7 Interesting Bitcoin Facts That Every Bitcoin Investor Should Know
Are you thinking of investing in Bitcoins? You are certainly not alone in that case; the entire world appears to be showing a willingness to find out how the cryptocurrency works and whether it is lucrative to invest in this asset. Bitcoins made its debut a decade back and since then is has been making much headway; however, mainstream adoption of the Bitcoin is still pending.
Bitcoin is essentially a decentralized digital currency that makes use of cryptographic techniques for verifying fund transfers through a blockchain. Transactions in Bitcoin are not regulated by any middlemen or third parties; all transfers are anonymous and the costs of transactions are also far lower than traditional money transfer services. Here are some interesting things that you should know about the Bitcoin before you put your money in it:
- To begin with, Bitcoin transfers are private and anonymous. There are no third parties involved and this makes Bitcoin transactions more secure than any other transaction. Moreover, you do not have to pay cuts for every transfer as you need to when credit card companies or banks are involved.
- The blockchain is decentralized and there is no central database that can be hacked. For transactions to be intercepted, every node or computer in the blockchain will have to be also hacked simultaneously and this needs a huge amount of power that makes it most unlikely.
- Bitcoin had been started by Satoshi Nakamoto but his identity remains a mystery. Today however, the Bitcoin is very successful and traders deploy a wide range of strategies to make more money through Bitcoin trades. Trading bots are now being used to improve the chances of making successful trades and to ensure that trading can continue even when traders are sleeping. However, there are website owners trying to divert huge traffic to their sites using celebrities’ names next to the trader apps like Jovanotti bitcoin trader, which you have to be aware of. They are mostly fake.
- The first recorded transaction in Bitcoins was when a Florida developer purchased two pizzas with 10,000 BTC. Strangely enough, following the first purchase, Bitcoins came to be used for buying illicit products and illegal weapons. It emerged as the go-to currency for all criminals and the Dark Web flourished. It had been built on the Tor Network and allowed anonymous surfing and transfers which made it a favorite for notorious activities. But, currently Bitcoins are being used for buying online goods and services; retailers like Overstock.com and Dish Network are accepting Bitcoin payments.
- If you wish to buy Bitcoins you will need a digital wallet. This can be mobile wallet, desktop wallet, or online wallet. It is best to opt for cold storage or offline wallets that are protected by both private and public keys. You must not store your coins on an exchange because exchanges are prone to getting hacked. Hardware wallets are risky because in case you forget your private keys, the coins will be lost forever.
- When you make Bitcoin transfers, your public address stays visible to all even if the identity of the sender or recipient is not exposed. The blockchain is a public ledger and anyone can see the amount of Bitcoins that have been transferred. This is why the FBI could seize the Silk Road owner.
- Bitcoin has a finite supply; there will only be a total of 21 million. So far about 16.3 Bitcoins have been mined and the last of the Bitcoins will be mined by 2140.