Interesting Facts About Bitcoin
You’re reading this article because you’ve most likely heard people talking about Bitcoin. The cryptocurrency is now the most popular the world over. Satoshi Nakamoto created it back in 2009 in a mystical manner. Bitcoin does not function like traditional online payment methods. Instead, it works as an electronic currency and a payment system. Bitcoin transactions attract low fees.
Governments issue their traditional currencies and regulate their flow via fiscal policies. That means governments have the authority to balance fiat money’s structure. What’s more, traditional money has a centralized system via which they access it. On the other hand, Bitcoin is different because it’s a centralized virtual currency. That means no government or central bank can control it. What’s more, people can mine Bitcoin or use platforms like the CFD Trader to purchase it with fiat money.
As its popularity increases, more people are getting interested in Bitcoin. And some want to learn more about Bitcoin before trading, investing, or using Bitcoin. Here are the interesting critical facts to know about Bitcoin.
Bitcoin Has A Total Limited Amount
Perhaps, you’re thinking there’s no reason to rush into purchasing this digital currency. Well, you should think again. That’s because the total Bitcoin amount has a limit of 21 million units. Perhaps, this explains Bitcoin’s ever-increasing value. The Bitcoin mining process leads to the introduction of new tokens. Bitcoin mining involves solving complex math problems and earning new tokens as a reward. As such, Bitcoin’s value depends on supply and demand. When Bitcoin supply reduces, its demand increases, and this increases its value. Thus, as miners draw closer to the 21 million tokens’ mark, the value of this virtual currency will continue to rise. Therefore, this could be the best time to purchase this electronic currency.
Bitcoin Creator Is Unknown
In Greek, the term “crypto” means “private or hidden.” And the use of this term has multiple or numerous benefits since the entity’s identity that created it is unknown. People have tried searching for Bitcoin creators on different technical platforms with no success. Nobody knows the person or company behind Bitcoin. While people associate Satoshi Nakamoto with Bitcoin, their identity is unknown.
Nobody Can Physically Ban Bitcoin
Some countries have planned and discussed the idea of banning Bitcoin and other virtual currencies. That’s because they don’t want Bitcoin to affect their economic conditions. Unfortunately, Bitcoin doesn’t exist in the physical form. This electronic currency is only available online, and this makes banning it almost impossible. As long as a person has the internet and a digital wallet, they can purchase this virtual currency, trade it, and use it to pay for goods and services. What’s more, people can use Bitcoin at any time without involving banks and other government agencies.
China Leads In Bitcoin Mining
Over 70% of cryptocurrency mining happens in China. Cryptocurrency mining entails verifying the transactions that people complete using digital money. Upon verification, blockchain records the transaction in a public ledger. This ledger holds the data of Bitcoin transactions, and nobody can tamper with this information. What’s more, Bitcoin users can access this information at any time and from any place globally.
Bitcoin Is Taxable
Depending on your country of residence, you can pay tax when using Bitcoin. Currently, Bitcoin is playing a crucial role in the global market. And tax authorities are slowly learning about its use in the business community. Consequently, some countries are imposing a tax on Bitcoin as a trade commodity.
Bitcoin’s popularity has snowballed the world over. And the number of individuals trading this virtual currency online keeps rising. Also, more merchants now accept Bitcoin payments for goods and services. Thus, Bitcoin could eventually become a global currency.
This article has been scheduled in accordance with Socialnomics’ disclosure policy.