Most governments are skeptical about having a currency that is not centralized and besides this skepticism, cryptocurrency still thrives and is estimated to grow in popularity. Investors in cryptocurrencies use virtual currencies, which are exceptionally volatile and do not have a central banking system like traditional money. The lack of these fundamental ties and the traditional cryptocurrency valuation system, the underlying blockchain system makes it valuable. Here are facts about cryptocurrencies you should know. Let’s talk about interesting facts about cryptocurrency.
Bitcoin Fun Facts
• Bitcoin is king
Although there are many cryptocurrencies in the virtual currency space, Bitcoin remains to be king as it has the largest market shares and continually grows at a positive rate. There are many bitcoin fun facts; there might still be limited information about Bitcoin, which still makes investors skeptical about the online virtual currencies. The founder of bitcoin still unknown, and the first-ever Bitcoin currency which purchases goods using to buy pizza.
• Bitcoins are finite
Additional Bitcoin fun fact is that the last bitcoin might be mined in 2140 as there will ever be only 21 million bitcoins. After the 21 million marks, there will not be any new bitcoins mined as the Bitcoin supply is finite.
Some Stylized Facts of the Bitcoin Market
Let’s look at some some stylized facts of the bitcoin market below:
• Bitcoin uses blockchain technology
Bitcoin is safe, and the transactions are hard to manipulate since blockchain technology uses permanent transparent ledgers. Bitcoin shows your public address, and if someone knows this address, they will check your transactions and how many bitcoins you hold. However, users can hide their addresses using IP services such as VPN.
• When you lose the Bitcoin private key, you will lose your bitcoins
The bitcoins have a secured security system which has doubled as a tragedy for users who lose their private keys. Although the key was meant to guard against theft, the fund will be lost forever without the private key, and no one will use them. Bitcoins estimate that 25% of lost bitcoins will never be recovered as users have lost their personal keys.
• You can buy a lot of things with bitcoin
Most of the stores accept Bitcoins as a form of transaction; for instance, you can buy coffee at Starbucks, funeral items, space travel, order food, book flights, and buy Tesla with bitcoins in the US.
• Bitcoins cannot be banned
The negativity attached to bitcoins might result from the fact that it works outside of the jurisdiction of other traditional banking systems, and government might not necessarily ban it but regulate it. Contrary, some countries like Thailand, Vietnam, and Bolivia, among many others, have banned Bitcoin. On the other hand, Australia, Japan, Venezuela, and Russia have made bitcoin an official currency.
Interesting Facts About Cryptocurrency
Some interesting facts about cryptocurrency below:
• They have no backing system
Known currencies like the dollar have backing systems enforced by the central bank and the government. The backing controls currency valuation factors; unfortunately, cryptocurrency does not have one centralized backing system. Its currencies distributed in different parts of the world in a decentralized manner. The backing of the currency allows an individual to analyze earning history of trading stock and estimate the value and economic performance regarding factors such as GDP. Contrarily cryptocurrencies do not offer such fundamental valuing in traditional sense, but the market fluctuations make it easier for individuals to make timely transactions and gain adequate profits.
Decentralization is one factor that makes cryptocurrencies so enticing for investors who strongly believe that the system is much safer as there is no single large information hub where cybercriminals can hack the system. The availability of servers in different parts of the world means that even if there is a cyber-attack, the magnitude might not be sufficient to cripple the whole system.
• Value in blockchain
The decentralization of cryptocurrency information is based on blockchain technology, and this is the real value that traders seek when trading with virtual currencies. Blockchain is a decentralized ledger that records payments and transactions more safely and efficiently. It is why so many people trust virtual currencies; it has made the cryptocurrency space bigger and more exciting.
• Miners are key in the system
Miners verify the transactions on the blockchain, and they account for new transactions and payments. Crypto-mining art uses high-powered computers that solve complex mathematical equations in a competitive space and verify and log transactions. Miners get rewards in terms of cryptocurrency coins, and it can be extremely rewarding, especially for timely mining activities.
• The transactions take little time
Miners who work for the blockchains make it easier to record transactions as soon as they made since they work 24 hours a day. The transactions can be settled much faster than those made in a traditional bank which sticks to the normal working hours and closes on the weekend. Moreover, since there is no middle entity, the transaction costs would be lower with blockchain technology. Moreover, there is more user control and transparency with miners than third-party control.
• Limitations on blockchains
Blockchains can have some drawbacks, especially since new technology. Some of the limitations might include verification slowdowns and slow speed. Most users who resort to using the technology could be running away from glitches in the traditional slow databases.
Fun Facts about Cryptocurrency
Cryptocurrencies are volatile
Fun facts about cryptocurrency show that if you follow the cryptocurrencies, you will know that they are unstable. And at one point, they have the highest value, and in no time, the value drops without warning. Its value is highly volatile and fluctuates without a foreseeable, predictable pattern. It might not be for the faint-hearted; if you are willing to engage in such an unpredictable market, you should consider investing in cryptocurrency.
As a trader, if the virtual currencies excite you, these fun facts about cryptocurrencies might be what you need as you trade virtual currencies. The blockchain where the real value provides a safe, decentralized ledger that records payment and transfers transactions efficiently. Although cryptocurrencies have no centralized system, the blockchain is safe and efficient. People who move away from the traditional banking system enjoy the faster speed and the volatility offered by cryptocurrencies.