Blockchain On The Brain? 25 Interesting Bitcoin Facts
Bitcoin is one of the earliest cryptocurrencies that swept the internet. And, as such, it’s one of the most well-understood cryptocurrencies, too.
However, some facts about Bitcoin aren’t as well known as you might think. While most people who enjoy buying and trading this currency understand its basic concepts and the history of Bitcoin, they aren’t as well versed in its fun facts.
If you’re interested in learning a bit more about this currency, we’re here to help. Here are 25 interesting Bitcoin facts that you won’t believe!
1. No One Knows Who The Creator Is
Bitcoin first came into being in 2008, when a whitepaper was published. The Whitepaper explained the concept behind Bitcoin and outlined important cryptocurrency facts.
At the time, the paper was published under the name Satoshi Nakamoto. Several people came forward to identify themselves as Satoshi Nakamoto, but these were proved to be false claims. As of 2021, there is still no clue as to who Satoshi really is.
2. Its Creator Likely Owns Millions Of Bitcoin
Bitcoin’s mysterious creator did a lot more than simply create Bitcoin and leave the scene. In fact, it’s widely thought that he still owns roughly one million dollars worth of Bitcoin.
While no one can prove this, the reason is that most of the original Bitcoin is distributed among many wallets. These wallets never have any outgoing Bitcoin, leading conspiracy theorists to believe they belong to Satoshi.
3. There Is A Limit To The Amount Of Bitcoin
Unlike physical money, Bitcoin has a limit. That’s because Bitcoin is determined by a very specific code.
What this means is that there will never be more than 21 million units of Bitcoin. Once it reaches its capacity, users will no longer be able to mine Bitcoin.
4. You Can Buy A Part Of A Bitcoin
Imagine if you could buy a fraction of a cent? People could wind up buying very small amounts of money, right?
With Bitcoin, this is actually possible. You can buy a fraction of a Bitcoin and can even divide it out to 8 decimal places. The smallest unit of Bitcoin is currently known as a SAT, named after its creator Satoshi.
5. There Is A Pizza Day Dedicated To Bitcoin
They say there’s a holiday for everything, and if this holiday is anything to judge by, that may be the case! May 22nd is known as something called Bitcoin Pizza Day.
This day was created because it was the first time someone used Bitcoin to make a physical purchase. On this day, shortly after the currency was developed, someone bought two pizzas using 10,000 bitcoins, and just like that, a holiday was created.
6. Bitcoin Is Mined And Turned Into The Blockchain
Bitcoin isn’t simply invented out of nothing. In fact, it’s mined by people called miners who spend their time creating blocks on the Bitcoin network. These are then added to a chain of earlier transactions.
Because a chain of Bitcoin blocks is created, it’s known as the “Blockchain”. The people who work on and process that blockchain network is the miners, who are rewarded for their work with more Bitcoin.
7. Bitcoin Is Not Backed By Any Government
Traditional currencies are backed by governments. They are centrally organized and distributed in banks. Bitcoin does not work in the same way.
In fact, Bitcoin is only backed by a group of people who believe in it. It’s not condoned by any, one government agency. This is what makes it a “borderless currency” and makes it able to be used across various continents.
8. People Try To Create Fake Bitcoin
We all know that fraudulent currency is a criminal activity where fake bills and coins are made to look like the real deal. One of the fun facts about Bitcoin is that there are fraudsters who also try to make fake Bitcoin.
A fake Bitcoin is called a fork, and the process of making fraudulent Bitcoin is known as forking. However, no matter how hard these fraudsters try, they simply are not able to create a currency that is as successful as Bitcoin is.
9. A Lot Of Bitcoin Will Never Be Spent
Probably one of the most frustrating cryptocurrency facts is that the full amount of Bitcoin will most likely never be spent. That’s because it is locked away in wallets that can’t be accessed.
Experts speculate that roughly 4 billion dollars worth of Bitcoin is currently tucked away in Bitcoin wallets that can’t be accessed. That Bitcoin will be permanently lost once all the Bitcoin has been mined.
10. Bitcoin Made Waves In The Tech Community
Bitcoin has been praised ever since it was first created. For instance, billionaire Paul Tudor Jones stated that Bitcoin was like the gold rush in the 1970s.
Another person who praised Bitcoin highly was Twitter’s CEO. He said that The Whitepaper that was originally published explaining Bitcoin was like a piece of poetry.
11. Bitcoin Can Be Used To Purchase Almost Anything
What you’re able to buy with Bitcoin is determined by whether or not the seller will accept it as a form of currency. And, what that leads to is some rather bizarre purchases.
Anyone wanting to take a trip to outer space, purchase a webcam show, or get a pet goat can use Bitcoin to do so. These are all items that have been recorded as Bitcoin purchases at one point or another.
12. Bitcoin’s Value Is On The Rise
When Bitcoin was first created, it wasn’t worth nearly as much as it is today. That’s because, over the last several years, Bitcoin’s worth has increased by 700%!
In fact, that pizza purchase we mentioned earlier is today considered one of the most expensive food orders ever made. That same amount of Bitcoin today would be worth more than $500,000,000.00.
13. You Can’t Reverse Bitcoin Transactions
Most of us rely on the fact that if we accidentally make a purchase, all we have to do is contact the seller and undo it. In the world of Bitcoin, however, this isn’t the case.
