“Bitcoin is a technological tour de force,” says Bill Gates.
When a person of his stature shares an insight, the world pays attention. It is abundantly clear, now more than ever, that cryptocurrencies are here to stay.
As the world prepares itself for its biggest ever digital transformation, cryptocurrencies remain an alien concept to many.
Even the most seasoned cryptocurrency experts may have missed out on some fascinating facts about this digital asset class. So, today we’re going to unravel some mystery around these agents of transformation of the 21st century.
Bitcoin’s creation saga is right up there with the Bermuda triangle. Hold tight, this might have you clench your armrests in awe.
Bitcoin was first introduced to the world in 2009 by a person (or possibly a group of persons) who went by the name Satoshi Nakamoto. In the latter part of 2010, he disappeared from the internet, never to return.
So far, 16 men have laid claim on the name Satoshi Nakamoto. A Japanese-origin individual by the name of Dorian Satoshi Nakamoto was found in California, US. However, he denied having any connection with Bitcoin.
Intriguingly, his neighbor Hal Finny, one of the OG cypherpunks was interviewed by Forbes. When he was asked if he was Satoshi Nakamoto, he broke a smile and uttered “no…”
While we still don’t have a face attached to the name Satoshi Nakamoto, we know one thing for certain—he is among the richest people in the world today with 980,000 bitcoins in his wallet.
If you ever followed crypto prices, you know they can take massive swings overnight. The phenomenon is attributable to the fact that there is no centralized exchange for trading cryptocurrencies and traders use several cryptocurrency exchanges. This fuel’s volatility can wash your wealth away in a matter of minutes. Look at this bitcoin chart, for example:
Notice how massive the fluctuations can be within just a day’s time frame.
This is the primary reason why a lot of investors choose to stay away from cryptocurrencies. It does not function as a great store of value like fiat currency.
However, there is some relief for those who seek lower volatility in the crypto-verse.
Stablecoins are a new breed of cryptocurrencies that are created with the sole purpose of eliminating the volatility-induced woes of crypto investors. For example, look at how small the fluctuations are (for the same duration as the previous chart) in USDT:
A currency, by nature, must function as a good store of value rather than an investment so people are encouraged to spend it, rather than holding on in anticipation of price appreciation. Stablecoins aim to offer the best of both worlds—a non-volatile digital currency that retains the features of anonymity and security.
The most popular stablecoins today include Tether (USDT), TrueUSD (TUSD), and USD Coin (USDC), among others. If you find this interesting and want to test the waters, buy USDT first and then move on to other stablecoins. Speaking of types of cryptocurrencies…
Everybody wants a piece of the crypto action. The increased popularity and demand for cryptocurrencies have resulted in creators rolling out new cryptocurrencies like there’s no tomorrow.
As of this writing, the internet is home to over 4,000 cryptocurrencies. Quite obviously, most of these will never be beneficiaries of the glamour that Bitcoin or Tether have received. Although, there is always an off-chance that you will find a diamond in the rough that will multiply your wealth 10x or more.
The alternative cryptocurrency group has some interesting candidates on the list. Some creators have brainstormed out-of-the-box names to stand out of the crowd such as DogeCoin, PizzaCoin, and Coinye (so named after the popular rapper Kanye West).
While none of the altcoins (alternative cryptocurrencies) have managed to dethrone Bitcoin, the crypto market does offer compelling options like USDT and Ethereum.
Come May 22, celebrate Bitcoin Pizza Day with your crypto-enthusiast pals. The story of Bitcoin Pizza Day will be etched on calendars for centuries. What’s the story, though?
Well, it was on May 22, 2010, that a Bitcoin developer received 2 pizzas from Papa John’s. However, he paid for the pizzas worth $41 with 10,000 bitcoins. At today’s price, that’s $563,171,000.
One fine morning, Laszlo Hanyecz decides to express his desire on the Bitcointalk forum saying he wants to buy 2 pizzas and he will pay 10,000 BTC for the pizzas. Laszlo’s offer saw no takers for 4 days.
