The digital currency market is still in its infancy, and with the Bitcoin boom, it is hard to believe that many people have only heard of the currency recently. Whether your Bitcoin knowledge is just a few bullet points or you’ve been following cryptocurrencies for many years, here are a few interesting facts you may not have known about bitcoin.
- The 1,400% increase for the first time in 2017 was not Bitcoin’s best performance
The performance of Bitcoin in 2017 made countless headlines, simply because of the explosion in the digital currency’s movement and enormous dollar value, based on data. percent, 2017 wasn’t Bitcoin’s year of success – not at all. In 2011, for example, Bitcoin increased from $ 0.31 to $ 6.18, up 1,894%. In 2013, Bitcoin jumped from $ 13.44 to $ 751 representing a 5,488% increase. And in 2010, Bitcoin rose from $ 0.0015 to $ 0.31, showing a staggering 20.566 percent.
- The true founder of Bitcoin is a mystery – but still owns a lot of Bitcoin
Bitcoin was created by Satoshi Nakamoto. However, many people believe that the name is just a nickname. Whoever the founder of Bitcoin is, he or she is estimated to own nearly a million Bitcoins – enough to give him a slot on Forbes’ list of world’s wealthiest.
- There can only exist 21 million Bitcoins
Below is a brief explanation of how Bitcoin was created in three simple sentences. People use sophisticated computer software to solve complex math problems and process Bitcoin transactions, and those who solve that problem are rewarded with a “block” of coins, which are given out for 10 minutes. / times. Currently each block contains 12.5 bitcoins, but this number will be halved every four years, so the supply will also decrease over time. Ultimately it will stop at 21 million Bitcoins created, that last batch of Bitcoin will fall in the year 2140.
- Bitcoin is not free
The big point in Bitcoin’s appeal is that it can transfer money anywhere in the world at minimal price. And this has been a problem – Bitcoin’s average transaction fee was below $ 0.10. However, with the surge in popularity today, that has changed. From mid-2017 until now, Bitcoin’s transaction fees are usually at $ 5.00 and peaked at $ 34 in mid-December. Since then, the price has dropped to around $ 1, but it’s important for newbies to be aware that Bitcoin is not completely free to use.
- Most of the bitcoins mined are not used
Of the 17 million Bitcoins that have been mined, or created, about 64% have never been used so far. Part of that may have been lost forever by reasons like the owners mistakenly misplacing their wallet keys, and will never be used. So, even though 21 million Bitcoins will be mined eventually, the actual number in circulation will likely be less than a few million.
- The majority of people making money from Bitcoin have not paid taxes
In 2015, only 802 US citizens included Bitcoin in their tax returns. However, the number above is not too much, as Bitcoin only increased by about 150 USD in 1 year, up 53% at that time. In 2017, Bitcoin raised $ 1,400, but only 0.04% more tax returns in mid-February were required for Bitcoin (or other digital currency) income, according to Credit Karma data. Bitcoin is considered an equity asset by the IRS and is taxed under the tax code on capital gains. In other words, if you make a profit from buying (or mining) and then selling Bitcoin, it is the same tax amount as when you buy and sell a stock for profit.
- Someone used to pay 10,000 Bitcoins to buy pizza
This happened on May 22, 2010. The above Bitcoin was worth less than $ 50 at that time. Today, if a person sells pizza to hold bitcoin, then its value could be around $ 109. At least the buyer will get two pizzas.
- There are more than 1088 other cryptocurrencies besides Bitcoin
Since Bitcoin was created, there have been countless other digital currencies on the market in such a short time. As of this moment, there are 1088 cryptocurrencies listed on Coinmarketcap, according to the website coinmarketcap.com, and many more are being created.
To be fair, there are many small and obscure digital currencies with low monetary value or ambiguous practical purpose. However, there are a number of formidable competitors that are targeting Bitcoin’s shortcomings. For example, the number two digital currency – Ethereum – is currently valued at $ 69 billion and has a shorter transaction time and much lower costs than Bitcoin.