In the last few years, there has been an increased demand for bitcoin and other cryptocurrencies. The surge of internet around cryptocurrencies like bitcoin is due to plenty of reasons why bitcoin brew in the 20th century. People who are new to cryptocurrencies want to gain knowledge about the bitcoin and crypto community. With less knowledge, one cannot conquer the bitcoin community.
Bitcoin is the digital cryptocurrency platform that has attracted people across the world. Still, there are some things that you do not know or have knowledge about. Even the investors or traders who deal in bitcoin daily may not know some facts. If you are looking for a trading platform, search Trend Catcher; they allow the traders to achieve financial freedom. Let us move forward and explore some unknown facts about the cryptocurrency that is based on blockchain.
In 2009, a mysterious programmer that may be an individual or a group of individuals named Satoshi Nakamoto introduced the bitcoin network on white paper. In mid-2010, he suddenly vanished from the internet and left the entire network in the bitcoin community's hands. Nobody has heard from Satoshi since 2010, and no one even knows whether he is alive or dead.
People have estimated that his bitcoin wallet holds more than 980,000 bitcoins. This much bitcoins makes him the richest man.
Satoshi builds the bitcoin network and introduced blockchain technology to the world, and therefore, as a gesture of respect, the smallest unit of bitcoin was given the name satoshi. To circulate bitcoin more across the globe, the value of satoshi is very low, which around 0.00005 U.S. dollars is. This means that one hundred million satoshis collectively make one bitcoin. Its community judges the value of bitcoin by considering the demand and supply of it. Bitcoin's value fluctuates a lot, and therefore one must invest by knowing financial analysis.
No private key means no bitcoins.
A bitcoin wallet has two main keys, which are the public key and private key. The private key is used to send bitcoins, and the public key is used to receive bitcoins. If a bitcoin wallet user loses his bitcoin address or says the private key, he is not concluded as the owner of bitcoins. Losing the private key means you lose all your bitcoins.
Studies and researches have been done; it shows that about 60% of bitcoin addresses are unknown or ghosts, which means 60% of people have lost their bitcoin addresses and lose access to their bitcoins.
A finite number of bitcoins
Bitcoins are limited or finite in number, and this is the most common fact that is unknown to a huge number of people. There are only 21 million bitcoins in the market, and out of them, around 18 million bitcoins are in circulation. The miners estimate that by 2140 the bitcoin mining is to be done.
The miners who solve the complicated mathematical algorithms to verify the bitcoin transactions are rewarded with bitcoins. Every four years, the bitcoin reward decreases by half the amount of bitcoins.
Ban of Bitcoin
Bitcoin is a decentralized cryptocurrency, which means it doesn't involve governments or banks, and this is why governments of some countries don't accept bitcoins. Countries like Iceland, Ecuador, Bangladesh, and Bolivia have completed banned bitcoins. Some countries like America and Canada have accepted bitcoin wholeheartedly, while countries like Iran, Thailand, and India have suggested residents to use cryptocurrencies at their own risk.
When bitcoins are mined, miners consider the power consumption as profit can only be estimated if your expenses are less. Ireland is the second populated country that consumes less power than other bitcoin mining farms across the globe. Ireland is known to consume 5,000 kW hours of electricity in a year, whereas the bitcoin mining farms consume 60-terawatt hours of electricity.
The whole process of mining bitcoin includes many expenses, and therefore it is an expensive process. The miners are required to invest electricity, money, and time. The process of mining bitcoins necessitates servers, and the data must be processed faster to add the block into the blockchain to earn the reward of bitcoin. It is crucial to have the high processing power of your computers.