2017 was the year that the digital currency bitcoin officially became mainstream. Thanks to its impressive price rally throughout the year, which was extensively covered by global media, most people will have at least heard of bitcoin at this point in time. However, there are things about bitcoin that not everyone knows about. In this article, you will discover 12 facts about bitcoin that you were probably not aware of.
- The Inventor of Bitcoin is Unknown
“Satoshi Nakamoto” is the pseudonym that was used by bitcoin’s creator(s). The mysterious identity of the bitcoin creator(s) has led to a lot of speculation but no conclusive evidence of the identity has yet been published.
“Satoshi Nakamoto” is currently worth about $13 billion and is a nominee for a Nobel Prize in Economic Sciences. He last made a public post in 2011.
- No One Actually Controls Bitcoin
Bitcoin is not owned by any government or central bank and thereby gives its users the freedom to be their own bank. However, governments can declare the use of bitcoins illegal like countries such as Ecuador and Bangladesh have done. As a matter of fact, anyone caught using bitcoins in Bangladesh can earn themselves time in prison.
In light of this fact, some countries might ban bitcoin but users can still go about and buy and sell the digital currency regardless as governments cannot stop the decentralised peer-to-peer network that bitcoin is built on.
- Bitcoin Has a Limited Supply
There can only ever be 21 million bitcoins in circulation thanks to the way that bitcoin has been coded. The 21 million coin limit will be reached at around 2140. Currently, there are around 16,725,000 million bitcoins in circulation.
This limited total supply is one of the reasons why bitcoin has increased in value so much as it is a scarce asset.
There are over 20,000 Bitcoin Millionaires
According to Bitcoin Rich List, there are over 20,000 bitcoin millionaires. In fact, some millionaires have turned into billionaires. According to CNBC, Cameron and Tyler Winklevoss have become the first bitcoin billionaires thanks to the recent surge in the bitcoin price.Bitcoin is Actually Highly Transparent
The media often claim that bitcoin is anonymous but that is far from true. Bitcoin transactions can actually be very transparent.
“If I have all my bitcoins in a single address and keep reusing it, everyone I ever interact with can follow everything I do. This makes bitcoin the most transparent money system ever created,” said Marco Carnut, founder of CoinWISE, highlighting how transparent the bitcoin system can be when it is being used in a particular way.
Supercomputers Have Nothing on The Bitcoin Network
500 supercomputers combined are less powerful than the bitcoin network. Presently, the bitcoin network has a hash rate of over 14,867,776 TH/s, which is way more than the world’s most powerful supercomputer.The Bitcoin Network Uses More Energy Than Most African Countries
A report compiled by UK-based energy comparison platform, Power Compare, states that the power consumption from bitcoin mining is currently estimated at over 30 TWh per annum, which is more than that of 159 individual nations in Europe, Africa, and America.
In fact, only Algeria, Egypt and South Africa use up more power than the bitcoin blockchain.
Bitcoin Transactions Cannot Be Easily Refunded
Your bitcoin wallet is so precious that if you lose it, you could lose your coins forever (unless you have backed up your wallet!). What’s more, bitcoin transactions are non-refundable so if you make a mistake about the amount or the recipient wallet address that money is likely gone forever. Unless, of course, your counterpart is so friendly as to refund you the amount.You Can Live Solely on Bitcoin
Austin Craig and Beccy Bingham created a documentary called “life on bitcoin” to prove the statement: “man can live on bitcoins alone.”
The documentary illustrates that a married couple can actually live on bitcoin for 90 days.
The FBI Was a Major Bitcoin Holder
The FBI once possessed around 1.5 percent of the world’s bitcoins. After shutting down the dark web marketplace Silk Road in 2013, the FBI confiscated 144,000 bitcoins, which were later auctioned. The US government made $48 million from the auction. Unfortunately, its shutdown did not prevent more black markets from cropping up. Google search results depict the existence of a Silk Road 3.1.Several Major Corporations Accept Bitcoin Payments
You can make payments in bitcoins to companies such as Dell, Microsoft, and Overstock. That means that you can pay for laptops, hotels, and throw pillows with bitcoin.
In Africa, there are also several online retailers that have started accepting bitcoin as a payment method.
- The Early-Bird Advantage
If you had invested $100 worth of bitcoins in 2010, you would be a bitcoin millionaire in 2017. For example, Barry Silbert, the founder of Digital Currency Group, bought 48,000 bitcoins from the Silk Road auction in 2014.
At that time, one bitcoin was worth $350. In 2017, Silbert’s investment has increased over 16 times and has made him a very wealthy man.
Published on December 8, 2017 By Angeline Mbogo.