Satoshi Nakamoto sent approximately 10 bitcoins units to Hal Finney to test the strength of the network. It has been determined that both entities took part in the first cryptocurrency transaction on a Bitcoin network that never came from a Block reward. The accomplishment of this transaction inspired Satoshi and Hal to further improve the protocol and client of the Bitcoin network.
Hal was passionate about digital currencies and cryptography. During his lifetime he met We Dai and Nick Szabo, two of the greatest minds in the cryptocurrency world. It’s believed that meeting these great personalities inspired Hal to indulge in cryptocurrency mining and was amongst the first people to acquire the software once it became available. In 2009, Hal and Satoshi started mining together and continued testing the strength of the BTC client.
Ever since that day, the Bitcoin network has recorded exponential growth and has gradually evolved to become a robust peer-to-peer payment system. The BTC protocol has grown infinitely into a system that benchmarks the mainstream cryptocurrency trend right now. in addition, the number of transaction has risen steadily even as the BTC network continue to expand.
The evolution of cryptocurrency is showing no signs of cooling off. With each passing day, new information and use of the digital currency emerge. The entire ecosystem is recording unprecedented growth with unique aids for the financial market and its stakeholders. New coins continue to emerge and we can only expect the industry to get more thought-provoking to watch.