Facts About Bitcoin You Need To Know

Bitcoin has only been around a short amount of time after being created back in 2009, a lot of people are still confused by the new phenomenon which is Bitcoin. This article lets you know about some important and interesting facts about Bitcoin you need to know. There are a lot of rumours which circulate daily about Bitcoin, causing people to question whether or not the founding pioneer cryptocurrency is actually as revolutionary as everyone makes out. However, these facts about Bitcoin are 100% true and cannot be argued with.

Facts about Bitcoin you need to know:

The creator is unknown

Founded back in 2009, the creator of Bitcoin is a pseudonym known as Satoshi Nakamoto. To this day the mystery man, woman or group behind the famous pseudonym Satoshi Nakamoto still remains a mystery. There is some speculation about who Satoshi Nakamoto but this has never been confirmed, and may well never be revealed. To see some of the famous Satoshi Nakamoto conspiracy theories, click here

The total supply of Bitcoin is limited

Similar to fiat money, unfortunately Bitcoin does not grow on trees. Bitcoin is produced through a process called mining, in which computers from all around the world solve complex algorithms in order to validate transactions within blocks. Once a block is fully validated a block reward is produced which is distributed between the ‘miners’. This block reward is a fixed number of Bitcoins which reduces every 210,000 blocks (approximately, every 4 years).

This therefore is how new Bitcoins are produced. There is however a limit to the number of Bitcoins which can exist… and this number is 21,000,000 (21 Million). This fixed number of Bitcoins is designed to increase scarcity and to act as a way to limit supply and therefore increase demand over time.

Bitcoin has never been hacked

One of the main misconceptions with Bitcoin is that it has been hacked, this is understandable as there have been countless stories about exchanges being hacked as well as the way people who do not understand the technology speak about Bitcoin.

In all past cases where people have had their Bitcoin stolen this has been due to some form of hack (generally an exchange) but not the actual Bitcoin network itself. To understand this concept you must understand how an exchange works. When you store your Bitcoin on an exchange you are storing your Bitcoins along with potentially millions of other users within that exchange. This creates a stockpile of Bitcoin within that exchange and can be a potential magnet for hackers to try to steal. You are effectively as secure as the exchange is, although, you can takes steps to increase your own security within these exchanges. Alternatively, you withdraw your Bitcoins from an exchange and store them on a paper wallet or storage wallet like a Trezor or Ledger.

Facts about Bitcoin you need to know:

The first Bitcoin purchase was pizza

On May 22nd 2010, the first purchase using Bitcoins was made. And believe it or not, the purchase was two pizza’s from Papa John’s. The overall cost came to 10,000 Bitcoin’s which at the time equated to just $25, and is worth considerably more in todays market. May 22nd is now known as Bitcoin Pizza Day.

There is a LOT of companies which accept Bitcoin

Contrary to popular belief that Bitcoin cannot be used, there is actually a growing number of companies whom are currently accepting Bitcoin. This number can only get larger but here is some examples of companies who currently accept Bitcoin as a payment method.

And many more companies currently exist who accept Bitcoin. To see the full list click here

 

 

 

 

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By | 2018-03-13T12:30:16+00:00 March 13th, 2018|News|0 Comments

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