Bitcoin

7 facts about bitcoins you probably didn’t know about

Written by: Coinpedia

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Coinpedia

Crypto Journalist and Editor of guest articles in CoinPedia. I am also handling Outreach & Partnerships Manager. Contact me: [email protected]

    Aug 22, 2021

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    Bitcoins are a form of cryptocurrency that has gained immense popularity in recent times.

    Although initially considered to be a currency to exchange in selling or buying products on the dark web, the outlook has changed much in the current scenario.

    No Government acknowledges this as a valid form of monetary transaction, yet Bitcoins have appeared in the stock market scenario and are doing quite well.

    One is required to be very well educated on how cryptocurrency works to invest or mine for Bitcoins.

    In this article, we will explore the facts about cryptocurrency and Bitcoins that are unknown to most people at large.

    Here are the 7 facts about Bitcoins you probably didn’t know about:

    1. Bitcoins are limited to access:

    Yes, Bitcoins are limited. The creator of cryptocurrency made only 21 million Bitcoins. Currently, 16 million Bitcoins are in circulation.

    But more and more are being mined every day as its popularity is increasing and people have started considering it as a valid platform to invest in because of its convex nature of gaining returns.

    2. The Bitcoin Pizza Day:

    May 22nd is known to be Bitcoin Pizza day. The reason is interesting- a programmer named Laszlo Hanyecz from Florida had bought two Papa John’s pizzas by trading 10,000 Bitcoins.

    This was the first-ever purchase done using Bitcoins. During this time 10,000 Bitcoins amounted to 41 dollars, which now values around 64 million dollars.

    Due to its high return value, more and more people are getting interested to invest in the same.

    3. Bitcoin transactions are irreversible:

    Bank transfers can be tracked and reversed if required. But in the case of Bitcoins, it is not possible.

    Therefore it is important to check and double-check the address you are sending your cryptocurrency fund to. 

    Cryptocurrency transactions cannot be tracked or retracted, hence it is very important to safeguard your internet connection to avoid possible frauds or thefts.

    4. The denominations of Bitcoins are known as ‘Satoshi Bytes’:

    Dollars are divided into cents, rupees can be divided into paisa. Similarly, Bitcoins can be divided into Satoshi Bytes.

    1 Satoshi Byes is 0.00000001 Bitcoin. This unit of division of Bitcoins is named after the person who invented Cryptocurrency.

    Satoshi Nakamoto is credited for the invention of cryptocurrency in 2009.

    But we do not know if it was a person with a pseudonym or a group of people who worked upon this idea of a new form of currency that has the potential to change the monetary scenario of the world.

    5. Bitcoins are not possible to ban:

    No Government in the world considers Bitcoins or cryptocurrency to be a viable form of monetary exchange.

    According to the law, it does not value anything. But the nature of Bitcoin transactions is such that the sender and receiver addresses will be hidden, making tracking of money almost impossible.

    For further reference, you can check Bitcoin Pro

    6. Bitcoin possession is accountable to tax evasion:

    The regulations regarding Bitcoins are still in formation, especially now when the usage of cryptocurrency is increasing so is the acceptance of it.

    But the US government has declared that any form of cryptocurrency is a capital asset of a person, and it must be accounted for in the tax payable.

    Although laws vary from country to country, it is important to go through the laws of a place before engaging in mining Bitcoins or transacting them to purchase goods.

    7. Bitcoins can be used to purchase products:

    Companies like Dell, Overstock, Microsoft, etc consider Bitcoins to be a viable payment option.

    It is false that Bitcoins and cryptocurrency are legitimate only on the dark web. Subway and KFC have started considering payment by Bitcoins as well.

    Conclusion:

    Bitcoins and their working system are interesting to know of. With passing time it is becoming more and more acceptable in the larger economic scenario of the world.

    But before investing make sure that you are well aware of its pros and cons. Hopefully, this article helped you build your knowledge upon the same.

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    Coinpedia

    Crypto Journalist and Editor of guest articles in CoinPedia. I am also handling Outreach & Partnerships Manager. Contact me: [email protected]

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