Finally, a gentleman named Jeremy Sturdivant agreed to enter the transaction. This was the first transaction where a person used bitcoins to purchase a product, and another person accepted it as valid payment.
While this story has become popular all over the world, most people don’t know that Laszlo kept this offer open even after his transaction with Papa John’s and in total purchased 8 pizzas by paying 40,000 bitcoins.
This story reminds bitcoiners across the world as to how far Bitcoin has come. So, what’s the most you ever spent on 2 pizzas?
5. Lose Your Wallet? Kiss Your Crypto Money Goodbye
One of the best things about a crypto wallet is that your money is safe… as long as you don’t lose your private keys.
If you lose them, you’ll never see your crypto money again. Hacking your way to recovery is hardly an option given the blockchain technology’s structure. Your crypto wallet will absolve in the crypto-abyss, never to be seen.
Here’s another mind-boggling crypto saga: James Howells, a resident of Newport, Wales happened to bin his hard drive that held 7.500 units of bitcoin in 2013. Howells had been mining Bitcoin during its infancy when it was worth much less than it is today.
He has been making repeated attempts to convince the Newport City Council to allow him to search the landfill for his hard drive. After paying a visit to the landfill, Howells expressed that he has no hope of finding the hard drive.
Recently, though, he spoke with CNN and said he has a plan in the works. He aims to use a grid reference system to identify a particular landfill area to dig and find his hard drive, without violating any environmental or safety standards.
He has also offered to give away 25% of his fortune to “anyone who is struggling right now.”
Can you imagine getting some sound sleep at night knowing you trashed millions of dollars worth of crypto?
6. Bitcoin is Liberland’s Official Currency
Liberland is the birth-child of a Czech individual named Vit Jedlicka who is an activist, publicist, politician, and… you guessed it—the president of Liberland. This micronation, formed on April 13, 2015, is nestled between Serbia and Croatia.
Liberland has 560,000 residents, but no airports or bitcoin ATMs. However, Liberland’s official currency? Bitcoin!
The government justifies its choice by arguing that blockchain technology offers security and transparency for recording financial transactions. Even as some mature economies continue to dodge the crypto wave, this newborn nation has adopted an ambitious approach to setting up a futuristic financial framework.
Although, Liberland is not the sole fan of bitcoin. The city of Launceston, Australia has contemplated the bitcoin-ization of their city’s economy with the backing of local businesses and the government.
7. You Can’t Ban Crypto… Although Some Really Try
Some countries bite their nails in nervousness at the mention of cryptocurrencies. So much so, that some countries have decided to ban cryptocurrencies altogether. Some of the uber-anxious countries that have banned blockchain currencies are:
The Law Library of Congress’ report on the Regulation of Cryptocurrency Around the World has all the details you need.
The resentment stems from the fact that cryptocurrencies essentially eliminate the need for intermediaries like banks. When banks are upset, they phone the government and push their agenda.
That being said, there are several other reasonable concerns for governments, too. A very obvious issue that becomes apparent is complexities with taxation. Some countries like Iceland are wary of cryptocurrencies because the government feels it could result in excess money leaving their economy. Saudi Arabia, on the other hand, dislikes cryptocurrencies because it doesn’t agree with Islamic principles.
The ban, however, does not stop anyone who wants to buy cryptocurrency. As long as residents in any of these countries have an internet connection, they can sign up for an e-wallet and start buying.
Conclusion
The buzz around cryptocurrencies is no more a fad. It’s happening and it’s going to have a far-reaching impact, even on you.
The world is witnessing one of the most incredible changes humankind may see in this century. Embrace this change as we usher into an era of faster, advanced, and more secure financial transactions.
The facts described in this article are some of the most mind-boggling facts about cryptocurrencies, but it is not an exhaustive list of facts. Keep learning about the crypto wave, and prepare yourself—we are in for an exciting future!
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