Bitcoin is a digital currency that is mysterious to some people. With time, it has gained popularity, and many people are becoming interested in it. Everybody wants to test their luck by investing in this electronic currency. Essentially, Bitcoin lets you exchange and transact differently from conventional money. Before you decide to use Bitcoin for any serious transaction, learn about it. Here are must-know facts about Bitcoin.
Contents
- Bitcoin Payments Are Irreversible
- Taxable
- 668 Million Transactions
- The Mining Process
- Almost 100,000 Bitcoin Millionaires
- The Creators Identity is Unknown
- Bitcoin Supply is Limited
- Parting Shot
Bitcoin Payments Are Irreversible
You cannot reverse a Bitcoin payment, and that’s the hard truth. The person you are transacting with is the only one that can send it back. Therefore, ensure that you can trust any organization or person before transacting with them. They should have an established reputation proving that they are legit and can reverse the transfer if necessary. The best thing about Bitcoin wallets is that most of them can recognize when you make mistakes. Thus, you may be lucky if your crypto wallet doesn’t allow you to funds to an invalid address by mistake.
Taxable
Many countries expect you to pay tax on your Bitcoin profits. It’s not an official currency, but some laws in different countries require users to pay tax on anything that generates value during a transaction. And this includes Bitcoin. Therefore, Bitcoin users should consider relevant tax implications when using this virtual currency. Ideally, follow the legal requirements from your government about paying taxes to avoid problems with the authorities when using Bitcoin.
668 Million Transactions
People and businesses have completed 668 Bitcoin transactions since its launch in 2009. The number has increased in recent years and will most likely continue as more people learn about Bitcoin and understand its benefits.
The Mining Process
Mining Bitcoin is an expensive undertaking. Setting up a Bitcoin mining rig and the cost of electricity can burn a hole in your pocket. Also, Bitcoin mining requires specific servers.
For these reasons, most people and companies prefer buying Bitcoin rather than mining. A platform like Bitcoin Trader allows you to sign up and buy Bitcoins with fiat money. Perhaps, you can visit bitcoin trader to sign up and start trading this digital currency.
Almost 100,000 Bitcoin Millionaires
It’s tough to determine how many Bitcoin millionaires or billionaires are there. And this is due to crypto wallets being anonymous, and the prices of Bitcoin fluctuate wildly. However, the world has around 98,180 addresses with BTC. Forbes in 2021 included 12 cryptocurrency billionaires in its Billionaires list. And these included the Winklevoss twins and FIX’s Sam Bankman- Fried.
The Creators Identity is Unknown
No one knows the original creator of Bitcoin. In 2009, Satoshi Nakamoto introduced this digital currency. In 2010, this mysterious entity vanished from the internet. No one knows if they’re still alive or dead. There are some conspiracies about the founder where theorists believe that four companies were behind the establishment of Bitcoin.
The only way Satoshi Nakamoto communicated with people was via emails or conferences. Also, his Bitcoin wallet holds around 980,000 coins, making them the wealthiest entity in the world.
Bitcoin Supply is Limited
Only 21 million Bitcoins will ever exist. Out of the total, miners have generated only 16.3 million. The Bitcoin protocol stipulates that miners will produce all the possible tokens in 2140. According to the Bitcoin protocol, miners can’t generate fresh Bitcoins after hitting this number.
The Bitcoin system reduces the rewards for miners by half every four years. And this explains why while about 90% of the total possible Bitcoins are already in circulation, the remaining 2.2 million coins will take many years to generate.
Parting Shot
Bitcoin has dramatically grown in popularity, mainly because of its underlying technology, transparency, and efficiency. This electronic currency is not the only cryptocurrency in the world. However, it’s the pioneer virtual currency that gave it the first-mover advantage. Understanding these facts will enable you to decide whether to use, trade, or invest in this virtual currency.
