6 Interesting Facts that Every Bitcoin Investor Should Know6 Interesting Facts that Every Bitcoin Investor Should Know
You may be ready to dabble in the Bitcoin but do you know everything that you need to about this cryptocurrency? The truth is that investors often take a plunge into investments into a new asset before finding out much about it. You will be happy to come across the following facts that are worth knowing about the Bitcoin:
- Did you know, for instance, that the creator of this crypto is still a mystery? It is argued that the Bitcoin was launched in 2009 by Satoshi Nakamoto but no one knows for sure whether he is an individual or a group of individuals who should be credited with this discovery. The Bitcoin whitepaper had been published under Satoshi’s name but his identity remains unknown. Because of this uncertainty about its inventor, many looked at it as a Ponzi scheme. At the same time, since Bitcoin is a decentralized digital currency, this anonymity works in its favor.
- Bitcoin cannot be traced is an argument that is not entirely true. While Bitcoin transactions between parties remains confidential, the amount of Bitcoin transferred can be traced. The blockchain is a public ledger that is immutable and transparent; so, if people have your public address, they can easily view your transactions and the amount of Bitcoins you own. This is exactly how the FBI managed to stop the Silk Road incident. So, tracing Bitcoins can be hard but achievable.
- You must understand that you stand to lose all your money if you lose your private key or if the keys get stolen. This is because you cannot retrieve the funds you have in your wallet unless you have the key to access it. Reports suggest that almost 25% of Bitcoins had been lost in this way.
- Bitcoin has a finite supply; so there will only be 21 million Bitcoins and not any more. As of now, almost 18 million Bitcoins have been mined and the last one is likely to be exhausted by 2140. But this does not mean that there will be shortage of Bitcoins to mine. This is possible because of the way miners get rewarded. Every 4 years, the value of BTC is cut down by half. The last halving occurred in May 2020 after which the value has come down to 6.25 BTC. With the supply being finite the demands will go up and experts feel that Bitcoin prices will witness a parabolic rise as had happened after the previous halving.
- Bitcoin payments are being accepted by many big retailers as part of a trend towards mainstream Bitcoin adoption. Whether it is buying a pizza (the first purchase using Bitcoins was for a pizza), coffee at Starbucks, the Tesla car, hotel and flight ticket bookings, you can buy a wide range of things today with this crypto.
- While many nations have opened their doors to the Bitcoin, there are some countries like Iceland, Bolivia, and Ecuador that have banned its use. Countries like Iran and India have neither banned nor accepted cryptos. The very nature of the Bitcoin makes it a topic of controversy and the hostility towards can be explained by its working outside of the banking system. However, as an investor, you can be certain that Bitcoin cannot be banned per se, it can only be regulated.