Here are some interesting facts about Bitcoin.
From barter system to credit cards, humans have progressed a long way in terms of exchanging currencies. Also, the developers are always trying to create a unique currency for the digital marketplace. One such hallmark in the evolution of currencies are the Bitcoins. As unheard and intriguing as they may sound, Bitcoins have gone way too far in creating their own existence in the today’s digital world. Bitcoins are the first decentralized digital currency system and here are the ten most interesting facts about the Bitcoin.
1. Free, cheap and easily accessible!
Bitcoin is considered to be the cheapest way of transaction method in the present world. It is because its network is totally free and just needs extra money to fasten the transaction process. It can be used from anywhere in the world. Though illegal, your account cannot be frozen at any given point of time as there are no authoritarian limits. The transactions are verified by the state-of-the-art encryption, the same method which is used in military and government applications. Bitcoin cannot be easily barred down by any Governments or companies as it inherits a peer-to-peer (P2P) architecture.
Bitcoin transactions can be carried out easily using the internet. No third parties are involved, making the process safe.
2. Fake owners, mystery names and yet a billion dollar set up.
Bitcoin, the first digital currency system has no central authority, and everything related to the project is anonymous. The identity of the owner is yet to be known to the real word, as the creator hides behind a fake name, Satoshi Nakamoto. The digital currency can be mined using a free application recognized as Bitcoin Client. Bitcoin is an open-source software and hence holds no proprietorships. The most prevalent client is handled by a clan of open sourced developers.
3. Pizza worth a million dollars.
Bitcoiner, Lazio Hanyecz purchased two Papa John’s pizzas for not less than 10,000 bitcoins (Bitcoin price) in May 2010. That concludes that the pizzas cost him a staggering amount of $82, 69,964 in today’s world. A whole lot of money, isn’t it? (Bitcoin Calculator)
Mr. Hanyecz had claimed this bitcoins by mining on his personal computer. According to the bitcoiner, the bitcoins hardly had any value in the market and considered it super cool to exchange the bitcoins for the yummiest of pizzas. He also exchanged a huge sum of bitcoins when the rate was $1 for a bitcoin. He doesn’t regret exchanging them at a low rate because no one knew the future of the bitcoins back then. Also, he managed to get $4000 by exchanging the bitcoins which helped him getting a new computer.
4. Bitcoin network, smarter and wittier than the Supercomputers.
The computing supremacy of the entire Bitcoin network is predicted to 2046 364 Pflop/s. Its computing power is multiple times better than the most powerful supercomputers, which is estimated around 274 Pflop/s. So many brains have been put forth to generate computing power as huge as this. Don’t you wish the same power was used for creating a sustainable economy or in the fields of medicines and physics? Wouldn’t it be more helpful to the mankind? Thumbs down to the bitcoiners in this case, though.
5. $16, 24, 29,169 worth a single transaction. One of the facts about Bitcoin is that a crazy amount of money we can only dream of! Yes, we haven’t added the numbers on our will, but that is the largest ever transaction made on the Bitcoin network. The transaction was dated back on 31st July 2014, and it consisted of 1, 94,993 bitcoins, that sum up to a mind boggling more than 162 million dollars. A huge load of money went swirling there. And all we can do is dream. Just dream!
6. Currency for the illegal activities.
A hospital was hacked in February 2016, and was asked for ransom by the hackers. The entire system of the hospital was in wrong hands, and as a result, none of the operations could move further. So many lives in the hospital were on the line and therefore, the hospital authorities complied with the hacker’s ultimatum.
Bitcoins worth 17000 dollars were paid as ransom. It wasn’t the only crime that involved extortions involving bitcoins. There were many cases registered before the hospital case but didn’t come into the limelight due to its lower sum of ransom. Extortionists are tough to identify, as the bitcoin wallets are not registered with any Governments. Also, it has become the most feasible form of currency for the digital extortionists.
7. Incredible ascend yet vulnerable!
From pennies to a dollar, and then worth a several hundred dollars, the Bitcoins have had a monstrous leap since its invention. Even after making a commendable growth in the digital market, its value still fluctuates and remains quite vulnerable. Hence, people are yet to accept the currency completely. In the year 2014, bitcoins faired a drop of about 60 %, and many intellects thought that it would finally perish out.
Fortunately for bitcoins, many companies in the Silicon Valley started investing in it. Moreover, many companies started accepting bitcoins as a mode of payment. Its technical innovations and investors helped the company to prosper again, making it a huge success.
8. Silk Road connection.
For those who don’t know what the Silk Road is, it is a place where illegal drugs were sold online to anonymous buyers across the globe. The first considerable use of the Bitcoins was on the Silk Road. Once you entered the site, you could buy from cocaine to LSD’s to fake id’s and stolen credit card numbers. As bitcoins were introduced, it was difficult for the F.B.I to track down the digital operations. After several investigations and operations, the site was brought down by the F.B.I in 2013, putting a closure on the illegal activities.
9. Bitcoin mines are for real.
These mines are where complex algorithms are solved, and the bitcoins are spawned. The miners have generated huge fortunes for themselves, as no government has taken firm actions against them. These mines are predominantly located in China, and they are hidden since they work outside the law. Likewise, the operations carried out are way too secretive. The largest mine in the country is owned by the entrepreneur, Chandler Guo which generates approximately 8 million dollars annually.
10. Bitcoins could die a natural death.
Bitcoin enthusiasts feel that it may demise because it has lost the original motive for which it was created. It was initially supposed to be a decentralized currency, contrary to the physical currencies. It is controlled by a small group of people now, which is exactly opposite of what was fictional. As well, the bitcoin transaction process has slowed down as it takes anywhere from around an hour to 14 hours for a transaction to occur.
According to Mike Hearn, a bitcoin enthusiast, the failure of the bitcoin is inevitable. The primary reason for the downfall has to be that, that it is controlled by a very small group of people. Bitcoin may extinguish or not, but it has created a huge phenomenon in the today’s internet age.