TOP 10 BITCOIN FACTS YOU NEED TO KNOW

Hi guys! I m sure a lot of us here have heard about Bitcoin at least once or twice in our lives having heard about it so much we may have formed our preconceived notion about it. Now you're here to get to the bottom of things or maybe you've been contemplating investing, so now you're doing your research either way knowledge is power or rather factual knowledge is power, so get your pens and pads and join us as we dive into some basic things you need to know when you want to learn about Bitcoin.

Bitcoin is a Cryptocurrency first of all don't be fooled by the image you see on the internet. Bitcoin is not some tangible gold coin with a modified Thai baht symbol, it's actually purely digital currency, and it's managed by a decentralized network that uses a highly sophisticated type of encryption called cryptography that records the transaction in a distributed ledger that's what we call the blockchain. It's a Cryptocurrency facilitated by a technology that allows you to transfer money across the internet effectively and securely without involving any third parties such as banks or other intermediates.

Bitcoin is neither a fraud nor some elaborate scheme though they cant be seen, touched, or stored in our wallet or credit cards, it doesn't mean that aren't legit. People have been able to different commodities and make different types of transactions using Bitcoin in fact according to yahoo financial the Bitcoin network settles approximately 10 Billion worth of transactions each day. Bitcoin operates under the same philosophy as the fiat currencies we're familiar with taking, for example, us dollars just like Bitcoin it is not backed by anything other than the complete faith of the individuals involved and that all parties will accept during transactions. One of the key differences is that Bitcoin isn't as widely accepted yet that is now changing. 

They cant be recreated just like how money doesn't grow on trees Bitcoin doesn't just pop up somewhere nor can it be easily duplicated or counterfeited by hackers or technology junkies no matter how ingenious they are. It's actually one of the main characteristics that make Bitcoin a successful currency in the first place, so how do you create Bitcoins well, the only answer to that is by mining them and you mine them via the blockchain which as I mentioned earlier is the primary technology facilitating the transaction of Cryptocurrencies. This incorruptible database records and timestamps every transaction called blocks in chronological order and when a miner contributes to the underlying blockchain algorithm by successfully solving a cryptographic puzzle they are then awarded a new coin or transaction fees, the whole process of mining require huge amounts of energy bandwidth and hardware, not to mention its also highly competitive take notes you really need significant amounts of energy. Trust me the cost of electricity will greatly outweigh the value of the Bitcoin you be able to mine. On the plus side, this is also the sole reason why Bitcoin is so difficult or almost impossible to counterfeit.

No one knows who created Bitcoin back in 2008 the creators or team of creators used the alias Satoshi Nakamoto to publish a white paper explaining Bitcoin, right before it started being mined in the following year other than that piece of information their identity remains completely anonymous naturally, there have been dozens of theories surrounding Nakamoto's real identity but the most popular among them suggests that it is Nick Zabo an American computer scientist and cryptographer he's well known in the Bitcoin world as a great commentator on anything Bitcoin related including blockchain technology, though he has always denied speculation still he remains as a strong candidate among Bitcoin enthusiasts number six Bitcoin price is highly volatile. Bitcoin prices behave like an economic bubble with drastic increases and sudden decreases over short periods of time according to Bitcoin.org this is because of its relative newness unique nature and illiquid market ever since its appearance almost 13years ago Bitcoins current value has been solely driven by the speculative interest. It is generally treated as a high-risk asset and people say that you should never store money in it that you can't afford to lose despite this it doesn't automatically mean its bad news or something you should steer clear from if you can remember gold was considered highly volatile asset way back in 70's and that was the time it had reached its peak price nowadays the trend is setting a Bitcoin is gaining grounds as good as gold when you want to cash out there are various available service providers that are willing to convert it to your local currency. 

Bitcoin is not completely anonymous Bitcoin transactions are highly secure, yes but they're not completely impenetrable. We know that government agencies and highly skilled hackers can track almost anything including Bitcoin transactions. If you recall these transactions are publicly and permanently stored in the blockchain network meaning anyone can view the balance and transaction history behind a Bitcoin address though the identity behind the address remains unknown if a person can connect multiple to the network data gathered may be just enough to determine where this transaction might have originated that's why it's highly recommended you use Bitcoin addresses only a few times or just once.

Bitcoin introduced a better way of exchanging money. Remember all the hassle of transferring money from one place to another or from one bank to another? Also you know how expensive the exchange rate fees are well that's where the beauty of Cryptocurrency lies as I mentioned earlier, the whole network removes the involvement of any third parties once upon a time when Bitcoin's price wasn't yet that volatile. You could buy everyday local items like pizza or coffee for a few cents even more incredible is you could transfer one million dollars worth of Bitcoin to a friend in another country with less than a dollar, of course, now it's not practical to use it for buying your groceries but it can still be ideal for exchanging huge amounts of money abroad. According to falls Bitcoin as the first successful programmable money on the blockchain gave us universal virtual and borderless cash claiming it is only beginning.

Countries treat Bitcoin differently while countries like Japan and Australia accept Bitcoin as currency the Jordan and Lebanese governments have issued official announcements that, they do not acknowledge and support the use of Bitcoin but that doesn't stop some of its citizens from using them to be fair. The fact that Bitcoin isn't regulated by national governments is hugely part of the reason why it's so popular.

Bitcoin is finite though there are Cryptocurrencies that are infinite in resource bitcoin supply is limited when it was founded more than 10 years ago the creator made exactly 21 million of them as of now over 16 million are in circulation either traded Or safely stored still more are being mined each day. 

Bitcoin is still at an experimental stage as a new form of currency. Bitcoin is actively improving each year drawing in newer appeals and further shaping the future of money however with each new charm a new challenge for adopting it mainstream also arises, so if you're someone who's looking forward to investing and being involved expects slow transaction confirmations increasing fees and sometimes more severe issues so, I advise you to be smart about it make sure to consult a technical expert before investing and also keep in mind that because of its infancy no one is able to accurately predict Bitcoin's future. On the other hand Bitcoin is the key currency of mankind's digital future.

Its is always good to do your own research. So if you have any basic questions or comments kindly write us in the comments section.