Bitcoin is a digital currency and an innovative payment network and a new kind of money. In this article, you will know seven (7) Interesting bitcoin facts you should know earlier before trading.
1. The Sender/Recipient Details are Hidden
Bitcoin addresses are a long string consisting of 34 alphanumeric characters. If you only use this address, you have no way of knowing who the recipient is.
This is one of the main reasons why Bitcoin is a preferred method for making illegal transactions, therefore, be careful not to fall for scams. A good place to start is by understanding the smart ways to detect cryptocurrency & ICO scams.
Most wallet programs also assign each user a wallet ID, which is used as a username to further protect the privacy of the sender/recipient.
2. Bitcoin cannot be banned
There have been several policies surrounding the use of Bitcoin. Also, there have been big talks about banning it. One of the reasons for this is that it does not align with the routine financial system which the government is familiar with. However, based on how digital currency is programmed to work it can only be regulated not banned.
Funds can be transferred to anyone anywhere in the world requiring just your internet connection.
A lot of governments like the Japanese and Australian governments are already working to integrate digital currency into their fundamental financial system.
3. You can use Bitcoin to Buy Things!
Bitcoin and other cryptocurrencies are widely used on the black market due to their anonymity. Note, however, that it’s not only used on the black market. Dell, Microsoft, Expedia, Overstock.com, and other large companies all accept Bitcoin as a legitimate payment.
Over time, more and more places will likely allow Bitcoin to be used and even offer Bitcoin payments. There are even now African countries which you can spend crypto.
While many people have been drawn to cryptocurrency trading for the purpose of making money fast, it is widely recognized that paying for products and services is widely recognized.
4. Bitcoin Generates a Lot of Energy
Bitcoin mining is big business and requires enormous computer processing power. Various estimates of the amount of Co2 consumed correspond to around one million transatlantic flights or the equivalent of the energy tax of the Republic of Ireland, New Zealand, Hungary, or Peru.
If bitcoin all miners were in a single country, they would rank 61st globally in terms of energy consumption. It has been said that around 2.5 million people could be powered by bitcoin mining, and this is something we need to consider in the future.
5. Not the Only One to Watch
Bitcoin is not the only cyber currency, although it remains the most highly rated. Bitcoin gets almost all the media coverage, but there are so many cryptocurrencies to choose from these days if you are interested in investing and trading.
There are currently over 2,500 cryptocurrencies in total.
Ethereum, for example, is another popular cryptocurrency that was crowdfunded and released in 2014.
6. One Bitcoin Unit is Called a “Satoshi Byte.”
Just like dollars can be divided into cents and pounds into pence, Bitcoin also has its own denominations, but they are much smaller. Named after the mysterious inventor of cryptocurrency, 1 byte Satoshi is worth 0.00000001 Bitcoin, a small amount!
7. If you Lose your Private Key (Bitcoin wallet), you will Lose your Bitcoins
You store your Bitcoins in a digital wallet. You can log in and check your balance. However, one thing is that you have to be very careful where you store your password and key so that you can access your Bitcoin digital wallet. If you lose this access, you will lose access to your Bitcoin wallet and the amount contained in it.
About 20% of all Bitcoin supplies are believed to be “lost,” mainly due to lost or stolen keys or discarded laptops or computers.
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