Bitcoin transactions can’t be reversed at all. Once a transaction has been made and finalized, you’re stuck with whatever you purchased. Think twice before clicking that “pay” button, as you won’t be able to get your money back once it’s spent!
14. Bitcoin Transactions Are Anonymous
When we use credit cards, we’re actually transmitting a lot of personal data. We often have to sign for purchases or use a PIN number, both of which are identifying factors.
To use Bitcoin, you don’t need to give any personal data whatsoever. You can use a pseudonym to complete your purchase rather than using any actual data. Watch out, though. This means that sometimes Bitcoin gets used for some sketchy transactions.
15. There Are Debates Over Whether Bitcoin Is A Currency Or A Commodity
When we hear the word Bitcoin, we typically associate it with the word cryptocurrency. In other words, we’re thinking of it as a form of payment or as a currency.
However, the SEC and the IRS actually view Bitcoin as a commodity rather than a currency. Because of this, Bitcoin can actually be classified both as a commodity and as a currency.
16. People Have Made Fortunes Of Bitcoin Tools
It’s not just Bitcoin itself that is valuable. The hardware and technology used to mine Bitcoin have also become extremely valuable.
Today, individuals and companies alike have made a great deal of money by selling Bitcoin graphics and other software needed to mine Bitcoin. This is one of many things that have made it an extremely profitable currency.
17. You Can Lose Bitcoin
Bitcoin is stored and used for purchases with personal keys. These keys are represented by letters and numbers, and without them, you’re not able to buy and sell Bitcoin.
One young man, James Howell, made the mistake of throwing out an old hard drive that contained several personal keys. The total amount of money he lost was $7,500 worth of Bitcoin.
18. Bitcoin Will Run Out In About 100 Years
As you know, Bitcoin will eventually run out. Because there is a finite supply of Bitcoin, at some point or other, the last Bitcoin will be mined, and it will no longer be able to be collected.
While Bitcoin still has quite a lot of life left in it, it’s estimated to run out in the year 2140. That gives us a little over 100 years to mine the rest of the Bitcoin out there.
19. Bitcoin Is Not The First Cryptocurrency
While Bitcoin is certainly one of the earliest cryptocurrencies to come into existence, it’s not actually the first. That comes as a shock to many people, but it’s the truth!
The first cryptocurrency was actually something called Digicash, which was created way back in 1989. However, people didn’t go for Digicash, and it quickly faded away. Years later, Bitcoin was invented, and it took off.
20. Many People Have Predicted Bitcoin’s Death
There are hundreds of theories out there about how Bitcoin will cease to exist. To be exact, there are 306 different theories about what is going to happen to put a stop to this cryptocurrency.
Most theories revolve around the value of Bitcoin crashing. And, for diehard Bitcoin fans who are worried about losing their cryptocurrency, they can actually create an obituary for their Bitcoin.
21. Bitcoin Cannot Be Banned
As much as governments may want to put a stop to Bitcoin, this simply isn’t a possibility. In fact, Bitcoin cannot be banned by any organization at all. The best that can be done is that it can be regulated, just like any other currency.
While some countries have tried (and failed) to ban Bitcoin, others have made it an integral part of society. Bolivia, Vietnam, Thailand, and Bangladesh tried and failed to ban it, while Japan, Australia, Venezuela, and Russia have made it a part of their currency system.
22. Bitcoin Can Be Traced
While you don’t need to use personal data in order to make a Bitcoin transaction, every transaction that’s made is traced. Bitcoin transactions are all stored in the blockchain’s ledger, and as long as you have the IP address, you can track the transaction.
Some people have tried to hide their Bitcoin transactions by using a VPN. However, this can’t completely hide the identity and simply makes it more difficult to trace.
23. The FBI Owns A Large Portion Of Bitcoin
A few years ago, the FBI traced Bitcoin transactions on the blockchain and shut down a black market site called The Silk Road. After shutting it down, the FBI took hold of the Bitcoin that was being used on the website.
The total amount of Bitcoin that was in use on that site was about 1.5% of the total Bitcoin in the world. While that doesn’t sound like a lot, it’s actually a huge amount of Bitcoin. Today, the FBI still holds onto that money.
24. Bitcoin Has To Be Reported On Tax Reports
While you might not think that cryptocurrency has to be reported, it does. When filing your taxes, you can’t leave Bitcoin or other cryptocurrencies off your tax return.
That’s because the government views Bitcoin as a capital asset. When you leave it off, you could actually inadvertently be committing tax evasion!
25. Mining Bitcoin Requires A Huge Amount Of Energy
Mining Bitcoin is actually an extremely high-power task. In fact, Bitcoin uses about the same amount of CO2 as one million flights across the Atlantic! That’s as much energy as the entire country of Peru, New Zealand, or Hungary.
What’s more, Bitcoin uses as much energy as it would take to power the homes of 2.5 million people. That being said, many Bitcoin mining facilities run on renewable energy resources such as sun, wind, and water.
Closing Thoughts On These Unbelievable Bitcoin Facts
These are just a few of the extremely interesting Bitcoin facts out there. This cryptocurrency is full of fun facts and interesting tidbits that you can learn about.
If you’re looking to join the world of Bitcoin users and start taking advantage of your newfound money, the team at Byte Federal can help. We’re here to get you hooked up with Bitcoin ATMs all around the world.
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