The revolutionary invention of the bitcoins in 2008 was met with rather doubt a apprehension at first. The concept of a digital currency sounded fraudulent, insecure and mysterious. However, 11 years since its inception, bitcoin has steadily gained popularity and acceptance among the people and investors.
Bitcoins have several applications ranging from investment activities to the cryptocurrency transactions. Despite this increasing prevalence of investment in the bitcoins, a vast proportion of the investors still show doubt and hesitation whilst investing in the BTC. This hesitation can be attributed to the lack of awareness regarding the bitcoins among the investors.
This article serves the purpose of revealing several different interesting facts regarding the bitcoins to create a global awareness for the investors. Take a look at our top 8 facts about bitcoins below:
- Bitcoin’s inventor remains a mystery
In spite of numerous efforts, even after 11 years of its creation, the inventor of the bitcoin network remains unrevealed.Bitcoin first appeared in a research paper published in 2008. Soon after mining the major proportion of the bitcoins, it is claimed that a Japanese coder, Satoshi Nakamoto, who claimed to be the mastermind behind this system, left the network. He has not been traced ever since his disappearance.Although bitcoins have improved in value over the time, the disappearance of its creator has created a doubt of fraud and scam in the investors. Some investors, e.g. identified it as the ‘Ponzi Scheme’.However, this inexistence of the creator benefits the decentralized characteristic of this network. Excited to learn more about bitcoin’s Inventor’s mystery? visit bitcoin prime app
2. Bitcoins are both – Untraceable & Traceable
In the Bitcoin Network, a bitcoin owner’s own identity is not revealed in the transactions, but instead, a public address for that transaction is created.
All the transactions of bitcoins are stored in a publicly accessible ledger known as the blockchain. However, to get to know a person’s account details and credentials, one must know their public address to access their bitcoin information. Having said that, there is another method which makes the tracing an account even more complicated – using a VPN. Its use can modify the users IP Address and therefore makes tracing anybody’s bitcoin activity difficult. It should be known, however, that it makes tracing difficult but not impossible. For example, despite the prevalent use of Virtual Private Networks to modify public addresses, the FBI was still able to catch and arrest the owner of the Silk Road Network.
3. Bitcoins are limited – 21 Million Only
Unlike the fiat currencies, which can be produced and circulated constantly, bitcoins have a limited total amount. A total of 21 million bitcoins can be mined and owned collectively. As of September 2020, approximately 18.5 million bitcoins have already been mined. Bitcoins will be mined up till the year 2140 only.
4. Bitcoins can be used to pay as well
Although bitcoins are usually added in the investment portfolio as a long term investment, it can be used to purchase things as well, given that the store or the specific company gives a choice of BTC payment.The first ever purchase using bitcoins took place back in 2010, when an individual bought two pizzas from Papa John’s for 10,000 bitcoins (which is equivalent to roughly $107 million. Imagine paying $107 million for just two pizzas!Soon after this occurrence, several other places started accepting bitcoin payments as well, e.g. Tesla and Starbucks etcetera. Although this sounds pretty convenient, forecasts of the trends in bitcoin’s value suggests otherwise – keep bitcoins as a long term asset.
5. Ban on Bitcoins is Not Possible
The absence of a regulatory or administrative authority in the bitcoin network attracts various criminals. Due to the cross-influence of the decentralized bitcoins and presence of criminals, the bitcoin system forces authorities in countries to place a ban on it.
The Network Design, however, does not allow any authority to place a ban on the system altogether, but may or may not allow regulation. All that is required is a bitcoin wallet and an operational internet connection, and a person can immediately begin investing in bitcoins.
6. Private Key is as Important as BTC Itself
The private key associated with your bitcoin account is the most important thing. If lost, it gives complete access and ownership of the bitcoins to the new owner. An example comes from a tech guy, James Howells lost who lost 7,500 bitcoins during 2013. His private key was accessed by another individual who got hands on the private key.
Currently, the value of 7,500 BTC is almost $19.4 million.
If a person loses their private key, and nobody else finds it, the bitcoins will be permanently wasted. Therefore, it is essentially important to keep the private key safe and secure.
Several cryptocurrencies have emerged over the time; however, bitcoin has been consistently on the top. It is, therefore, very imminent that the core reason for doubt and hesitation while investing in bitcoin is the lack of awareness about its benefits. It is vital to know about the bitcoins, way before making the decision of buying them. Also, effective management of bitcoins as an investment portfolio also immensely improves the chances of great profits for the investor.
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