One of the biggest revolutions in modern history is happening right now. If you are interested in bitcoin trading, visit bitqs to acquire an utter guide to crypto trading.
The invention and evolution of Bitcoin have enabled people worldwide to take charge of their financial future. It all starts with understanding this new technology and its implications. From history to politics to economics and more, let’s take a look at some quick facts about bitcoin:
- An anonymous person created Bitcoin
Bitcoin was created by an anonymous person who used Satoshi Nakamoto’s name. It was released onto the World Wide Web on January 3rd, 2009, with a simple note reading, “I’ve developed a new open-source P2P e-cash system named Bitcoin. This is a peer-to-peer electronic cash system without a central server or trusted parties, based on peer-to-peer networking.”
- Bitcoin isn’t a Ponzi:
Bitcoin is much more than a pure Ponzi scheme (like classic bank accounts). Bitcoin doesn’t pay interest, offers principal returns, and is not vulnerable to inflation. It was created to be a valuable alternative currency for online transactions, much like cash has been for the physical world for centuries.
- 20% of total bitcoin are lost permanently:
There are currently only about 12.4 million bitcoins in circulation, with a total cap of 21 million. Of those, the vast majority are owned by ‘long-term investors’, and many have been lost or kept as backups or ‘cold wallets’ – more on that later.
- The world’s most valuable currency isn’t money: It’s data
Most people think about currency as cash (actual bills) or credit (a monetary liability of a bank). Those who understand bitcoin know that the most valuable currency in the world is data. Bitcoin can be understood as an asset class called cryptocurrency. So think of bitcoin as simply another way to store value – like gold, but better!
- Bitcoin is similar to gold:
Bitcoin offers many similarities to gold as a store of wealth and commodity and serves as an alternative currency. It’s also similar to other currencies such as the US Dollar and the Euro (fiat currencies). However, unlike them, there is no central issuer or “government” that backs up bitcoin.
- Bitcoin is genuinely global.
Bitcoin is the only currency not tied to a physical location or government, and it doesn’t care about your skin color or where you were born. With a faster and more secure payment process than any other currency in existence today, it’s no wonder Bitcoin is an international phenomenon.
- Bitcoin transactions are anonymous:
Bitcoin transactions are quick, secure, and anonymous! This is what makes bitcoin so great for online shopping (think of your favorite “darknet” sites). There is no need to worry about sharing sensitive information with anyone.
- Bitcoin is regulated by math:
Bitcoin can be regulated by math (specifical cryptography). It’s decentralized, it’s peer-to-peer, and it’s anonymous. The code behind bitcoin can’t be changed or broken into random pieces by any government or bank. That’s powerful!
- Bitcoin transactions confirm in an hour:
Bitcoin transactions confirm in an hour (on average), with no chance of being reversed or hacked. That means you don’t have to wait ten days for your credit card to get approved, and you don’t have to put up with the annoying restrictions banks often put on small business accounts (and their fees!).
- When someone pays you with bitcoin, there is no record of it ever happening:
Bitcoin transactions are entirely anonymous, and there is no record of them ever happening – that means you can hand someone a bitcoin payment without telling anyone. This makes bitcoin transactions much more private than traditional cash or even credit cards. This also means that nobody can “follow” your digital payments and see where they’re going; it’s private!
- No one can freeze your bitcoin account:
No one can freeze your bitcoin account simply because there isn’t any account to freeze. For example, there is no central issuer of bitcoins and no banks. This means that you don’t need anyone’s permission to transact with bitcoin. Also, no single person or entity has control over the network – it’s peer-to-peer!
- You don’t need a bank to manage your bitcoin:
You don’t need a bank to do anything with bitcoin; you can easily store it in an encrypted digital wallet that you keep on your computer (or on an external hard drive). Furthermore, you can create this wallet yourself, and it doesn’t cost a dime!