In the last decade, cryptocurrency has been a hot topic in business and investment. For most people, the term cryptocurrency is almost linked to Bitcoin. This is not because bitcoin is the only cryptocurrency available. Instead, Bitcoin was and still is the most popular, valuable, and recognized cryptocurrency globally.
Despite its popularity, Bitcoin is still a mystery to many people. Many people are not in a position to give information at their fingertips on what Bitcoin looks like and how it is traded, if any.
Here are six facts you need to know about Bitcoin:
1. Bitcoin Trading
Like most cryptocurrencies and other financial resources, Bitcoin is traded in the stock market, and thus it is heavily dependent on the art of speculation and timing. Like every other asset in the stock market, the aim is to buy stocks with a low value that you believe will rise. The speculative nature of the stock market favors Bitcoin as it is constantly fluctuating in value, making it a dream for short-term trade makers. Trading works in two significant ways: the short game and the long hold. The short-game trading is buying stocks and selling them iteratively as soon as their value rises.
On the other hand, a long hold is more about making an investment at the perfect time and holding on to the stock, waiting for the right moment to sell to make a windfall profit. Like every trade, it is a risk. You buy and sell Bitcoin on the stock market in hopes of making a profit on every trade, but as is expected, the outcome is not definite, though worth it. Finixio AI is the perfect platform to trade bitcoin if you are a newbie or a guru. It will give access to advanced market scanning equipment and all you need to make a successful trade.
2. Bitcoin Mining
When you hear the term mining, you immediately think of precious metals and valuable minerals. Well, it is also a household name when it comes to Bitcoins. Bitcoin mining is how new Bitcoins are created. It refers to ensuring that transactions are valid and added to the Bitcoin blockchain correctly using a global network of computers running the Bitcoin code. The bitcoin mining process involves verifying new transactions against the Bitcoin network, which results in the production of new bitcoins. It is done by solving complex cryptographic hash puzzles to verify blocks of transactions updated on the decentralized blockchain ledger. Solving these puzzles requires sophisticated computing power and versatile equipment. As a result, miners are rewarded with Bitcoin, which is then released into circulation hence the name Bitcoin mining.
3. Bitcoin as a Legal Tender
While most economies are still reluctant to consider legalizing most cryptocurrencies, including Bitcoin, Some big Economies like the US, the UK, and India have legalized Bitcoin. Some countries are keen to warn their citizens about Bitcoin involvement based on its decentralized nature, with no central regulatory authority.
However, some countries have boldly legalized the Bitcoin trade and used it as legal tender. Have you ever heard of Liberland? Liberland, also known as the Free Republic of Liberland, is a micronation in Southeast Europe claiming an uninhabited parcel of disputed land on the western bank of the Danube between Croatia and Serbia. The official currency of Liberland is bitcoin. Other than Liberland, Bitcoin is a legal tender in El Salvador.
4. The Mysterious Creator
Besides its mysterious nature, Bitcoin has its founder hidden behind the mist and fog of a closed book. Bitcoin was introduced to the world under the pseudonym of Satoshi Nakamoto in 2009. The identity of “Satoshi” is still an enigma yet to be solved. According to Gavin on Bruce Wagner’s Bitcoin podcast, Satoshi’s vanishing may have been linked to the CIA meeting. Andresen said that he hadn’t received an email from Satoshi since notifying him about the meeting with the CIA. In 2014, Gavin appeared before the Council on Foreign Relations to present similar information.
5. The Power of a Password
Image source: https://unsplash.com/s/photos/bitcoin-wallet
Password has never been more potent than it is with Bitcoin ventures. Just like you save money in your online bank accounts, your Bitcoins are kept in a Bitcoin wallet. It’s a highly secure storage wallet. But, if you lose it, your Bitcoins are lost forever. According to Chainalysis, about 30% of bitcoin is lost forever due to people forgetting their password.
6. The Maximum Number of Bitcoin
Many people will be surprised to realize that the maximum number of Bitcoins isn’t the popular 21M. Instead, it’s to the tune of 20,999,987.4769, with the last Bitcoin expected to be mined in 2140. The lower number is due to Satoshi’s block reward mechanism, which doesn’t quite reach 21M, but also due to mining errors that have negated the creation of new coins. To put it succinctly, the block reward will be just 0.19531250 bitcoin as of April 2039, with 99.6% of bitcoin already issued, making mining no longer profitable long before the due date.
Bitcoin—the most popular, widely used, and sought-after cryptocurrency—is veiled by many mysteries. This article introduces you to the six crucial facts about Bitcoin that everyone should know and therefore puts you in a position where you can make informed decisions.