By now, you have probably heard about Bitcoin, the first cryptocurrency ever. Nonetheless, the facts surrounding this cryptocurrency are still astonishing. For starters, it introduced us to a world where financial transactions do not need to rely on central institutions to control them. People can now hold funds in digital currencies and transact with their peers with full control.
While this currency continues to penetrate the world, people are educating themselves so as to stay informed. For those just starting out, here are 5 fascinating facts about Bitcoin that will surprise you.
Bitcoin was launched in 2009 by an individual or team going by the pseudonym Satoshi Nakamoto. After that, the founder(s) essentially disappeared from the Internet. While a few people claim to be Satoshi, there has never been anyone who could prove they were the founder. To this day, people are still searching for the mysterious founder(s). Speculations on who the founder might be range from highly possible to borderline crazy. As it stands, it seems like the founder left us Bitcoin to utilize as we see fit. Today, you can trade crypto online using a plethora of forex brokers and cryptocurrency exchanges.
Now that we have talked about the mystery of the founder of Bitcoin, let's talk about his Bitcoins. Well, the belief is that Satoshi Nakamoto owns approximately 1 million Bitcoins. This is approximately equal to $30 billion. Releasing these Bitcoins back to the market would definitely tank the market significantly. While that is a possibility, many experts believe that the founder of Bitcoin would not do that. This is because they look at the founder's missions and conclude that it would not make sense for them to tank the market.
Further, Satoshi's Bitcoins are not the only ones that are essentially lost. There are hundreds of thousands of wallets that went dormant a long time ago. Many people simply forgot their passwords and can no longer access their wallets. Unfortunately, others died without sharing their keys with family members or friends. As such, there are tons of Bitcoin wallets that are inaccessible to the public. The total number of Bitcoins lost in the world currently stands at approximately 20%. Worse, the number continues to grow as more and more wallets end up inaccessible.
When Satoshi launched Bitcoin, they already set the total number of Bitcoins that can ever exist at 21 million. This is in an attempt to make the cryptocurrency deflationary in Nature. As more money comes into the Bitcoin market, the more its value rises since it has a limited supply. Additionally, the mining rewards on the Bitcoin network are halved every four years. As such, the last Bitcoin mining reward will be in 2140.
It is very crucial that we highlight Bitcoin's volatility. This cryptocurrency is one of the most volatile assets on the market today. While its prices can be relatively steady for a given period of time, sharp spikes and dips are a common thing in the cryptocurrency space. Notably, this volatility is a double-edged sword. Many traders take advantage of the volatility to buy Bitcoin when its price is low, hold it, and sell it when the price rises.
Nailing a prediction can be the determinant between making some money and losing out. People use many techniques to predict the movement of Bitcoin in the market. Traders can use a combination of technical analysis and expert advisors to make Bitcoin's forecast for this year. Falling within the right range can be the difference between earning profits and losing out.
Speaking of earning profits, Bitcoin is responsible for turning a significant number of people into millionaires. Over the years, Bitcoin's surge in price during bull runs has made people significant returns to secure millionaire status. An example is the Winklevoss brothers who are some of the most famous Bitcoin millionaires in the world. Particularly, they were some of the earliest investors in Bitcoin and reaped greatly when prices rose. Today, there are a total of over 32,000 Bitcoin millionaires in the world. While this sounds tantalizing, remember that Bitcoin's volatility can lead to great losses too.
Bitcoin's popularity continues to grow in the world. Today, there are many businesses that accept this digital currency as a legal tender. Even more interesting, the country of El Salvadore recognizes Bitcoin as a legal tender within its boundaries. Even so, there are still fascinating facts that continue to surprise people, especially those who have no idea what Bitcoin is. Its limited supply makes it a deflationary asset. Still, this cryptocurrency has one of the most volatile price charts. This volatility is a double-edged sword that can lead to great losses or great profits at the same time.
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